Kota Kinabalu: The State Government will oppose an application by the Federal Government for a stay of last year’s High Court order on the State’s entitlement to the 40pc share of net federal revenue for the “lost years”.
In a statement, Sabah Attorney-General Brenndon Keith Soh said the State Government remain committed to “complying with both the letter and the spirit of the High Court decision”.
The State Government, he added, had consistently engaged with the relevant federal authorities to exchange information, verify data and discuss possible methodologies for determining the quantum of the 40pc special grant entitlement.
Soh said the State Government had also mooted proposals and frameworks to assist the parties in progressing towards an agreement.
He said under Article 112D(6) of the Federal Constitution, should the parties ultimately be unable to reach agreement, the provision necessitates the appointment of an independent assessor, whose recommendations on the matter “shall be binding on the governments concerned and shall be given effect as if they were the agreements of those governments.”
This constitutional safeguard ensures that the review process contemplated under the Federal Constitution can be concluded in an orderly manner even in the absence of a mutually agreed settlement.
“It is therefore the State Government’s considered position that there has been no delay or lack of cooperation on the part of the state in the implementation of the High Court order.”
On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government had acted unlawfully by failing to honour Sabah’s 40pc share of net federal revenue derived from the state for nearly five decades.
The court directed the Federal Government to conduct a review with Sabah to determine the quantum of the state’s entitlement for each financial year from 1974 to 2021.
It was also ruled that the review must commence within 90 days of the delivery of the judgment and be completed within 180 days, or by April 15.
The Federal Government filed an application to stay the High Court’s order on March 3.
Soh went on to say that in light of the ongoing discussions and the approaching timeline stipulated by the court, the State Government felt that both parties should continue to focus on fulfilling the terms of the High Court order.
The state and Federal Governments should also work towards an equitable resolution within the prescribed timeframe.
“The State Government therefore remains ready, willing and able to continue engaging with the Federal Government in a constructive manner, with a view to reaching a mutually agreed outcome consistent with the constitutional provisions governing the special grant and the terms of the High Court’s order.”
