Kota Kinabalu: Former Chief Minister Tan Sri Harris Salleh has criticised Warisan President Datuk Seri Mohd Shafie Apdal’s widely publicised claim regarding Sabah’s 40 per cent revenue entitlement, describing it as a misunderstanding of how a democratic government operates.
He said the 40pc often cited refers to revenue collected from Sabah through taxes, but stressed that every cent collected by either the Federal or State Government is deposited into the Government Consolidated Account.
According to him, both the collection and allocation of such funds must be approved by Parliament for Federal matters or the State Legislative Assembly for State matters before any spending can take place.
“The Government then allocates the funds for various economic development projects. The 40pc cannot simply be withdrawn or distributed by any party to ‘bagi-bagi’,” he said in a statement.
Harris emphasised that under the law, particularly the Federal Constitution, no government can withdraw or allocate funds from the Government Consolidated Account without proper legislative authorisation.
He further said that the much-discussed 40pc is not a separate pool of money, but part of overall government revenue.
“Under the law, the 40pc is not a separate fund. It is government money. The only difference, then, is whether one is wearing baju kuning or baju merah,” he said.
He also urged leaders to provide fair and accurate information to the public to avoid confusion over complex fiscal matters.
Harris’ remarks come amid renewed calls by Shafie, who is also a former Chief Minister, for the immediate implementation of the 40 per cent entitlement, following a court decision affirming Sabah’s rights.
During the State Legislative Assembly sitting here on Monday, Shafie, who is Senallang Assemblyman, insisted that the payment must be made without delay, arguing that there is no need for further negotiations.
He maintained that if the Federal Government is unable to pay the full amount immediately, it should consider staggering the payments instead.
The Semporna MP also opposed the Federal Government’s move on March 3, 2026, to seek a stay of execution on a High Court order mandating a financial review, urging the State Government to take a firmer stance.
He stressed that court decisions rooted in the Constitution should not face delayed enforcement.
At the same time, Shafie has consistently said that the 40 per cent net revenue entitlement is distinct from Federal development expenditure, such as funding for hospitals or police stations.
He described the entitlement as a form of “lost revenue” repayment based on constitutional provisions, and not part of routine development allocations.
