This not to be missed!

Published on: Sunday, June 18, 2023

By: Datuk John Lo

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SABAH LAW SOCIETY’s exemplary fighting spirit for Sabah.

Attend SLS’ Townhall meeting to understand Sabah’s entitlement of 40% of net revenue.

I hope many Sabahans, especially Members of Parliament and Assemblymen, political leaders and the public will attend the Townhall organized by the Sabah Law Society on 21st July 2023 between 2 to 3.30pm. Further details are available from SLS. Many people, include a number of leaders have spoken on the subject without fully understanding the complexity and the severity of implications of Sabah’s entitlement of the 40% of net revenue. They should have conducted sufficient research on this very important subject.

MPs and Assemblymen, if at all possible, should attend this SLS Townhall to enable them to raise this subject in Parliament and Legislative Assembly in an informed manner.

I believe SLS has spent tons of efforts on this subject before taking the Federal Government to court.

There has been a lot of speculations, speeches, writing on this subject. SLS’s legal interpretation and preparation for this legal suit is probably the most succinct.

The Court of Appeal will hear the case on 14th September 2023. Its decision will have far reaching legal and economic consequences for Sabah and Sabahans for generations.

The Sabah Government, very rightly, has joined the SLS action.

Whatever the Court of Appeal’s decision will be, I expect it will eventually end up in the Federal Court [final appeal].

The Sabah Law Society is a statutory body established pursuant to section 7A of the Advocates Ordinance (Sabah Cap. 2) which was amended by the Advocates (Sabah)(Amendment) Act 2016 which came into effect since 1 July 2017.

Being a statutory body, meaning it is part of the Sabah Government, SLS has the locus standi to sue the Federal Government for the payment of the 40%. SLS is apolitical.

I applaud and congratulate SLS President Roger Chin and Sabah Law Society.

As a Sabahan, I am deeply appreciative, as all Sabahans should be, that SLS has taken the action to sue the Federal Government for the 40% as it has procrastinated for years, has been giving peanuts grant to Sabah to avoid settling the issue.

To prove my point, on 25th November 2018, as Minister of Finance, Lim Guan Eng has stated that the Federal Government could not pay the 40% to Sabah because of cash flow problem of the Federal Government. Yet it has plenty of money to spend on W Malaysia’s development. Very important that Lim did not say that the Federal Government was disputing the payment. Lim’s attitude is reflective on the low priority W Malaysian leaders have for Sabah. Very insulting.

The court initially granted leave on SLS’s application for a judicial review. On 2nd February 2023, the High Court granted the Federal AG a “stay” or suspension of the judicial review by SLS. SLS has applied to the Court of Appeal to rescind it.

The action by SLS is in keeping with Hajiji’s firm stand to protect and insist that Sabah’s rights under MA 63 should be honoured and implemented by the Federal Government fully. This is the new Sabahan spirit that SLS has also adopted.

In true Sabahan fighting spirit, Roger has assured Sabahans in his public statement “As SLS brought this judicial review as a public interest litigation ultimately for the people of Sabah, SLS assures the people that they would rigorously oppose the AG’s appeal in the Court of Appeal.

https://www.thevibes.com/articles/news/84554/high-court-stays-sabah-law-bodys-judicial-review-on-special-grant

https://www.dailyexpress.com.my/news/213825/court-hearing-on-judicial-review-of-the-40pc-special-grant-sabahans-urged-to-participate/

https://www.malaysiakini.com/news/453340

SLS’s taking the Federal Government to court on the 40% is more than just legal. There will be serious and long term economic, financial significance and Federal State relationship.

I shall address the Federal/State relationship first. The aforementioned statement by Lim Guan Eng is a lesson all Sabahans must learn and put it to heart as it is insulting. The W Malaysian leaders have no priority for Sabah. Their political interest is in W Malaysia. Their hearts and minds are to win over the voters in W Malaysia. I don’t blame them as this is their political survival. But Sabahans must fight tooth and nail to protect our equity rights. Can’t let others trample us under their feet, impoverish us and plunder our resources to the point that many Sabahans have become economic refugees in W Malaysia.

Secondly, the 40% case has vast thorny economic and financial implications. How to define NET REVENUE? Net revenue implies there are expenditure items involved. These expenditure items will define and affect the amount of net revenue. Has Sabah Government given a carte blanche for the Federal Government to spend the revenue from Sabah? Or should the Federal Government seek prior approval from Sabahan Government? Does Sabah know the total CORRECT, ACCURATE amount of revenue taken out of Sabah in all the years that the Federal Government has failed to pay the 40%? The key words are CORRECT, ACCURATE. For example, what amount of revenue has been collected since 1st Malaysia Day until now from oil and gas, income tax, company tax [Petronas and oil palm companies, timber companies], windfall tax and cess from oil palm, tourism tax, airport tax, import duty etc.

1. SABAHANS

wishing to understand MA63 N SABAH’S Rights ON 40% Should Attend.

2. The court of appeal will hear SLS case. This is very important to Sabahans and

future generations.

3. Please circulate if you’re a true Sabahan.

For the life of me, the total amount must be in the billions each year and the total, hundreds of billions especially after oil and gas have been discovered and exploited. How much of this has come from Sabah? The Federal Government should, in fairness, pay Sabah 40% of the total revenue from Petronas in addition to the 5%.

To ensure proper accountability and to be fair to Sabah, there must be a COMPREHENSIVE forensic audit. This is the best and fairest course of action which the Federal Government should allow unless it has some other motive OR something to hide.

I am certain many concerned Sabahans want to ask questions or seek clarifications on the action taken by SLS against the Federal Government during the SLS Townhall meeting.

To ensure Sabah’s equitable share, including this 40%, Sabahans must unite and support Hajiji’s effort to regain and protect our rights. We cannot allow ourselves to be short changed any more. Enough is enough.

Calling for more Sabahans to assist Hajiji to regain Sabahan control of economic ownership.

Sabah needs more leaders, especially many more young Sabahan leaders like Roger Chin, to resuscitate the Sabah’s economy. We have lost 2 generations of economic development, can’t let another generation down. Hajiji has prepared the foundation. Every Sabahan has a duty to themselves, their children, grandchildren, to their fellow Sabahans, to contribute to the rebuilding and regaining control of Sabah’s economy. Let’s focus: [a] political leaders should stop politicking, prove their economic leadership mettle, start rebuilding Sabah’s economy. [b] All able bodied Sabahans should take advantage of the increasing opportunities from the inflow of investments. [c] Young Sabahans should follow the example of Roger Chin, be proactive to protect Sabah’s rights, initiate new economic activities and assist Hajiji to regain our economic ownership. Spread the Sabahan spirit of SABAHANS FIRST POLICY. [d] Sabah must inject new vigour in the implementation of SABAHANS FIRST POLICY so that we can retain wealth in Sabah [not to be taken away like in the past], to retain capital for our own development. We must have many successful Sabahan entrepreneurs. [e] We must strengthen our economic development institutions [especially those in implementation] so that we can implement economic agendas and regain economic ownership control.

- The views expressed here are the views of the writer John Lo and do not necessarily reflect those of the Daily Express.

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