UNITED Progressive Kinabalu Organisation (Upko) president Datuk Ewon Benedick said there must be an alternate solution if the federal government cannot meet Sabah’s demand for fulfilment of its constitutional right to gain 40% of its revenue.
Benedick (Kadamaian-PH) said this as talks on Sabah’s rights are supposed to be finalised in July 2024.
“In our collective determination to seek a comprehensive solution to this demand, I hope and suggest the Sabah government come forward with a proposed special grant formula that is acceptable if we cannot agree with the formula by the federal Finance Ministry.
“I propose the advisory committee established earlier, led by the state finance minister, be strengthened with an expert team.
“This team should comprise professionals in law, taxation, accounting, auditing and finance, as well as former judges and weighing experts, to assist the Sabah government in presenting a sustainable formula based on the interpretation of the constitution and analysis of federal taxes and revenue in Sabah,” he said during the Sabah budget debate in Kota Kinabalu today.
Sabah is entitled to 40% of net revenue collected by Putrajaya, as stipulated in article 112C and section 2(1) of Part IV of the Federal Constitution.
Benedick supported calls for the collection of federal revenue from Sabah to be done in the state, and suggested the same be imposed on multinational companies operating in Sabah but not registered in the state.
He said this was because such companies channel their transactions to their parent companies, usually based in the peninsula.
“This proposal is to allow Sabah to enjoy additional revenue for the state budget while continuing negotiations for the collection of indirect federal revenue.
“To further enhance Sabah’s revenue, I suggest the government stipulate state equity ownership in every direct investment by multinational companies, whether domestic or foreign, carried out in Sabah.
“This includes multinational companies seeking extensions of leases in the plantation sector,” he said.
Benedick also called for equal distribution of jobs in the public sector for all races and religions in Sabah.
He said the demographics of the state and federal services do not reflect the state’s diversity.
“Appointments and promotions within the civil service in Sabah must involve the participation of all ethnicities and religions.
“It is disheartening to encounter complaints about recruitment as they don’t mirror equal composition,” he said.
Benedick proposed vacancies, promotions and appointments to senior positions be based on a percentile policy to foster mutual assistance and reflect the spirit of the state’s slogan – “Sabah Maju Jaya”. – The Vibes, November 27, 2023.
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