A Sabah Umno leader has lambasted the state government over its handling of the 40% revenue entitlement issue, following contradictory statements by two senior cabinet ministers.
Umno Kota Kinabalu division chief Musliati Moslimin said the failure to convene a scheduled meeting on 30 June — intended to address Sabah’s constitutional claim to 40% of net federal revenue collected from the state — revealed deeper problems within the state administration.
“This is not just a technical oversight.
“It reflects a systemic failure in governance when two top state ministers are issuing conflicting accounts,” she said in a statement.
She was referring to statements by Deputy Chief Minister Datuk Dr Jeffrey Kitingan and Finance Minister Datuk Seri Masidi Manjun, who gave differing explanations over whether a letter had been sent to the federal government to initiate the meeting.
Dr Jeffrey had earlier claimed that no letter had been issued, while Masidi said Sabah had in fact sent two letters — one offering to host the meeting — and that the delay was due to a request from Deputy Prime Minister Datuk Seri Fadillah Yusof.
Musliati said the inconsistency suggested a lack of coordination at the highest levels of the state government.
“This is not a matter of who is right. The real issue is why the state government cannot function with consensus.
“If a matter as crucial as this cannot be managed properly, how can we expect Putrajaya to take Sabah seriously?” she said.
The 40% entitlement refers to a long-standing constitutional provision under Article 112C and 112D of the Federal Constitution, which entitles Sabah to receive back 40% of net revenue collected by the federal government from the state.
However, the entitlement has not been fulfilled since 1974, prompting recent political pressure for its restoration.
The Sabah Law Society had also filed a judicial review on the 40% revenue entitlement and referred to the non-payments as the lost years.
The technical meeting which is chaired by Fadillah has now been postponed to July 15.
It was aimed at resolving Sabah’s revenue entitlement.
Musliati warned that the state’s fight for its rights must be grounded in competent administration and not just political rhetoric.
“A government that fails in governance cannot claim to be defending the rights of the people.
“Governance begins with order. Without order, there is no governance. Without governance, there is no future,” she said. - July 5, 2025
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