Malaysia

‘Special grant raise for Sabah far less than constitutional formula’

Interpretation of 40% formula lies with Federal Court, not assessor, says Pakatan Harapan

Updated 4 years ago · Published on 21 Apr 2022 8:18PM

‘Special grant raise for Sabah far less than constitutional formula’
Sabah Pakatan Harapan says that the responsibility to interpret the constitution lies with the Federal Court, not with an independent assessor. – The Vibes file pic, April 21, 2022

KOTA KINABALU – Sabah Pakatan Harapan (PH) leaders have taken the state government to task for not insisting on the 40% revenue entitlement for the state before agreeing on a review of the matter with Putrajaya.

They said the review is questionable given that it disregards the 40% revenue-sharing formula as stated in Article 112C of the federal constitution and Subsection 2(1) of Part IV of the Tenth schedule.

Subsection 2(1) specifies the amount of the special grant that Sabah is entitled to, being two-fifths (40%) of the revenue that the federal government collects from the state. 

In a statement, Sabah PH questioned the basis on which the state government agreed to the 4.7-fold increment made on the special grant for this year. 

They noted that the state and federal governments have stated that Sabah is due to receive RM125.6 million in the form of a special grant beginning this year.

Previously the amount was RM26.7 million, an amount originally intended for 1973. 

“Clearly, the agreement to increase the special grant by multiplication of 3.7 is not premised on the 40% formula,” the PH leaders said in a joint statement.

The statement was signed by Sabah PKR chief Datuk Christina Liew, Upko president Datuk Seri Wilfred Madius Tangau, Sabah DAP chief Datuk Frankie Poon Ming Fung, and Sabah Amanah chief Lahirul Latigu.

“Since this is so, does that mean the state government has agreed to set a new precedent for future reviews to the detriment of Sabah?” they asked. 

“The move can be seen as conceding to any review under Article 112D of the federal constitution while disregarding the 40% formula. 

They said that the state government should have insisted on the 40% entitlement before agreeing to any review, and the federal government must respect the applicability and acknowledge the rights to the 40%.

“If the 40% formula remains a stumbling block in talks between the federal and state governments, then the responsibility to interpret the constitution lies with the Federal Court, not with an independent assessor, as stated under article 112D (6).”

The Sabah government has welcomed the higher special grant, but maintains it will continue to pursue the 40% revenue entitlement. – The Vibes, April 21, 2022 

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