KOTA KINABALU – Datuk Ewon Benedick (Upko-Kadamaian) today said the Sabah government needs to press the federal government about the special grants provided under the federal constitution.
Speaking at the state assembly, he said Articles 112C and 112D of the constitution grants two-fifths or 40% of the revenue obtained from Sabah to be returned to the state.
He said that the special grant was doubled in Budget 2020 – from RM26.7 million to RM53.4 million – but was reverted to RM26.7 million for 2021.
“I feel the budget is an insult to the people of Sabah. The Sabah leadership in 1976 permanently handed over gas and oil rights to the federal government through Petronas. It cannot be that this provision is only worth RM26.7 million for the next few years.”
He said the Special Affairs Department’s RM85.5 million allocation should be rejected in place of increased special grants for Sabah.
Ewon said the budget is still being debated and Sabah representatives need to speak out.
He said the previous state administration should also be credited for introducing the oil and gas product sales tax in December 2018.
Ewon said that since the tax came into force on April 1, all oil and gas companies operating in Sabah except Petronas had paid the tax.
On the federal budget, he said the prime minister had requested an allocation of RM1 billion for special projects.
He said the Sabah government should insist on as much as possible – at least one-third of the RM1 billion allocation, if approved by Parliament – to be given to Sabah and managed by the state government. – The Vibes, November 16, 2020
