Malaysia

Sabah Pakatan withdraws suit over state revenue entitlement

Move took into account implementation council on MA1963, they say

Updated 7 months ago · Published on 20 Sep 2023 4:30PM

Sabah Pakatan withdraws suit over state revenue entitlement
Their decision took into account the setting up of the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) chaired by the prime minister himself and the progress of the technical committee for MTPM63. – The Vibes file pic, September 20, 2023

by Jason Santos

KOTA KINABALU – Sabah Pakatan Harapan (PH) has decided to withdraw their originating summons to proceed with legal action over the 40% entitlement of state revenue, which was filed in June 2022. 

According to 12 Sabah PH elected representatives, their decision took into account the setting up of the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) chaired by the prime minister himself and the progress of the technical committee for MTPM63 chaired by Deputy Prime Minister II Datuk Seri Fadillah Yusof.

The 12 elected representatives are Sabah PH chairman Datuk Christina Liew (Api-Api assemblyman), Upko president Datuk Ewon Benedick (Penampang MP and Kadamaian assemblyman), Sabah DAP chairman Datuk Frankie Poon, Upko honorary president Datuk Seri Wilfred Madius Tangau (Tuaran MP), PKR Awang Hussaini Sahari (former Putatan MP), DAP’s Chan Foong Hin (Kota Kinabalu MP), DAP’s Phoong Jin Zhe (Luyang assemblyman), DAP’s Jannie Lasimbang (Kapayan assemblyman), PKR’s Peto Galim (Inanam assemblyman), DAP Tan Lee Fatt (Likas assemblyman), DAP’s Tan Lee Fatt (Likas assemblyman) and DAP’s Noorita Sual (senator).  

“We have agreed to withdraw our originating summons, but with the liberty to file a fresh one. 

“If the remaining issues have not been resolved and could not be agreed upon, we reserve the right to bring this case back to court to pursue any unresolved constitutional rights, as provided for in the Malaysia Agreement 1963. 

“In respect of the claim that Sabah ought to receive the special grant from 1974 based on the 40% formula, this is still part of the agenda in the technical committee and shall be finalised within 12 months (starting July 18) as announced recently. 

“We are also mindful of the opinions regarding the legal impediment concerning the position of the plaintiffs in the originating summons as the current members of the federal and state cabinet, that it is untenable for us to continue this legal action,” they said in a statement here today. 

Sabah PH representatives filed their originating summons on June 3, 2022 to seek a court order for the federal government to recognise Sabah’s constitutional rights as provided under Article 112C and Section 2 (1) of Part IV of the tenth schedule of the federal constitution.

The constitutional rights provided the special rights to receive special grants amounting to two-fifths (40%) of the federation’s net revenue deriving from Sabah. 

The formation of the new federal government late last year saw Prime Minister Datuk Seri Anwar Ibrahim announce the formation of the MTPMA63 chaired by Anwar himself. 

Another technical committee is chaired by Fadillah to deliver the constitutional rights of Sabah and Sarawak as intended in the Malaysia Agreement 1963. 

It is noted that one of the plaintiffs of the originating summons was Ewon, who was appointed as a permanent member of the MTPMA63 and the technical committee alongside other members of the Sabah government. 

“It has also been decided by the technical committee that the longstanding Sabah’s entitlement based on the 40% formula shall be one of the agenda in the technical committee and the same is to be resolved within 12 months from July 18.

“We are also pleased to know that the disclosure of the total amount of net revenue collected or derived from Sabah annually will now be made known to the representative of the Sabah state government by being a member of the Inland Revenue Board when the amendment to the Inland Revenue Board Act 1995 re-tabled soon in Parliament. 

“We are also made aware that the 2022 review will be superseded by a new review, which will be ready soon…this new review will increase the amount of special grants to be given to Sabah. 

“What is equally important, this new review shall clearly state as an ‘interim solution’ and as such does not affect Sabah’s right to claim for its special grant to be based on the 40% formulae for the affected years. 

“With these developments, two of the three declarations we sought in our originating summons have been agreed to and will be implemented soon.” – The Vibes, September 20, 2023

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