Appeal filed by Federal Government not against 40 pcent Sabah revenue formula - AGC clarifies

THE Attorney General's Chambers (AGC) stressed that the appeal filed by the Federal Government in the Sabah revenue dispute is not against the 40 per cent formula.

According to the AGC, the Court of Appeal allowed the Federal Government's application to stay the implementation of the judgment given by the Kota Kinabalu High Court on October 17, 2024.

This is regarding the review of the Sabah State Special Grant from 1974 to 2021, pending the hearing of the Federal Government's appeal at the Court of Appeal.

"This stay is to enable the Federal Government's appeal to be heard and not become academic and futile.

"The stay order does not cover the High Court's findings regarding the 40 per cent allocation under Article 112C of the Federal Constitution.

"The Attorney General's Chambers also stresses that the appeal filed by the Federal Government is not against the 40 per cent formula," he explained.

However, the AGC stated that the Federal Government's appeal was against some of the High Court's decisions, including several issues involving the interpretation of provisions in the Federal Constitution and also the finding that the Federal Government and the Sabah State Government had abused their power and violated their constitutional obligations since 1974. – April 6, 2026