Joint technical committee to be set up over Sabah’s annual grant proposal: Ongkili

PUTRAJAYA – A joint technical committee will be set up by the Joint Consultative Committee (JCC) under the Special Council on Malaysia Agreement 1963 (MKMA63) to study Sabah’s proposal of an annual grant.

Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Seri Maximus Ongkili said the technical committee will also be scrutinising the federal government’s counter-offer.

Speaking after the first Federal-Sabah Malaysia Agreement 1963 JCC meeting on annual grants here yesterday, he said they also discussed the terms and references on issues related to Sabah’s special grants.

During the meeting chaired by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, state Local Government and Housing Minister and Finance Minister II Datuk Seri Masidi Manjun made Sabah’s submissions for review of the annual grant in appeal for urgent repayment of due claims to the state, which Putrajaya came up with a counter-offer. 

“However, during the two-hour meeting, we agreed for a technical committee to study in detail the state’s proposal and the counter-offer by the federal government,” said Ongkili. 

He added that the committee is hopeful that some conclusions can be reached on claims before the MKMA63 meeting to be chaired by Prime Minister Datuk Seri Ismail Sabri Yaakob next month.

The urgent repayment of the Sabah claim relates to the backdated payment the federal government owes Sabah since 1973.

In 1973, the federal government opted for a fixed rated payment of the annual grant to Sabah despite the state’s revenue sharing formula was 60:40.

The terms are stated in Article 112C and Part IV of the 10th Schedule of the federal constitution and therefore, should be non-negotiable.

Since 1973, instead of returning Sabah its revenue entitlement in staggered amounts, Putrajaya opted to pay RM26.7 million annually at the point of time.

Also present in the meeting were Sabah Attorney-General (A-G) Datuk Nor Asiah Mohd Yusof, Finance Ministry permanent secretary Datuk Rusdin Musidi Riman, and former Sabah A-G Brenndon Soh. – The Vibes, January 7, 2022