TAMBUNAN – The increased special grant of RM125.6 million to Sabah is too small given what the state is actually entitled to, said Sabah Star president Datuk Seri Jeffrey Kitingan.
He said the payment should not be regarded as a replacement for the special grant due to Sabah, which is 40% of the net revenue derived by the federal government in the state.
“This is our right under the federal constitution. This increase, which is more than four times the current payment of RM26.7 million, should not jeopardise our efforts to assert our constitutional rights,” he said in a statement today.
He added that the RM26.7 million has remained stagnant for the past 49 years.
The deputy chief minister said that originally, the Sabah and federal governments were set to conduct formal financial reviews every five years as required by Article 112c and 112d of the federal constitution.
However, not a single review has been held since 1973.
Sabah will receive RM125.6 million in special annual grants from the federal government this year, almost a fivefold increase from RM26.7 million paid to the state previously.
The special grant to the state will also increase each year for 2023 to 2026, according to a rate mutually agreed by both the federal and Sabah governments.
However, Kitingan said, in the absence of the reviews, the first review formula (of 7.5% yearly increment) could have been applied, which would have resulted in a payment of about RM900 million today.
He also reiterated his position that the federal government should not drag its own financial problems into the mix.
“The federal government has already collected 100% of their net revenue in Sabah.
“They should know that they should set aside RM0.40 for Sabah for every RM1 collected. However, this has not happened.
“The federal government is concerned about its financial position. What about Sabah's financial needs? Be fair to us,” he said. – The Vibes, April 15, 2022
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