KOTA KINABALU – Sabah Finance Minister Datuk Seri Masidi Manjun today clarified that the state government has not relinquished its rights to 40% of revenue after allegations that it had.
He said the current formula for the special grant paid by Putrajaya to the state for five years was merely an interim solution.
Masidi firmly said Sabah will never compromise or surrender its state rights under the federal constitution.
“This absolute position applies to the special grant entitlement pursuant to Article 112C and section 2 of Part IV in the Tenth Schedule, as well as Article 112D of the federal constitution which provides for a formula and review of the 40% net revenue entitlement that the federation derives from Sabah.
“It is necessary to make this thoroughly clear in response to baseless allegations that the state government has foregone its rights in relation to this special grant.
“I can categorically state the state did not relinquish any of its constitutional rights in respect of the arrangement in 2022 for an interim solution,” said Masidi.
“If both parties are unable to come to an agreement after negotiations then we will refer this matter to an independent assessor as provided in Article 112D (6) of the federal constitution,” he added.
He was responding to claims the state has done away with its 40% revenue entitlement, following the latest review of the formula pending further negotiations with Putrajaya.
Opposition leaders and legal experts claimed the possibility of a constitutional breach of the state’s revenue rights when Putrajaya published a review order on April 20, 2022, which revoked the Sabah Special Grant (first review) Order 1970.
Sabah has been getting a fixed payment of RM26.7 million following the failure of the state and federal governments to carry out the mandatory five-year review, after the first review was held.
The special grant was raised to RM125.6 million in April last year, which Masidi said was without prejudice to Sabah’s state rights.
The absence of any mention of fixed payments between 1974 and 2021 in the review order, however, raised questions, with the Sabah Law Society dubbing that period as “the lost years” of non-fulfillment of the 40% revenue entitlement. – The Vibes, July 18, 2023
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