Anwar to Brief Parliament on Sabah’s 40% Revenue Share Decision
PUTRAJAYA (Nov 12): Prime Minister Datuk Seri Anwar Ibrahim will address Parliament tomorrow to explain the government’s decision not to appeal the Kota Kinabalu High Court ruling on Sabah’s 40% revenue entitlement under the Federal Constitution.
Anwar, who also serves as finance minister, said the briefing will clarify the government’s stance on the court’s findings as well as the appeal process concerning the perceived flaws in the judgment.
The decision, he said, was made collectively after a special Cabinet meeting convened to deliberate on the issue.
“Following a special Cabinet meeting (yesterday) to review the Kota Kinabalu High Court judgment, we reached this decision after hours of discussion, taking into account the views and proposals of every Cabinet member,” Anwar said during his monthly address to staff of the Prime Minister’s Department.
The event was also attended by Deputy Prime Minister Datuk Seri Fadillah Yusof and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.
Following the Federal Government’s announcement, the Attorney General’s Chambers (AGC) confirmed on Tuesday (Nov 11) that negotiations with the Sabah Government will begin immediately.
The AGC reaffirmed that the federal government respects the principle of the 40% special grant guaranteed under the federal constitution. However, it also noted that there were several “defects” in the High Court’s reasoning, including allegations that both the Federal and Sabah Governments had abused their powers and failed to meet constitutional obligations since 1974.
The AGC further highlighted that the court’s Grounds of Judgment deemed the 2021 revenue review “unlawful, irrational, and disproportionate.”
On October 17, the Kota Kinabalu High Court ruled that the Federal Government had acted unlawfully and beyond its constitutional powers by failing to fulfill Sabah’s right to 40% of federal revenue from 1974 to 2021.
Judge Datuk Celestina Stuel Galid described the special grant arrangements between the Federal and Sabah Governments as “invalid, ultra vires, and irrational,” breaching constitutional provisions.
The court also issued a mandamus order compelling the Federal Government to conduct a revenue review with Sabah under Article 112D of the Federal Constitution, reinstating the 40% entitlement for each financial year from 1974 to 2021.
The review must be completed within 90 days, with both governments required to reach a mutual agreement within 180 days from the issuance of the order.
Tomorrow’s parliamentary briefing is expected to shed light on how Putrajaya intends to proceed with the negotiations and fulfill Sabah’s long-standing fiscal rights.