Federal Gov't Will Not Appeal 40 Per Cent Special Grant Ruling, Negotiations With Sabah To Begin – AGC

PUTRAJAYA, Nov 11 (Bernama) -- The Federal Government has decided not to file an appeal against the decision relating to the Special Grant based on the 40 per cent revenue share for Sabah, as provided for under the Federal Constitution, according to a statement by the Attorney-General’s Chambers (AGC).

Accordingly, the AGC said the Federal Government would begin the negotiation process with the Sabah Government as soon as possible.

“A special Cabinet meeting held today discussed the Kota Kinabalu High Court judgment relating to the Sabah Special Grant that was decided in the judicial review application by the Sabah Law Society against the Malaysian Government,” the statement said.

The AGC said the Federal Government respected the principle of the 40 per cent Special Grant enshrined under the Federal Constitution.

At the same meeting, the Attorney-General also provided advice and views to the Cabinet regarding several defects in the judgment’s reasoning, including allegations that the Federal Government and the Sabah Government had abused their powers and breached constitutional obligations said to have involved both governments since 1974.

The AGC said that the Grounds of Judgment also stated that the Review after 2021 was unlawful, irrational and disproportionate.

“The Federal Government will appeal with regard to the defects in the reasoning of the judgment,” the statement said.

On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government acted unlawfully and beyond its constitutional powers when it failed to fulfil Sabah’s rights to 40 per cent of federal revenue for the years 1974 to 2021.

The decision was delivered by Judge Datuk Celestina Stuel Galid, who described the special grant made between the Federal Government and the Sabah Government as “invalid, ultra vires and irrational” and in breach of the Federal Constitution.

The court also issued a mandamus order directing the Federal Government to conduct a revenue review with the Sabah Government under Article 112D of the Federal Constitution to reinstate Sabah’s right to 40 per cent revenue for each financial year from 1974 to 2021.

The order required the review to be carried out within 90 days, while a mutual agreement between the two governments must be reached within 180 days from the date the order was issued (Oct 17).

-- BERNAMA