KOTA KINABALU: A review order on Sabah’s overdue 40% special grant published in April last year that makes no mention of the “Lost Years” – 48 years of entitlement denied to the people of Sabah – was a serious breach of constitutional duty, says the Sabah Law Society (SLS).
Its president Roger Chin said this review order published on April 20, 2022 – which revoked the Sabah Special Grant (first review) Order 1970 – was a serious breach of the constitutional duty owed to the people of Sabah.
“SLS deems this action by the (then) Federal Government as a serious breach of its constitutional duty, which has had significant legal consequences,” he added.
Chin said the people of Sabah had suffered the consequences of this breach for a prolonged period from 1974 to 2021, amounting to 48 years of denied entitlement.
“These are what we refer to as The Lost Years, and it is the people of Sabah who bear the burden,” he added.
He said the issue was the lost years which had to be reviewed at the times given and the order in April 2022 made no mention of the lost years.
That was ultimately the issue, he added.
Chin said on April 14, 2022, the federal and state governments had announced the agreement on the payment of annual grants for the period of 2022 to 2026, yet negotiations regarding Sabah’s 40% entitlement were still ongoing.
He said the duty to pay Sabah’s 40% net revenue special grant entitlement was crucial in bridging the economic gap and ensuring the progress and well-being of the people in this state.
He said Sabah’s 40% entitlement, which was due to be paid immediately after the formation of the Federation of Malaysia on Sept 16, 1963, was a fundamental right granted under the Malaysia Agreement 1963 (MA63).
This entitlement, alongside other rights, was explicitly mentioned in the Report of the Inter-Governmental Committee dated Feb 27, 1963, highlighting the significance of Sabah’s financial provisions for its development needs, Chin said.
He said Sabah and Sarawak were acknowledged to be economically behind Malaya – now Peninsular Malaysia – at the time of Malaysia’s formation.
“Thus, the duty to pay Sabah’s 40% entitlement was crucial in bridging the economic gap and ensuring the progress and well-being of the people of Sabah,” he added.
Chin said Article 112C and Section 2 of Part IV in the Tenth Schedule of the Federal Constitution clearly outline the constitutional duty of the Federal Government to pay this entitlement to Sabah.
“But this duty is subject to review, as prescribed under Article 112D. The first review should have taken place no later than 1969, and a second review no later than 1974,” he said.
He said before initiating the 40% claim action, SLS engaged in extensive consultations with political parties across the political divide, ensuring transparency and inclusivity in their approach.
“We are heartened to note the positive response from the state government, as Chief Minister Datuk Seri Hajiji Noor acknowledged SLS’s application for a judicial review in respect of the 40% net revenue special grant that Sabah is entitled to under the Federal Constitution,” Chin said.
He said the state government recognised its initiative as a non-partisan, non-political pursuit aligned with the constitutional arrangements when Sabah joined Malaysia in 1963.
