Sabah Finance Minister Datuk Seri Masidi Manjun
KOTA KINABALU: Sabah has not lost its focus on obtaining the 40% tax revenue due to the state under the Federal Constitution.
“The state government will never compromise or surrender its rights under the Federal Constitution. 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,” said State Finance Minister Datuk Seri Masidi Manjun here yesterday.
“This absolute position also 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 expressly provides for a formula and review of the 40% net revenue entitlement that the Federation derives from Sabah.
“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,” he said.
Masidi was responding to claims by opposition Parti Warisan that the Sabah government had been misleading the people over the 40% tax revenue when the state signed a special RM125.6mil federal grant last year.
Warisan supreme council member Assafal Alian had alleged that the legal effect of the grant which was gazetted would affect Sabah’s constitutional guarantee of the 40% payment.
Towards this end, Masidi said the receipt of the interim payment of RM125.6mil, which was increased from RM26.7mil, was stated to be strictly without prejudice to all the state’s rights.
“Specifically, subject to the state’s right to rely on the existing formula and an agreement to continue further negotiations with the Federal Government.
“Due to the differences in interpretation and quantum then we agreed to disagree.
“As a further condition to the interim arrangement, the state expressly reserved the right to claim what is due for the non-fulfilment of the Federal Government to conduct a constitutional review every five years since 1974,” he said.
If both parties were unable to come to an agreement after negotiations, Masidi said the matter would be referred to an independent assessor as provided in Article 112D (6) of the Federal Constitution.
“The state government,” he said, “have always maintained that this constitutional arrangement for Sabah is explicitly stated in the Report of the Inter-Governmental Committee dated Feb 27, 1963 and is an agreed revenue sharing arrangement between the state of Sabah and the Federation which led to the formation of Malaysia in 1963.”
“No one can deny this historical fact. The state government will always uphold the state’s constitutional rights.
“The supreme law of the land must be respected and we are confident that the Federal Government and the state government will arrive at a just, fair and equitable solution to this long outstanding issue as soon as possible,” said Masidi.
