KOTA KINABALU: Sabah's 40% revenue rights cannot be brushed away under federal expenditures to the state, says Datuk Seri Dr Ronald Kiandee.
The Bersatu vice-president said that Sabah's revenue rights was a mandatory grant of 40% under Article 112C of the Constitution and the recent statement by Prime Minister Datuk Seri Anwar Ibrahim that the Federal Government had allocated RM16bil to Sabah does not answer the state's revenue rights.
"The Prime Minister's statement does not actually answer the issue that needs to be answered, which is the mandatory grant of 40% under Article 112C of the Constitution," said the Beluaran MP in a statement here on Wednesday (Aug 7).
He was referring to the Prime Minister's disclosure on Sunday (Aug 4) that the federal government had allocated RM16bil to Sabah and revealed that the Federal Government earned RM10.2bil in revenue from the state in 2023.
"The amount mentioned is for the total allocation to Sabah and not just for development.
"The Prime Minister in the speech also stated that the allocation of RM16bil includes the provision of schools, education for children, as well as border security, which in that case, is indeed the responsibility of the Federation under the Ninth Schedule of the Federal Constitution.
"The Prime Minister's statement actually overlooks that the amount of development expenditure allocated to Sabah cannot be equated with the normal mandatory allocation to other states (apart from Sarawak).
"The value of RM16bil should be given to Sabah, but the mandatory grant of 40% under Article 112C is still fixed and must be given to Sabah in accordance with the requirements of the Federal Constitution," he said.
"The Federal Government and Sabah need to always uphold and comply with the Federal Constitution to guarantee a Federation that continues to be fair, mutually beneficial in addition to safeguarding the interests of the Malaysian nation," Kiandee.
Kiandee said that every state in the Federation has the mandatory right to financial allocations under Article 109, while for Sabah and Sarawak there is an additional mandatory provision which is under Article 112C of the Federal Constitution.
He said that Article 109 of the Constitution states, among other things, that mandatory grants to the states were Capitation Grant under Article 109(1)(a), State Road Maintenance Grant (MARRIS) under Article 109(1)(b), Grants Based on the Level of Economic Development, Infrastructure and Living Well-Being under Article 109(6) of the Federal Constitution.
Furthermore, he said the granting of financial allocations under Article 109 of the Federal Constitution must also comply with the requirements under Parts I, II and III of the Tenth Schedule of the Federal Constitution.
