SPECIAL GRANT TALKS PROVIDE STRONG PLATFORM TO RESOLVE SABAH’S 40 PCT CLAIM

KOTA KINABALU, Nov 17 (Bernama) -- The federal and Sabah governments are confident that the meeting of the Special Grant Negotiation Committee provides a strong platform for resolving Sabah’s claim to 40 per cent of revenue from the state, as provided for under the Malaysia Agreement 1963 (MA63).

In a joint statement today, the federal and Sabah governments said the inaugural meeting of the officer-level Special Grant Negotiation Committee was held today.

According to the statement, the meeting was held to review the value of Sabah’s Special Grant in line with Articles 112C and 112D of the Federal Constitution following a High Court order on Oct 17.

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The statement said representatives of both sides reaffirmed their commitment to conducting discussions in a progressive manner and in a spirit of cooperation, mutual respect and understanding, including sharing the necessary financial data and information.

“Both parties agreed that these discussions mark an effective and constructive start, with a shared understanding that the review of Sabah’s Special Grant will be based on the formula of 40 per cent of the federal net revenue (in Sabah),” the statement said.

The committee meeting was co-chaired by Sabah State Secretary Datuk Seri Safar Untong and federal Treasury secretary-general Datuk Johan Mahmood Merican.

Those present included Sabah State Attorney-General Datuk Brenndon Keith Soh, National Budget director Datuk Seri Ab Rahim Ab Rahman, Attorney-General’s Chambers Research Division head Marzaitul Azura Mokhtar and secretary of the Sabah and Sarawak Affairs Division, Prime Minister’s Department, Mohd Saiful Sungkih Abdullah.

On Oct 17, the Kota Kinabalu High Court ruled that the federal government had acted unlawfully and beyond its constitutional powers in failing to fulfil Sabah’s entitlement to 40 per cent of the federal net revenue in the state for nearly five decades.

The court also ordered a review to be conducted within 90 days, while a mutual agreement between both governments must be reached within 180 days from the date of the order regarding Sabah’s 40 per cent special grant claim for the period between 1974 and 2021.

-- BERNAMA