KOTA KINABALU: The Sabah Law Society’s (SLS) case on Sabah’s 40% revenue entitlement will be heard by the High Court of Sabah and Sarawak from 9am on July 7.
Former SLS president Datuk Roger Chin urged the public to attend and observe the proceedings, to be held in open court, describing it as a rare opportunity to witness constitutional proceedings of major public significance.
The case centres on whether or not the Federal Government failed in its constitutional duty to review and pay Sabah its rightful 40% share of net revenue collected from the state.
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The review was supposed to take place in 1974, but allegedly only happened in 2022.
“This is not a political matter but a constitutional obligation. It is a test of constitutional fidelity and federalism, and every Sabahan has a stake in the outcome,” Chin said in a statement on Tuesday (May 20).
The SLS argues that Articles 112C and 112D of the Federal Constitution, along with Part IV of the Tenth Schedule, entitle Sabah to receive 40% of the net revenue collected by the Federal Government from the state, over and above what was collected in 1963.
They contend that the Federal Government was required to review this entitlement by 1974, but no such review occurred until almost five decades later.
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SLS says the prolonged delay and lack of payments during what it called the "Lost Years" are in breach of the Constitution.
The Federal Government argues that the 40% formula was replaced by a fixed annual grant of RM26.7mil following a review in 1969.
It also said the continued payments and negotiations over the years were a fulfilment of its constitutional duties.
Chin stressed that the Sabah government, meanwhile, acknowledges that no review occurred from 1974 to 2021, although it had consistently pushed for one.
“The Sabah government said it repeatedly requested a review and agreed to interim arrangements in 2022 and 2023. These agreements do not negate Sabah’s right to the 40% formula or claims to arrears,” said Chin.
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He added that the state also supports the possible appointment of an independent assessor, as provided under Article 112D(6) of the Constitution.
“This case goes beyond financial claims. It is about whether the Federal Government has honoured the Constitution, and whether Sabah is being treated fairly under Malaysia’s federal system,” Chin added.
To help the public understand the context of the case, the SLS will host a town hall session at its secretariat here at 3pm on June 20.
Seating is limited and available on a first-come, first-served basis. Interested individuals can register by calling 088-232662.
“This case belongs to the people of Sabah,” said Chin, encouraging members of the public, whether students, professionals or concerned citizens, to attend and observe the proceedings.
On Oct 17, the Federal Court dismissed the Attorney General's bid to stop SLS from being granted leave to pursue the case in the Kota Kinabalu High Court.
