KOTA KINABALU: The Sabah Law Society’s (SLS) case on the state’s 40% revenue entitlement will be heard by the High Court of Sabah and Sarawak on July 7.
SLS immediate past president Datuk Roger Chin said the public is welcome to attend and observe the proceedings, describing it as a rare opportunity to witness constitutional proceedings of major significance.
The case centres on whether the Federal Government failed in its constitutional duty to review and pay Sabah its rightful 40% share of net revenue collected from the state, a review that was supposed to take place in 1974 but said to have only happened in 2022.
“This is not a political issue 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 yesterday.
He said the case offers Sabahans an opportunity to witness how a key issue concerning the state’s constitutional rights is deliberated on.
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.
It contends that the Federal Government was required to review this entitlement by 1974, but no such review occurred until almost five decades later.
The Federal Government, however, argues that the 40% formula was replaced by a fixed annual grant of RM26.7mil following a review in 1969, and that continued payments and negotiations over the years fulfil its constitutional duties.
Chin said the Sabah government acknowledged that no review occurred from 1974 to 2021 despite it consistently pushing for it.
To help the public understand the context of the case, SLS will host a townhall at its secretariat at 3pm on June 20. Those interested can register by calling 088-232 662.
