KOTA KINABALU: The High Court of Sabah and Sarawak has upheld what the state has long fought for - its constitutional right to 40% of federal revenue, says Datuk Roger Chin.
The former Sabah Law Society president said that with the ruling made on Friday (Oct 17), the Federal Government had breached the fundamental rights of the state of Sabah and its people for failing to honour the 40% entitlement, Sabah’s rights have been vindicated and justice served at last.
“While it remains their (the Federal Government's) right to appeal, doing so would betray sincerity, especially when successive governments, including the present one, have pledged to honour the Malaysia Agreement 1963 (MA63) yet failed to resolve the 40% entitlement,” Chin said.
He said that this historic judgement confirmed that Sabah’s 40% special grant was not a privilege to be negotiated, but a constitutional right owed since 1963.
“This ruling is more than numbers. It means schools for our children, hospitals for our families, roads that connect our villages and opportunities worthy of Sabahans. It is about dignity, fairness, and respect for Sabah’s rightful place in Malaysia,” he said.
Chin said this victory recognised the vital role of the Sabah government, which has continued to uphold and assert the state’s constitutional rights.
The state’s efforts in clarifying the historical records, including the share of growth of federal revenue derived from Sabah from 1964 to 1968, have been instrumental in reaffirming that the intent and effect of Articles 112C and 112D remain unchanged, he said.
The acceptance of the interim payments was without prejudice to the state's constitutional rights, he said.
The court’s decision confirms that the 1969 Order to vary did not extinguish or alter the original formula, but that the constitutional mechanism guaranteeing Sabah’s 40% share has always remained intact, said Chin.
He urged the Federal Government to meet with the Sabah government within 90 days and reach an agreement within 180 days, applying the 40% formula guaranteed by the Constitution.
The arrears due from 1974 to 2021 have been recognised as a continuing debt to Sabah, and payment must follow, whether through direct settlement or constitutional damages, he said.
“The Court has also ruled that Sabah is entitled to what was denied for almost fifty years, from 1974 to 2021,” he said.
“This money must be paid to the state, either directly or through compensation,” Chin said.
“The law is clear, the formula must be followed, and Sabah must finally receive its rightful share,” he said.
Earlier Friday, High Court Judge Datuk Celestina Stuel Galid declared the failure of the first respondent (Federal Government) to hold the second review in the year 1974 with the second respondent (Sabah government) a breach and contravention of its constitutional duty stipulated under Article 112D, Clauses (1), (3) and (4) of the Federal Constitution.
This means that the 40% entitlement remains due and payable by the federation to the state of Sabah for each consecutive financial year for the period from the year 1974 to the year 2021.
