KOTA KINABALU: The High Court here found that the Federal Government has breached the fundamental rights of the State Government of Sabah and its people by failing to honour the 40% net revenue entitlement.
Datuk Celestina Stuel Galid made the decision on Friday (Oct 17) after hearing the submissions from all parties.
On Friday, the High Court declared that the failure of the first respondent (Federal Government) to hold the second review in 1974 with the second respondent (Sabah government) is 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.
Counsels for the federal government are expected to appeal this decision.
