PUTRAJAYA: The Federal Government will not appeal the recent High Court ruling affirming Sabah’s right to 40% of net revenue derived from the state.
The decision not to appeal the ruling comes after a special Cabinet meeting to discuss the matter.
"As such, the Federal Government will commence the process of negotiations with the Sabah state government immediately," the Attorney General Chambers (AGC) said in a statement issued on Tuesday (Nov 11).
The AGC, however, disputed the court's reasoning behind the judgment with regard to the abuse of powers by the Federal Government and failing to keep obligations since 1974.
On Oct 17, the Kota Kinabalu High Court ruled in favor of the Sabah Law Society (SLS) judicial review.
The court decided that the Federal Government had acted unlawfully by failing to fulfill Sabah's constitutional entitlement to 40% of the net federal revenue derived from the state for nearly five decades.
The Federal Government must commence negotiations and carry out a review on the grant due for the lost years within 90 days of the court's decision.
The settlement repayments completed by 180 days there after.
On Monday (Nov 10), Datuk Ewon Benedick tendered his resignation as Entrepreneur Development and Cooperatives Minister.
Benedick recently said that he would quit the federal Cabinet if Putrajaya decides to appeal the October High Court ruling affirming Sabah’s right to 40% of net revenue derived from the state.
The Upko president said he would chair a special party supreme council meeting to discuss the "Sabah First" agenda, which has always been the basis of its political struggle.
In response, was reported to have said Ewon had acted too early in announcing his plan to resign from the Cabinet as no decision had been made in the matter.
The Prime Minister said a special Cabinet meeting would be held on Tuesday (Nov 11) to discuss the matter.
Meanwhile, former chief minister Datuk Seri Yong Teck Lee said that the Federal Government's decision is a victory for the people of Sabah.
The Sabah Progressive Party president said that the struggle must be continued so that the full amount of the 40% is paid back.
