KOTA KINABALU: The State and Federal government held their first meeting on Monday (Nov 17) to review Sabah’s 40% net revenue entitlement.
The meeting, held in response to a High Court decision mandating a review of the entitlement, was attended by State Secretary Datuk Seri Safar Untong for the state government and Datuk Johan Mahmood Marican, Treasury secretary-general, Finance Ministry.
A joint statement by Safar and Johan said the meeting also involved officials from the Attorney General’s Chambers, State Attorney General, State Finance Ministry and State Economic Planning Unit, among others.
Both parties agreed that the discussion is a constructive and efficient start towards reviewing Sabah’s special grant based on the 40% entitlement according to Article 112C and 112D of the Federal Constitution.
State representatives stressed their commitment to progressive discussions with mutual respect, understanding, data sharing and the financial information required.
Both sides also expressed confidence that the meeting is on the right track towards achieving an amicable solution for all.
On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government had failed to fulfil Sabah’s entitlement to 40% of federal revenue for the years 1974 to 2021 and ordered both governments to conduct a revenue review within 90 days.
The Federal Government has filed a partial appeal against part of the court’s judgment.
