Special panel on 40% claim


Full report later: Fadillah answering questions from reporters at Menara Kinabalu, Kota Kinabalu. — Bernama

Discussions start on mechanism for Sabah’s right to revenue

KOTA KINABALU: A special committee involving the federal and state governments has been set up to discuss the mechanism for Sabah’s 40% net revenue claim as outlined in the Malaysia Agreement 1963 (MA63).

Deputy Prime Minister Datuk Seri Fadillah Yusof, who disclosed this yesterday, said the committee would be co-chaired by Sabah State Secretary Datuk Seri Safar Untong and Treasury secretary-general Datuk Johan Mahmood Merican.

He said the committee will report to the MA63 Implement­ation Action Council Technical Committee (JKTMPMA63), which he chairs, but may also submit updates directly to the Cabinet on its discussions and proposed mechanisms.

Fadillah said the time frame for discussions was very short, with negotiations having started yesterday after the committee was formed.

“If possible, they will detail the implementation (process).

“I’m waiting for the report and the outcome of the discussions.

“It is important to form the committee and provide recommendations to the government ... we’ll wait for the full report later,” he told reporters at Menara Kinabalu yesterday, Bernama reported.

Fadillah earlier held a meeting with caretaker Chief Minister Datuk Seri Hajiji Noor.

Safar, Johan and Sabah Attorney General Datuk Brenndon Keith Soh were also present.

On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government had acted unlawfully and beyond its constitutional powers when it failed to fulfil Sabah’s right to 40% of the federal net revenue derived from the state for over four decades.

The court also ordered a review to be carried out within 90 days, while a mutual agreement between the two governments must be reached within 180 days from the date of the order on Sabah’s claim to the special 40% entitlement from 1974 to 2021.

Fadillah said the special committee would discuss, among other matters, the terms of reference for implementing the claim, adding that this would be further discussed with the new state government to be formed after the 17th Sabah election on Nov 29.

“The Federal Government has already decided it will not appeal the 40% claim, so the Cabinet has decided to hold discussions (with the state government).

“As there is currently only a caretaker government, the priority for now is to initiate preliminary discussions first,” he added.

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Fadillah Yusof , MA63 , Sabah , 40% net revenue

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