KOTA KINABALU: Sabah will oppose the federal Attorney General’s application for a stay of the Oct 17 High Court ruling requiring the federal government to settle with the state its 40% “lost years” revenue entitlement from 1974 to 2021.
State Attorney General Datuk Brenndon Keith Soh (pic) said the state government has been cooperating and working with the federal government following the judgment, and there has been no delay in complying with the Kota Kinabalu High Court order.
The High Court had directed the federal government to review Sabah’s entitlement to the 40% special grant within the constitutional framework for the “lost years”.
The court also ordered both governments to reach an agreement within 180 days, by April 15, 2026.
Soh said that since the delivery of the judgment, the state government has remained firmly committed to complying with both the letter and spirit of the court’s decision.
He said the state has consistently participated in engagement sessions with the relevant federal authorities, with several meetings and technical discussions held to facilitate the exchange of information, verification of data and consideration of possible methodologies for determining the quantum of the 40% special grant.
“The state has approached these discussions constructively, transparently and in good faith, with the objective of achieving a fair, principled and mutually acceptable resolution within the timeframe set by the court.
“In this regard, the state government has also put forward proposals and working frameworks to assist the parties in progressing towards an agreement.
“It is therefore the state government’s considered position that there has been no delay or lack of cooperation on the part of the state in the implementation of the High Court order,” he said in a statement here on Thursday (March 12) night.
On the contrary, Soh said the state has taken active and continuous steps to ensure that the court-mandated process proceeds in an orderly and productive manner.
“The state government, therefore, remains ready, willing and able to continue engaging with the federal government in a constructive manner with a view to reaching a mutually agreed outcome consistent with the constitutional provisions governing the special grant and the terms of the High Court’s order.
“In this regard, it should be reiterated that Article 112D(6) of the Federal Constitution provides a clear constitutional mechanism should the parties ultimately be unable to reach agreement,” he said.
He said the provision requires the appointment of an independent assessor whose recommendations “shall be binding on the governments concerned and shall be given effect as if they were the agreements of those governments”.
“This constitutional safeguard ensures that the review process contemplated under the Federal Constitution can be concluded in an orderly manner even in the absence of a mutually agreed settlement,” Soh added.
In light of the ongoing discussions and the approaching timeline set by the court, he said both parties should continue focusing on fulfilling the terms of the High Court order and work collaboratively towards an equitable resolution within the prescribed timeframe.
He added that the State Attorney General’s Chambers will take the necessary legal steps to safeguard Sabah’s rights and interests while supporting a process consistent with the rule of law, constitutional principles and cooperative engagement between the Federal and State governments.
Political parties across the political divide in Sabah have also called on the federal government not to proceed with the stay application, which was filed on March 3.
