Independent arbiter looms over grant dispute


KOTA KINABALU: An independent assessor will be appointed by the Sabah government if negotiations with the Federal Government fail to determine the final amount of the state’s constitutional special grant.

State Assistant Finance Minister Datuk Mohd Ishak Ayub said Sabah maintained its position that its constitutional entitlement to 40% of federal revenue derived from the state must be fully implemented.

He said the state government would continue efforts to reach an agreement with the Federal Government through negotiations.

“If an agreement on the final amount of the special grant cannot be reached through negotiations, the Sabah government believes an independent assessor should be appointed,” he told the state legislative assembly sitting yesterday.

Mohd Ishak was responding to questions from Tamparuli assemblyman Datuk Seri Wilfred Madius Tangau, Senallang assemblyman Datuk Seri Mohd Shafie Apdal and Sekong assemblyman Alias Sani.

He also told the House that Sabah received RM600mil from the Federal Government on June 12, as part of the RM1.5bil interim special grant announced by Prime Minister Datuk Seri Anwar Ibrahim on May 30.

“The Sabah government stresses that its acceptance of the RM1.5bil special grant is only an interim arrangement and cannot be interpreted as an agreement on the final amount of the special grant,” he said.

He added that the state had requested that the remaining RM900mil be paid within this year.

“Accepting the interim payment was without prejudice to Sabah’s constitutional rights under Articles 112C and 112D, and will not affect ongoing negotiations on implementing the 40% revenue formula,” he said.

Meanwhile, state Finance Minister Datuk Seri Masidi Manjun said the grant would not be apportioned by district.

He was responding to a supplementary question from Jamil Hamzah (Warisan–Bugaya), who asked how the funds would be used and whether they would be distributed among districts or allocated to pressing needs such as water supply, electricity and road infrastructure.

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