KOTA KINABALU: The Court of Appeal will hear on Thursday (Oct 29) the Federal Government's appeal over Sabah's constitutional 40% revenue entitlement, which was not reviewed for 48 years.
A three-member appellate panel will convene at the Kota Kinabalu Court Complex to hear Putrajaya's arguments against the High Court decision on Oct 17 last year specifically on the issue of the lost revenue.
In an unprecedented arrangement, the court has allowed up to 250 people to gather at its conference hall to follow the hearing live through a closed-circuit audiovisual transmission from the courtroom.
Putrajaya is appealing Justice Celestine Stuel Galid's ruling that it acted unlawfully and ultra vires (beyond its legal power) by failing to conduct a review and provide Sabah's 40% share of federal revenue for the years 1974 to 2021 under Article 112C and the 10th Schedule of the Federal Constitution.
The judicial review for the lost revenue was taken up by Sabah Law Society (SLS).
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The Federal Government filed an appeal against parts of the High Court's decision, specifically challenging the findings, orders and timelines concerning the 1974-2021 period, commonly referred to as "the lost years".
On April 6, the Court of Appeal granted the Federal Government a temporary stay on enforcement and negotiation of the 180-day timeline pending the outcome of the decision on its appeal.
The Federal Government is represented by senior counsel from the Attorney General's Chambers, while the SLS team is led by senior lawyers Dr David Fung Yin Kee and Jeyan Marimuttu.
Sabah Attorney General (AG) Datuk Brenndon Keith Soh is representing the state.
Former SLS president Datuk Roger Chin, who initiated the SLS judicial review for the revenue rights, said the hearing of the appeal need not necessarily have a judgment.
"We should not assume that a decision will be delivered immediately. The court may reserve judgment after hearing the parties," said Chin, a nominated assemblyman.
He said the main issue is the 48 lost years from 1974 to 2021, during which Sabah received RM26.7mil annually under the 1970 arrangement.
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"The court will consider whether the Federal Government fulfilled its constitutional duty to review Sabah's Special Grant for those years and whether it can rely on Article 112D(3) to say that the payments made under the old arrangement were sufficient to discharge its obligations.
"Importantly, the Federal Government is not appealing against the 40% formula itself or the need for a review under Article 112D.
"The dispute concerns the constitutional obligations relating to the lost years and the remedies ordered by the High Court," he explained.
He said the Court will also consider the Federal Government's other grounds of appeal, including jurisdiction and the relief granted.
Chin said the state government's position is that the High Court was correct in recognising Sabah's 40% constitutional entitlement for 1974 to 2021, and it is asking the Court of Appeal to uphold the relevant declarations and the order requiring a review of those years.
"The state maintains that the RM26.7mil paid annually during that period was an interim arrangement and did not mean Sabah had given up its right to claim the outstanding entitlement," he said, adding that Sabah also wants the increased interim grants under the subsequent Review Orders to remain in place rather than be quashed in their entirety.
Sabah Law Society (SLS) president Datuk Mohamed Nazim Maduarin said those planning to attend the Court of Appeal proceedings have been urged to observe registration requirements, court protocols and security arrangements.
He said the arrangements had been made in coordination with the court administration and relevant security authorities to facilitate public attendance while maintaining security.
The public is advised to arrive early and comply with instructions from court officials and security personnel throughout the registration and admission process, he added.
Registration will take place at a designated checkpoint near the court complex entrance, where attendees must scan a QR code provided and complete an online registration form.
Following verification, admission passes will be issued to eligible attendees.
Nazim urged attendees to dress appropriately, stressing that formal attire suitable for court proceedings is preferred while slippers, shorts and unsuitable casual clothing are not permitted.
SLS also said that photography, audio and video recording, livestreaming, and rebroadcasting of the proceedings are strictly prohibited, including through Facebook Live, TikTok Live, Instagram Live, YouTube Live, and other social media platforms.
The audiovisual feed provided in the conference hall is strictly for on-site viewing while food and drinks are also prohibited inside the hall, although drinking water will be available at the foyer outside.
