40% revenue share is the law, say Sabah leaders

A group of Sabah leaders says that, under the federal constitution, Sabah is entitled to 40% of revenues collected from the state. (Bernama pic)

KOTA KINABALU: A group of Sabah leaders today demanded that Putrajaya honour the federal constitution and pay Sabah the 40% revenue entitlement stipulated in the constitution.

The demand was made in a joint statement issued by Kimanis MP Anifah Aman, Keningau MP Jeffrey Kitingan, Tamparuli assemblyman Jahid Jahim, Kiulu assemblyman Joniston Bangkuai, former Sabah Chief Minister Yong Teck Lee, former Tuaran MP Wilfred Bumburing and former Sabah MCA deputy chairman Francis Goh.

They said their demand was based on a constitutional requirement under Article 112C and Part IV of the 10th schedule of the constitution.

“One of the most important provisions our forefathers agreed at the formation of Malaysia in 1963 was that Sabah shall be entitled to 40% of all state revenue collected derived from Sabah,” they said..

“Without this provision Sabah would not have agreed to the formation of Malaysia in 1963.”

They said Putraja had consistently ignored repeated calls from Sabahans for the 40% rule to be followed. They said the action was in breach of the constitution and the Malaysia Agreement 1963.

“We demand once again that the Federal Government to implement Article 112C without further delay and excuses for the benefit of the people of Sabah,” they said.

Separately, Sarawak DAP chairman Chong Chieng Jen told party members at the state conventon today that Putrajaya had not finalised the formula for the 40% revenue entitlement for Sabah and Sarawak . Instead the federal government decided to double the special grants to the two states,, he said.

Sabah has been receiving a fixed amount of RM26.7 million every year since 1974, without any further reviews after 1969, the Sabah leaders said.

“Despite Pakatan Harapan’s promise to return 50% of all revenues collected from Sabah, the PH government continued with the RM26.7 million payment for 2018 and 2019,” they said.

The group said the increase in the special grant would be paid in 2020, involving what they called “a paltry” sum of RM53.4 million.

“This increase to RM 53.4 million is unlawful and in breach of the Constitution.

The group urged the state government to abide by the federal constitution and not agree to accept the RM53.4 million “when billions are legitimately and constitutionally due to Sabah based on the actual 40%”.

The group said the state government must establish a mechanism to collect the revenues derived from Sabah and remit the balance 60% to the federal Treasury to ensure that Sabah collects every cent of its 40% entitlement.

They said the government cannot allow continued neglect and contravention of the constitution while Sabahans suffer the consequences. - FMT