KOTA KINABALU: The State Government of Sabah has at all material times been both professional and dedicated in the pursuit of the 40 per cent net revenue special grant under Article 112C and 112D of the Federal Constitution.
A statement released by Datuk Brenndon Keith Soh State Attorney General of Sabah, stated that the official record will show that in fact there was an initial claim in writing on 10th June 2022 that was extended to the Federal Ministry of Finance in accordance with the constitutional formula prescribed in Part IV of the Tenth Schedule of the Federal Constitution. This was in anticipation of the negotiation process being undertaken between the respective governments.
The State has always been ready in this respect.
According to him, as part of the interim arrangement agreed between the State and Federal Governments and towards ensuring a transparent and constructive negotiation between the parties, critical financial data involving the actual revenue derived from the State was supposed to be disclosed.
“The essential data required involves the actual revenue obtained by the Federal Government from taxes, customs duties, licences, fees and fines amongst others in Sabah (“financial data”).”
“Internally, the Sabah State Special Grant Review Committee (“the State Committee”) was formed consisting of senior members of the civil service including the State Attorney General Chambers, Ministry of Finance, Treasury Department and State Economic Planning Unit together with independent professional advice.”
“It has already been disclosed that since 2022, no less than eight official requests were made by the State to the Federal Government to obtain crucial financial data. Financial data was not shared and/or was incomplete. This issue was therefore brought up to the Malaysia Agreement 1963 Implementation Action Council Technical Committee (JTMTPMA63) on 28th May 2024.”
Instead of prolonging the matter, the State informed JTMTPMA63 that they would take the initiative to calculate the net revenue due based on the limited financial data available. In response, the JTMTPMA63 was informed by the Federal Ministry of Finance that the negotiations would be held separately between the parties in June 2024.
“Given the time and data constraints, the State Committee worked tirelessly and diligently to prepare an updated official claim in anticipation of the negotiations to be held. That claim was sent to the Federal Ministry of Finance on 18th June 2024 with a further letter on 11th July 2024. To date, there has not been a response in writing.”
“Notwithstanding this current quandary, the Federal Ministry of Finance had on 16th July 2024 confirmed in Parliament that the Federal Government is committed to discuss a new special grant rate for Sabah. We therefore remain prepared, ready and able to commence further negotiations of the special grant due.”
“It is essential to recognise that prior to this, the State has on an interim basis (without prejudice to its constitutional rights) obtained substantial increases in the special grant – with the Federal Government agreeing to pay the sum of RM125.6 million in 2022 and RM300 million in 2023.”
As evidently stated, and provided in Article 112D (6) of the Federal Constitution, should both the Federal and State Governments be unable to reach an agreement on any matter upon a review of the special grant, it shall be referred to an independent assessor whose recommendations shall be binding, he stated. -pr/BNN
