12 PH reps sue Sabah, federal govts over state’s revenue entitlement

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The Sabahan PH lawmakers claimed the recent revelation by the Finance Minister in Parliament that Sabah’s 40 per cent entitlement was no longer applicable was clearly a breach of the Malaysia Agreement 1963 (MA63). — Bernama photo

KOTA KINABALU (June 3): Twelve Pakatan Harapan (PH) Sabah elected representatives are suing the state and federal governments over Sabah’s entitlement to revenue derived from the state.

The lawmakers, from both Parliament and the Sabah State Legislative Assembly, are seeking a declaration on whether Article 112C and Section 2(1) of Part IV of the Tenth Schedule of the Federal Constitution still apply and are enforceable.

In a joint statement today, the Sabahan PH lawmakers said the recent revelation by the Finance Minister in Parliament that Sabah’s 40 per cent entitlement was no longer applicable was clearly a breach of the Malaysia Agreement 1963 (MA63).

“We can no longer ignore the continuous infringement of the constitutional right of the people of Sabah,” the elected representatives said in a statement.

They said Sabah agreed to the formation of Malaysia based on many special terms that were not available to the other 11 states in the Federation of Malaya.

They pointed out that this special position was due to many reasons and one of which was the under-development of Sabah at that time.

“Yet, after almost 59 years of Malaysia, it was reported under the Federal Government own 12th Malaysia Plan (2021-2025) that out of the 10 most poorest districts in Malaysia, eight of them are in Sabah.

“It was further reported that in 2019, the incidence of absolute poverty in Sabah was 19.5 per cent and 9 per cent in Sarawak, which were above the national level of 5.6 per cent,” said the PH Sabah lawmakers.

They further added that if Sabah’s 40 per cent entitlement had been respected and delivered, each Sabahan today would be experiencing better quality of life economically and socially.

“It is time that this continuous deprivation and infringement of our constitutional right be brought to the courts to be resolved finally,” said the elected representatives.

The 12 PH Sabah lawmakers involved in the suit are Christina Liew (Tawau MP and Api-Api assemblywoman), Peto Galim (Inanam assemblyman), Ewon Benedict (Kadamaian assemblyman), Frankie Poon (Tanjung Papat assemblyman), Jannie Lasimbang (Kepayan assemblywoman), Phoong Jin Zhe (Luyang assemblyman), Tan Lee Fatt (Likas assemblyman), Awang Husaini (Putatan MP), Chan Foong Hin (Kota Kinabalu MP), Vivian Wong (Sandakan MP), Noorita Sual (Tenom MP), and Madius Tangau (Tuaran MP).

It is understood that Section 2(1) of Part IV of the Tenth Schedule states that Sabah is entitled to an annual grant amounting to “two-fifths” of the net revenue derived by the Federation of Malaysia from Sabah.

The Sabahan lawmakers are also wondering whether the federal government’s review of the grant in March this year under Article 112D of the Federal Constitution was unconstitutional, null, and void and of no effect.

In March, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz told Parliament Sabah’s 40 per cent revenue sharing no longer applied as the federal government could not afford it.

The federal government had thus announced to increase its annual grant to Sabah, from RM26.7 million to RM125.6 million for this year.

The new grant was reportedly determined following a review under Article 112D of the Federal Constitution, between the Finance Ministry and the Sabah state government on Feb 14 this year.