Special grant: Sabah prepared to commence further negotiation

The Sabah government is prepared to commence further negotiations over the special grant to which the state is entitled in line with Articles 112C and 112D of the Federal Constitution, said Sabah state attorney-general Brenndon Keith Soh.

He said this in light of the Finance Ministry's response to a query in Parliament on July 16 that the government, through the Malaysia Agreement 1963 Implementation Action Council Technical Committee (JKMTPMA63), is committed to discussing a new special grant rate for Sabah.

He said Sabah 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 RM125.6 million in 2022 and RM300 million last year.

“As 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 said in a statement today.

He said as part of the interim arrangement agreed upon 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.

Financial data

Brenndon (above) said the essential financial data required involves the actual revenue obtained by the federal government from taxes, customs duties, licences, fees and fines, among others, in Sabah.

Internally, he said the Sabah State Special Grant Review Committee was formed consisting of senior members of the civil service, including the state Attorney-General’s Chambers, state Finance Ministry, 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 JTMTPMA63 on May 28, 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,” he said.

The state attorney-general said the JTMTPMA63 was informed by the Finance Ministry that the negotiations would be held separately between the parties in June 2024.

According to Brenndon, the Sabah State Special Grant Review Committee had tirelessly and diligently prepared an updated official claim in anticipation of the negotiations to be held.

“That claim was sent to the Federal Ministry of Finance on June 18, 2024, with a further letter on July 11, 2024. To date, there has not been a response in writing,” he said.

- Bernama

Sabah revenue: AG turns to apex court to halt challenge

Bintulu Port bills' approval reflects MA63 spirit - Fadillah

MA63: Cabinet to resolve differing jurisdictions in federal, Sabah, S'wak

Close ties with federal govt crucial for S'wak's development: Wan Junaidi