The Kota Kinabalu High Court this morning ruled that the federal government acted unlawfully by failing to honour Sabah’s 40% share of federal revenue for nearly five decades.
High Court judge Celestina Stuel Galid also declared the special grant arrangements made by both the federal and state governments “unlawful, ultra vires, and irrational”, Malaysiakini reported.
The grant arrangement, she added, had also breached the Federal Constitution.
“It is unlawful on the part of the federation to make the intended special grants under the 10th Schedule,” she was quoted as saying.
The revenue sharing formula has been a contentious issue for decades. Sabah politicians have called for the federal government to honour the state’s entitlement to 40% of the amount which exceeds the net revenue derived in 1963.
Use of the formula has been suspended since 1974, with the federal government paying increased special grants to Sabah and Sarawak.
MORE TO COME
