Appeals Court to hear govt’s motion on 40% grant revenue
KOTA KINABALU: The Court of Appeal will hear today the Federal Government’s appeal against a High Court decision granting leave to the Sabah Law Society (SLS) to seek a judicial review on the state’s right to 40% of grant revenue.

The Federal Attorney General is challenging the Kota Kinabalu High Court’s decision to grant SLS the right (locus standi) to do so against both the federal and Sabah governments in the lawsuit, which seeks to compel the return of 40% of federal revenue earned from Sabah.

On Nov 11, 2022, Justice Ismail Brahim granted SLS’ application for leave for the judicial review. The judge ruled that SLS had the locus standi to apply for judicial review because it was a public interest litigation.

Justice Ismail also found that SLS’ case concerned a breach of constitutional duty to pay the 40% entitlement for the “Lost Years” (1974–2021), which was “justiciable” (a matter that can be decided by legal principles by a court).

The AG is also appealing to set aside the High Court ruling granting SLS locus standi and to impugn the decision as “non justiciable”.

The AG had obtained a stay order to stop the High Court from hearing the merits of the case pending the appeal, which was initially scheduled for last Sept 14 and adjourned to today.

SLS objected to the adjournment and presented a Certificate of Urgency to the court, demonstrating that the case held significant public interest and warranted hearing.

The controversial case is being keenly followed across Sabah amid the state government’s talks with the Federal Government for the return of 40% of all revenue earned from the state as enshrined under the Federal Constitution.

SLS’ immediate past president Datuk Roger Chin said the body hoped to secure recognition and fulfilment of the 40% entitlement enshrined in Articles 112C and 112D of the Federal Constitution, alongside Section 2 of Part IV of the Tenth Schedule.

He said the federal and state governments had in 2022 and 2023 conducted a review under Article 112D to determine the entitlement for the period 2022 to 2026/2027.

“The second mandatory review, originally due by 1974, was only undertaken in 2022, leaving 48 years unaccounted for – a period referred to as ‘the Lost Years’ by many Sabahans.

“We hope that the court will give a definitive declaration that the 40% entitlement, as per the true intent of the constitutional provisions, be interpreted and delivered faithfully, upholding the spirit of the Federal Constitution,” he said.
Sabah & Sarawak
KOTA KINABALU: The Court of Appeal will hear today the Federal Government’s appeal against a High Court decision granting leave to the Sabah Law Society (SLS) to seek a judicial review on the state’s right to 40% of grant revenue.