Kota Kinabalu: A Sabah deputy chief minister’s suggestion that the state’s 40% revenue share could be paid in a different manner is “dangerous”, says Upko president Wilfred Madius Tangau.
The federal government, Tangau said, is obliged to pay the special grant as it had been stipulated in the Federal Constitution.
“Is he implying that we should amend the Federal Constitution?” he asked, referring to Bung Moktar Radin who made the suggestion.
“It is very clear that under the constitution, two-fifth of the net federal revenue collected in Sabah must be returned to the state,” he told reporters here.
Tangau went on to remind Bung that Pakatan Harapan assemblymen from Sabah brought the matter to court after the finance ministry said it could not be enforced.
On June 3, the 13 assemblymen sought a declaration over the state’s 40% share of revenue under the Malaysia Agreement 1963 (MA63) at the High Court.
Tangau said while there was a provision under Article 112D to review the payment, PH interpreted it as a means to negotiate the form of payment, which could be paid in kind, but not to do away with the 40% share.
“For example, the Sabah government was supposed to own 25% share in the Sabah Ammonia and Urea (Samur) project which is equivalent to RM500 million.
“If the state government is unable to raise that kind of money, the federal government could substitute some of the 40% by acquiring the shares on the state government’s behalf. This is how we interpret Article 112D.”
Warisan deputy president Darell Leiking also disagreed with Bung because the 40% revenue rights had been promised to Sabah before Malaysia was formed.
“If they cannot even fulfil their promise when Malaysia was formed in 1963, how do you think we will be able to review a new figure when the agreement between the founding fathers was never honoured?”
Yesterday, Bung said there must be another mechanism that would satisfy both sides if the whole 40% revenue share could not be delivered now.
“It is not that I don’t agree with the MA63, but I think we must start small. Since 1963, it seems that it is very difficult for them to give even 1%, what more 40%.”
