Dispute over 40pc special grant: Court grants Federal Government’s application to stay SLS review
Published on: Friday, February 03, 2023
The SLS had filed the judicial review following an announcement by the Federal Government on April 14, 2022 on an agreement reached between the Federal and State governments.
Kota Kinabalu: The High Court had granted the Federal Government’s application to stay (suspend) Sabah Law Society (SLS)’s judicial review proceedings on dispute over the 40 per cent special grant that Sabah is entitled to under the Federal Constitution.Judge Datuk Ismail Brahim made the order via Zoom on Thursday.
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On June 8, 2022, the SLS obtained leave for a judicial review against the Federal Government’s constitutional duty to pay the 40 per cent special grant due to Sabah under the Federal Constitution.
However, the Federal Attorney General had appealed the High Court’s decision on Nov 11, 2022 to allow SLS to proceed with their application for judicial review in respect of Sabah’s 40 per cent entitlement.
The SLS had filed the judicial review following an announcement by the Federal Government on April 14, 2022 on an agreement reached between the Federal and State governments.
SLS is seeking a declaration, among others, that the Federal Government’s failure to hold a second review in 1974 with the State Government was a breach and contravention of its constitutional duty stipulated under Article 112D, Clauses (1), (3) and (4) of the Federal Constitution.
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It said the 40 per cent entitlement remained due and payable by the Federal Government to the State Government for each consecutive financial year for the period of 1974 to 2021, in which a failure to pay the entitlement was a breach of the fundamental right to property of the Sabah government and ultimately, of the people of Sabah as enshrined under Article 13 of the Federal Constitution.
SLS also sought an order of mandamus directed to the respondent to hold another review with the state government under the provisions of Article 112D of the Federal Constitution, to give effect to the payment of the 40 per cent entitlement for each consecutive financial year from 1974 to 2021 within 30 days, and to reach a decision within 90 days from the date of the order, and that the respondent pays the entitlement to the State Government or as constitutional damages for breach of Article 13 of the Federal Constitution, or both.
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