State Government committed to pursuing 40pc revenue, says State AG
Published on: Monday, August 05, 2024
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Soh said despite time and data constraints, the State Committee worked tirelessly and diligently to prepare an updated official claim in anticipation of negotiations.
STATE Attorney General Datuk Brenndon Keith Soh said the Sabah Government had been both professional and dedicated to pursuing the 40 per cent net revenue special grant under Articles 112C and 112D of the Federal Constitution.
He said an initial claim in writing on June 10, 2022, was extended to the Federal Finance Ministry in accordance with the constitutional formula prescribed in Part IV of the Tenth Schedule of the Federal Constitution.
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This was in anticipation of negotiations between the respective governments, adding the State has always been ready.
“As part of the interim arrangement agreed between both 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.
“The essential data required involves the actual revenue obtained by the Federal Government from taxes, customs duties, licences, fees and fines amongst others in Sabah (financial data).
“Internally, the Sabah State Special Grant Review Committee (the State Committee) was formed consisting of senior members of the civil service including the State Attorney General Chambers, Ministry of Finance, Treasury Department and State Economic Planning Unit together with independent professional advice.
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“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 Malaysia Agreement 1963 Implementation Action Council Technical Committee (JTMTPMA63) on May 28 2024.
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“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.
“In response, the JTMTPMA63 was informed by the Federal Finance Ministry that the negotiations would be held separately between the parties in June 2024,” he said in a statement on July 26.
Soh said despite time and data constraints, the State Committee worked tirelessly and diligently to prepare an updated official claim in anticipation of negotiations.
That claim was sent to the Federal Finance Ministry on June 18 2024 with a further letter on July 11 2024.
“To date, there has not been a response in writing,” he said.
Nevertheless, Soh said the Federal Finance Ministry on July 16 2024 confirmed in Parliament that the Federal is committed to discussing a new special grant rate for Sabah.
“We therefore remain prepared, ready and able to commence further negotiations of the special grant due.
“It is essential to recognise that prior to this, the State 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 in 2023.
“As evidently stated and provided in Article 112D (6) of the Federal Constitution, should both the Federal and State Governments not 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.
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