The federal government will not appeal the High Court’s decision upholding Sabah’s right to 40% of federal revenue from the state.
The Attorney-General’s Chambers announced this after a special Cabinet meeting today to review the Kota Kinabalu High Court’s Oct 17 ruling.
The decision stemmed from a judicial review by the Sabah Law Society challenging Putrajaya’s failure to fulfil the entitlement over nearly five decades.
In a statement, the AGC affirmed respect for the special grant principle in the Federal Constitution.
“The federal government will therefore not appeal the special grant based on the 40% revenue and will begin negotiations with the Sabah state government immediately,” it said.
The AGC advised the Cabinet on flaws in the judgment, including claims of power abuse and constitutional breaches by both governments, possibly since 1974.
It highlighted criticism of the post-2021 review as unlawful, irrational, procedurally improper, and disproportionate.
“The federal government intends to appeal these defects in the court’s judgment.”
The Oct 17 ruling ordered a joint review to calculate Sabah’s 40% share for each year from 1974 to 2021.
Justice Celestina Stuel Galid declared existing special grant arrangements unconstitutional.
The review must start within 90 days and finish within 180 days.
The AGC had earlier planned to study the full judgment before deciding.
Prime Minister Anwar Ibrahim said yesterday he was open to skipping an appeal, pending Cabinet input.
The matter prompted Upko president Ewon Benedick to resign as entrepreneur development and cooperatives minister over the AGC’s initial position.
Anwar called the resignation “premature”, as Ewon knew no final decision had been reached.
