Nation

Sabah considers independent evaluators for revenue rights claim

KOTA KINABALU: The Sabah government is considering appointing independent evaluators to demand its revenue rights from the federal government based on its own calculations.

State Finance Minister Datuk Seri Masidi Manjun said such actions would be taken in the absence of any concrete decision from the federal government on the demand.

The Sabah government has made a 40 per cent revenue claim from federal government.

"We have been given a year from July last year to discuss (about it), we take that as a promise.

"If after July there is still no agreement between state and federal, it will be up to us to take the option in appointing independent evaluators.

"After July, we will demand (the revenue rights) by phases without complete data from the federal government.

"We will make our assumption based on data announced by federal government agencies and make the calculation on how much we should claim," he replied to Datuk Seri Bung Moktar's (Umno-Lamag) supplementary question during state assembly question on whether there is a need to appoint independent evaluators.

Masidi also said that Sabah had sent requests eight times to the federal government but had yet to get any proper data.

Earlier, assistant Finance Minister Tan Lee Fatt said Sabah had submitted to the Federal Government at that time through the Minister of Finance Malaysia the calculation of Special Grant for the year 2021 using the formula in Article 112C and Part IV of the Tenth Schedule of the Federal Constitution.

"Under the current Federal Government, through the Technical Committee Meeting of the Implementation of the Malaysia Agreement 1963 (MTPMA63) No. 01/2023 held on July 18, 2023, the decision reached is that both the Federal Government and the State Government of Sabah will continue negotiations to finalise the Special Grant formula.

"Furthermore, the State Government has established the Special Grant Review Committee for Sabah to review and finalise the value of the Special Grant. This committee is chaired jointly by the Attorney General of Sabah and the Permanent Secretary of the Ministry of Finance of Sabah.

"The committee members also include Legal Advisors to the Chief Minister, Director of the State Economic Planning Unit, State Treasurer, and an Independent Advisor," he said.

Tan said the committee would review the original calculation formula of the special grant and the term net revenue.

"Since negotiations on this Special Grant amount began, the Federal Government has paid RM125.6 million in 2022 and subsequently RM300 million in 2023, which the State Government agreed to accept as interim settlements.

"I would like to remind that matters concerning this Special Grant are still in the negotiation process, and I am confident that the negotiations between the Federal and State Governments will yield the results we have long awaited for the benefit and welfare of the people of this state."

Most Popular
Related Article
Says Stories