KOTA KINABALU, Oct 17 — The Kota Kinabalu High Court has ruled that the federal government acted unlawfully by not fulfilling Sabah’s right to 40 per cent of federal revenue for nearly 50 years.

Delivering her judgment in open court, Judge Celestina Stuel Galid declared that the special grant arrangements between the federal and state governments were “unlawful, ultra vires, and irrational,” as they violated the Federal Constitution, Malaysiakini reported.

“It is unlawful on the part of the federation to make the intended special grants under the 10th Schedule,” Malaysiakini quoted her as saying.

The judge found that the Second and Third Review Orders issued by the federal and state governments were invalid, and ruled in favour of the Sabah Law Society’s (SLS) application.

In addition to this, the court issued a mandamus order, which compels Putrajaya to review the revenue allocation with the Sabah government. The court also ordered that an agreement be reached on Sabah’s 40 per cent share of federal revenue for each financial year from 1974 to 2021, with this process to be completed within 180 days.

The judicial review was initiated by the SLS in June 2022, when it sought permission to challenge the federal government’s failure to uphold Sabah’s rightful share of federal revenue as stipulated by the Federal Constitution.

 Malay Mail – Malaysia