Sabah Pakatan withdraws revenue rights suit against Federal Govt

KOTA KINABALU: Sabah Pakatan Harapan has decided to drop its lawsuit against the Federal Government regarding state rights entitlements, citing positive progress in resolving claims under the Malaysia Agreement (MA63) and assurances from the federal government that their claims will be addressed.

In a joint statement comprising 12 representatives, the decision to withdraw the suit was also based on the establishment of the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) chaired by the Prime Minister and the Technical Committee for MTPM63 (Technical Committee) chaired by Deputy Prime Minister II.

The purpose of the said committee is to fulfill the constitutional rights of Sabah and Sarawak as intended in the Malaysia Agreement 1963 (MA63), as added by Sabah Pakatan Harapan.

The statement further mentioned that one of the plaintiffs in their Originating Summons (OS), Datuk Ewon Benedick (pic), has been appointed as a permanent member of the MTPMA63 and the Technical Committee, joining other members from the Sabah state government.

“The Technical Committee has also agreed to address Sabah’s longstanding entitlement based on the 40% formula within 12 months starting from July 18, 2023,” stated the joint statement.

The representatives expressed satisfaction that the disclosure of the annual net revenue collected or derived from Sabah will be made known to the representative of the Sabah government, who will be a member of the Inland Revenue Board (LHDN) Board once the amendment to the Inland Revenue Board of Malaysia (LHDN) Act 1995 is re-tabled in Parliament.

It was informed to the representatives that the upcoming new review will replace the 2022 review and will increase the amount of special grants allocated to Sabah. The statement clarified that this new review will serve as an interim solution without affecting Sabah’s right to claim its special grant based on the 40% formula for the affected years.

“With these developments, two out of the three declarations we sought in our Originating Summons have been agreed to and will be implemented soon,” emphasized the joint statement.

The representatives acknowledged the legal opinions regarding the legal impediment posed by their positions as members of the federal and state Cabinet. They deemed it untenable to continue the legal action and agreed to withdraw the Originating Summons with the possibility of filing afresh.

However, the joint statement also stated, “If the remaining issues are not resolved and no agreement is reached, we reserve the right to bring this case back to court to pursue any unresolved constitutional rights, as provided for in MA63.”

Last year, the 12 representatives filed a claim in the High Court to assert Sabah’s entitlement to 40% of the federal revenue from the state. Their lawyer, Datuk Nelson Angang, had indicated that they were seeking a declaration under Article 112C and Section 2(1) of Part IV of the Tenth Schedule of the Constitution.

The 12 representatives involved are Datuk Christina Liew, Datuk Ewon Benedick, Datuk Frankie Poon, Datuk Seri Madius Tangau, Awang Hussaini Sahari, Chan Foong Hin, Phoong Jin zhe, Jannie Lasimbang, Peto Galim, Tan Lee Fatt, Vivian Wong, and Noorita Sual.