The Federal Court of Appeal will decide on April 6 whether to pause a landmark High Court order concerning Sabah’s 40% revenue entitlement.
PUTRAJAYA: The Court of Appeal has fixed next Monday to deliver its decision on the Federal Government’s application for an interim stay of a High Court ruling on Sabah’s Special Grant entitlement.
A three-member bench chaired by Judge Datuk Mohamed Zaini Mazlan set the date after hearing submissions from all parties involved in the case.
Justice Mohamed Zaini, who sat with judges Datuk Ismail Brahim and Muniandy Kannyappan, stated the bench needed ample time to consider the complex issues raised in the application.
Senior Federal Counsel Ahmad Hanir Hambaly, representing the Federal Government, argued the interim stay was necessary to preserve the integrity of the pending appeal and prevent it from being rendered nugatory.
He said the appeal raises serious constitutional questions concerning the interpretation of Article 112D of the Federal Constitution, which governs the financial relationship between the Federation and the State.
Ahmad Hanir explained the Federal Government is currently engaged in ongoing negotiations with the Sabah Government regarding the implementation of the 40% entitlement for each consecutive financial year from 1974 to 2021.
He added these negotiations entail a comprehensive evaluation of the Federal Government’s financial position and the net revenue derived from Sabah over the disputed period.
Counsel Dr David Fung, representing the Sabah Law Society (SLS), submitted that the Federal Government should have sought an extension of time from the Kota Kinabalu High Court rather than filing for a stay.
Fung argued the High Court possessed the power to grant such an extension, especially given the ongoing negotiations cited by the Federal Government.
Sabah Attorney General Datuk Brenndon Keith Soh, acting for the Sabah Government, concurred that the appellant should have applied to the High Court first before approaching the Court of Appeal.
Brenndon also stated the Sabah Government’s view that the appeal would not be rendered nugatory even if the requested stay is not granted by the appellate court.
The Kota Kinabalu High Court ruled last October that the Federal Government had acted unlawfully by failing to fulfil Sabah’s constitutional right to 40% of federal revenue from 1974 to 2021.
That court ordered both governments to review the entitlement for the 47-year period, giving them 90 days to complete the review and a further 180 days to reach a final agreement.
The judicial review was filed by the SLS, which contended both governments had breached their constitutional duties by failing to legally review the Special Grant payments.
The case centres on the interpretation of Articles 112C and 112D of the Federal Constitution concerning special grants and periodic reviews for Sabah and Sarawak.
