Kota Kinabalu: The Sabah Government is urged to demand the withdrawal of the Federal Government’s Notice of Appeal as a key condition in upcoming negotiations on Sabah’s 40 per cent constitutional revenue entitlement.
Upko’s Tamparuli Assemblyman Datuk Seri Wildfred Madius Tangau said the Sabah Cabinet must take a firm stand and insist on the withdrawal as part of the terms of negotiations scheduled for Dec 18.
He said State Finance Minister cum Karanaan Assemblyman Datuk Seri Masidi Manjun stated that the negotiations with the Federal Government had begun on Nov 17 and will resume on Dec 18.
“Article 112C and Subsection 2(1) of Part IV of the Tenth Schedule of the Federal Constitution clearly stated that 40 per cent of the total Federal revenue collected from Sabah must be returned to Sabah.
“That is Sabah’s right. That is Sabah’s entitlement. From 1975 to the present, Sabah has been denied this right,” Madius said when debating the 2026 State Budget.
He cited a recent Kota Kinabalu High Court ruling which declared that all past negotiations between the Sabah and Federal governments that failed to take into account the 40 per cent entitlement amounted to a constitutional breach.
“The High Court has made it clear that negotiations conducted without reference to this constitutional right are unlawful.
“Therefore, the Federal Government must immediately fulfil this Sabah’s constitutional right of the 40 per cent from the federal revenue collected from the State,” he said.
Hence, Madius said Sabah, as the second respondent in a judicial review initiated and filed by the Sabah Law Society (SLS) over federal-state negotiations since 1975, must make such demand.
“The Federal Government should withdraw the Notice of Appeal because the appeal is irrational and contradicts the Federal Cabinet’s decision of ‘no appeal on the 40 per cent’, as announced by the Prime Minister in the Parliament,” he said, adding the appeal was inconsistent with the Federal Government’s recognition and acceptance of Sabah’s constitutional entitlement.
In addition, Madius said only two of the eight grounds cited in the Notice of Appeal referred to the written judgment of the Kota Kinabalu High Court, while the remaining six had no direct connection to the ruling.
“If the Federal Government refuses to withdraw the Notice of Appeal, then the Sabah Government, as the second respondent and an interested party in this case, should refer the matter to the Court of Appeal by initiating a judicial review before the Court of Appeal to resolve the matter,” he said.
Responding to Tungku assemblyman Assafal P. Alian, Madius said if the Federal Government is truly sincere in negotiating with the State Government on the Sabah’s 40pc constitutional revenue entitlement, there should be no Notice of Appeal which is what Sabah people want and this can be resolved by looking at the Federal Constitution that clearly states everything on the Sabah’s right on the 40pc entitlement.
