Sunday, June 1, 2025

Sabah’s 40% revenue: Court dismissed Putrajaya’s appeal, allows Sabah Law Society’s judicial review

Justice P. Ravinthran…The issue that SLS is seeking to address has high constitutional importance, no less. 

KOTA KINABALU – The federal attorney-general (AG) has lost its bid to challenge the high court’s decision to allow the Sabah Law Society to proceed with its judicial review on the state’s 40% entitlement.

The Court of Appeal in Putrajaya dismissed the AG’s appeal in a unanimous decision delivered via Zoom, Tuesday.   

This would mean that SLS’s judicial review proceedings will commence.

This allows the Sabah law body fight to secure recognition and fulfilment of the 40% entitlement enshrined in Articles 112C and 112D of the Federal Constitution, alongside Section 2 of Part IV of the 10th Schedule.

In the unanimous decision delivered by justice Ravinthran Paramaguru via Zoom today, the court disagreed with the federal government’s contention that matters relating to Sabah’s 40% entitlement are “non-justiciable”.

SLS said its judicial review was in the public interest to compel the federal and Sabah governments to conduct a comprehensive review of Article 112D.

SLS also wants a definitive court declaration that the 40% entitlement should be interpreted and delivered faithfully in the spirit of the Federal Constitution.

In June 2022, SLS filed a leave application for a judicial review, naming the federal government and Sabah state government as the first and second respondents, respectively. 

The high court granted leave to SLS on November 11, the same year.

SLS’s judicial review, among others, includes seeking a declaration that the failure of the federal government to hold the second review in the year 1974 is a breach and contravention of its constitutional duty stipulated under Article 112D, Clauses (1), (3) and (4) of the Federal Constitution.

They also seek a declaration that 40% entitlement remains due and payable by the federal government to the Sabah government for each consecutive financial year for the period from the year 1974 to the year 2021.

SLS also seeks an order of mandamus for the federal government to hold another review with the Sabah government to give effect to payment of the 40% entitlement.

SLS is also seeking payment for Sabah of a grant amount in accordance with Section 2 (1) of Part IV of the 10th Schedule of the Federal Constitution – for each consecutive financial year for the period from 1974 to 2021.

Previously, Putrajaya’s senior federal counsel had argued that the 40% special grant provisions under Articles 112C and 112D of the Federal Constitution are not open to a court challenge because they concern non-justiciable financial and political considerations. –  scoop.com

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