Justice Celestina…order Putrajaya to commence review within 90 days and conclude within 180 days.
KOTA KINABALU : – The High Court here has ruled that the federal government acted unlawfully and beyond its powers under the Federal Constitution by failing to honour Sabah’s 40 per cent share of federal revenue for nearly five decades.
Judge Celestina Stuel Galid declared that the special-grant review orders jointly issued by the federal and state governments were “unlawful, ultra vires and irrational”, breaching the Constitution.
“It is unlawful on the part of the federation to make the intended special grants under the 10th Schedule,” she said when delivering her decision in open court.
She also found that the Second and Third Review Orders were invalid and allowed the Sabah Law Society’s (SLS) application in full.
According to the report, the court issued a mandamus order directing Putrajaya to conduct a new revenue review with the Sabah government under Article 112D of the Constitution and to agree on the state’s 40 per cent entitlement for each financial year from 1974 to 2021, with the review to commence within 90 days and conclude within 180 days.
The court also accepted a request from SLS to recognise a Fourth Review Order, gazetted on Aug 27, 2025, noting that it carried the same effect as the previous orders and should be included for completeness in the final certiorari order.
Celestina did not issue an order as to costs.
SLS was represented by counsels David Fung, Jeyan Marimuttu, and Janice Junie Lim, while the federal government was represented by senior federal counsel Ahmad Hanir Hambaly @ Arwi, Nur Atirah Aiman Rahim, and Solehheen Zaki, and the state government was represented by the Sabah Attorney-General’s Chambers led by Brenndon Keith Soh.
Federal counsel later informed the court that the government would file a formal application for a stay pending further instructions. – Borneo Post
