KOTA KINABALU: Sabah’s 40% share for the return of all revenue earned by the Federal Government from the state remains in place, says Sabah Law Society (SLS) president Roger Chin.

       Chin disagreed with Tengku Datuk Seri Zafrul Tengku Abdul Aziz's statement that the 40% revenue sharing formula with Sabah was no longer applicable following a new agreement between Sabah and the federal government reached in 1969.

       According to Chin, the federal government could not make its decisions unilaterally.

       Chin said that under Article 112D of the Federal Constitution, it specifically provides for a second review to be done for the next five-year period beginning 1974.

       “The review is now overdue by 48 years," he said in disputing Tengku Zafrul's statement that the 40% Sabah share as provided under the Constitution was no longer applicable.

       Tengku Zafrul's statement triggered a political storm both in Parliament as well as among political circles in Sabah with some demanding the federal government pay up or face legal action.

       Chief Minister Datuk Seri Hajiji Noor had also assured that the Sabah government will continue its 40% revenue share with the federal government.

       Chin said Article 112D of the Federal Constitution states that there shall be a review of the special grants made to Sabah and Sarawak for five-year periods beginning 1969, 1974 and thereafter, at such time as federal and state governments require.

       He said the first review under Article 112D was done pursuant to the Sabah Special Grant (First Review) Order, 1970 (P.U. (A) 328/1970 dated Aug 18, 1970).

       The federal government and the Sabah government had then agreed that instead of the 40% grant, another grant would made for 1969 (RM20mil), 1970(RM21.5mil) 1971(RM23.1mil),1972 (RM24.8mil)and 1973(RM26.7mil).

       He said the period of this new grant was specifically stated to be from Jan 1, 1969 to Jan 1, 1974 but there has never been any review from 1974 to the present day.

       "Article 112D makes it very clear that reviews are to be conducted between the federal government and the Sabah government jointly and never unilaterally.

       "If on any review, the federal government and the Sabah state government are unable to reach agreement on any matter, it would be referred to an independent assessor, and his recommendations shall be binding on the governments concerned and shall be given effect as if they were the agreement of those governments," Chin said.

       He said Article 112D was put in place for Sabah and Sarawak to be allocated special revenues to meet their needs above and beyond what other states receive.

       "It was to assist in the quicker infrastructure and economic development of Sabah and Sarawak," he added.

       "It is misplaced for the Federal Minister to imply that any review under Article 112D must only take into account the financial position of the Federal Government, as well as the needs of the state.

       "Such considerations are merely also to be taken into account amongst others in a review negotiation between parties," he said, in urging the federal government to be sincere in its commitment to increase the special grant to Sabah.

       He said it was important for the federal government to be transparent in making information available to the Sabah government with regards to the annual grants.