Moyog rep urges Sabah to strengthen capacity to defend 40 pct revenue rights following federal appeal

KOTA KINABALU (Dec 15): Moyog assemblyman Datuk Donald Mojuntin has called for the immediate strengthening of Sabah’s legal, economic and technical capacity to defend the state’s constitutional right to the 40 per cent revenue, following the Federal government’s decision to appeal a landmark High Court ruling in Sabah’s favour.

Speaking during the debate at the Sabah State Assembly, Donald stressed that the 40 per cent revenue entitlement under the Federal Constitution is neither a new demand nor a political agenda, but a constitutional promise dating back to 1963 that has remained unresolved for more than six decades.

“This right is not a political interpretation. It is a clear decision of our own High Court,” he said, referring to the High Court of Kota Kinabalu’s ruling on Oct 17, 2025, which affirmed that the Federal government has a statutory and mandatory duty to review and pay the 40 percent to Sabah.

According to Donald, the court had clearly ruled that Sabah’s entitlement is part of the federal structure, not a matter of goodwill, and that the state is entitled to full access to revenue data, actual financial statements and the complete formula as stipulated under the Tenth Schedule of the Federal Constitution.

However, he said the Federal government’s decision to file an appeal raised serious concerns.

“The purpose of the appeal is clear, to challenge the High Court’s justification and, more critically, to avoid liability for the ‘lost years’ from 1974 to 2025, arising from the failure to conduct the mandatory five-year review under Article 112D(3),” he said.

Donald cautioned that the appeal was not merely a technical legal move, but an attempt to dilute the meaning of Article 112D(3) and to close the door on decades of arrears owed to Sabah.

“When the Federal government chooses litigation, Sabah can no longer rely on goodwill or ordinary negotiations. This is now a constitutional, fiscal, and technical battle,” he said.

He questioned whether Sabah is adequately prepared to face such a challenge, noting that the Federal government is backed by top constitutional lawyers, fiscal experts, revenue specialists, and a full technical machinery.

“In contrast, Sabah is still not fully equipped with senior constitutional counsel of national standing, professional actuaries to calculate liabilities for the ‘lost years’, certified accountants to audit revenue derivation, and fiscal economists and revenue analysts to build a defensible 40 per cent formula,” he said.

Donald stressed that this was not about blaming individuals, but addressing a structural weakness that must be corrected urgently.

“With due respect, we cannot enter a professional arena with amateur-level preparation,” he said.

He proposed the establishment of a Special Sabah Constitutional, Economic, Actuarial and Litigation Task Force, chaired by the State Attorney General.

The task force, he said, should be responsible for supporting the appeal process, professionally calculating arrears from 1974 to 2025, constructing a legally and economically sound 40 per cent formula, demanding full disclosure of revenue data from the Federal government, and reporting regularly to the Sabah Cabinet and the State Assembly.

“This is not a political team. This is a team to defend Sabah’s constitutional rights,” he stressed.