Stay of execution application will not affect Sabah’s rights, says Mustapha

KOTA KINABALU (March 15): The application for a stay of execution in relation to the court ruling on Sabah’s 40 per cent special grant does not affect the state’s constitutional rights, said Datuk Mustapha Sakmud.

The Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) said the issue of the 40 per cent special grant to Sabah, as stipulated under Articles 112C and 112D of the Federal Constitution, remains a key concern because it involves the state’s constitutional rights.

“Since the decision by the Kota Kinabalu High Court on Oct 17, 2025, both the federal government and the Sabah state government have taken several steps to ensure that this matter is addressed comprehensively through legal processes as well as negotiations between the two parties,” he said during an iftar (breaking of fast) with the media here on Saturday.

Mustapha said that on Nov 14, 2025, the Attorney General filed a notice of appeal against part of the High Court’s decision. In line with the appeal, the federal government also filed an application at the Court of Appeal to stay the execution of part of the court order pending the outcome of the appeal.

He stressed that the application for a stay of execution does not undermine Sabah’s claim to the 40 per cent special grant but instead provides space for both parties to continue negotiations and carry out a more detailed examination of the calculation of the federal government’s net revenue derived from Sabah.

“Since November 2025, several meetings have been held through the negotiation committee between the federal government and the Sabah state government at the officials’ level to examine the calculation methods and verify related revenue data technically,” he said.

Mustapha said the federal government had shared data on net revenue obtained from Sabah for the period from 2007 to 2025. Efforts are also ongoing to complete data for earlier periods, particularly from what is referred to as ‘The Lost Years’, much of which was recorded manually and requires further scrutiny.

He added that discussions are also underway to determine a mutually agreed method in calculating the special grant based on the formula of 40 per cent of the federal government’s net revenue derived from Sabah.

“The stay application is also intended to ensure that the ongoing negotiations can proceed in an orderly manner and to allow both parties to reach a fair and comprehensive solution for Sabah,” he said.

Mustapha noted that the 180-day period related to the implementation of the court order is expected to end on April 15, 2026, while the hearing date for the appeal has yet to be fixed. Without the stay, he said both parties risk facing committal proceedings for contempt of court even though the appeal has not yet been heard.

The stay application is scheduled to be heard at the Court of Appeal on March 31.

Mustapha stressed that the stance taken by the Sabah government and the Sabah Law Society (SLS) to oppose the stay application should be respected.

“In a mature democratic and legal system, differences of opinion are natural and form part of the checks and balances process.

“However, I believe the objective of all parties is the same – to ensure that Sabah’s rights as enshrined in the Federal Constitution continue to be preserved and implemented fairly. I hope that all ongoing legal processes and negotiations can be carried out wisely, in a spirit of cooperation, and with the interests of the people of Sabah as the priority,” he said.