KOTA KINABALU, Aug 7 — Taking legal action against the federal government on the issue of the state’s revenue rights is not judicious, asserts Datuk Seri Mohd Shafie Apdal.

He said Sabah could stake its claim via other approaches. 

“Dragging the issue to court is not a wise move in getting the federal government to meet our demands. There are other avenues and options,” he insisted.

Mohd Shafie was responding to a supplementary question by Datuk Jeffrey Kitingan (STAR-Tambunan) who made the suggestion at the Sabah State Assembly today.

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The chief minister said the state government was aware that the claim, made over 50 years ago, should have been resolved.

“It is not easy to administer and I have directed two important bodies, Finance (Ministry) and the Economic Planning Unit to study the issue. Some issues had been agreed on at the recent meeting; however, the prime minister would be the best person to announce it,” he said.

Earlier, Shafie, in response to Jeffrey’s question, said the state government would remain relentless in seeking a review of Sabah’s claim for a special grant of 40 per cent of its net revenue.

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He said the openness of the present federal government leadership provides an opportunity and platform for the state government to stake Sabah’s claims in accordance with provisions in the Federal Constitution.

He stressed that the Special Cabinet Committee chaired by Tun Dr Mahathir Mohamad was set up to review and make recommendations on the implementation of Sabah and Sarawak’s rights and autonomy in accordance with the Constitution, Malaysia Agreement 1963 and Report of the Intergovernmental Committee 1962.

“The committee meeting should have ended last July but it has been extended to October for negotiations and refining the specifics,” he said.

Shafie said the Sabah government’s claims were based on the provisions contained in Subsection 2(1), Section 4, Schedule 10, of the Federal Constitution which is “two-fifths of net proceeds from Sabah”.

“The definition of net proceeds is revenue accrued to the Federation, less the amount received by the state from delivery of the proceeds,” he explained.

He said the Sabah government on July 9 submitted a more structured draft plan to the federal government for the special grant review.

“The state government is awaiting the federal government’s response,” he said.

Jeffrey had asked whether the state government would demand the arrears of RM1 trillion or 40 per cent of net proceeds earned by Sabah as provided for in Article 112C and Schedule 10 of Part V of the Federal Constitution. — Bernama