Kota kinabalu: The Attorney General's Chambers (AGC) today emphasized that the Federal Government is not challenging the core issue of Sabah's Special Grant entitlement, specifically the 40 per cent revenue rate. Instead, it will initiate negotiations with the Sabah Government promptly.

According to BERNAMA News Agency, the AGC has filed a Notice of Appeal at the Kota Kinabalu High Court on Nov 13. This appeal is limited to particular parts of the court's decision that involve alleged errors in the judge's grounds of judgment. The judgment in question stated that both the Federal and Sabah governments had misused their powers and failed to meet constitutional responsibilities.

The AGC clarified that the Federal Government's appeal does not concern Sabah's 40 per cent revenue entitlement. Negotiations with the Sabah Government will proceed without delay.

Prime Minister Datuk Seri Anwar Ibrahim informed Parliament that the Federal Government's appeal targets only specific elements of the court's judgment, following an assessment of certain flaws in the decision as advised by the AGC. He stated that some parts of the written judgment exceeded the court's legal scope.

On Oct 17, the Kota Kinabalu High Court ruled that the Federal Government acted unlawfully and beyond its constitutional authority by neglecting Sabah's entitlement to 40 per cent of federal revenue from 1974 to 2021. The court mandated a review of Sabah's revenue entitlement for 1974-2021, with a 90-day period for completion and a 180-day deadline to reach a final agreement.

The ruling came after the Sabah Law Society (SLS) successfully applied for a judicial review, arguing that both the Federal and Sabah governments had failed their constitutional duties by not legally reviewing the payments. The case revolved around the interpretation of Articles 112C and 112D of the Federal Constitution. Article 112C addresses special grants and revenue assignments to Sabah and Sarawak, while Article 112D outlines the periodic review of these grants.