KOTA KINABALU, July 18 — Sabah did not relinquish its rights to a 40 per cent revenue entitlement from Putrajaya when it agreed to an interim payment of RM125.6 million in April last year as believed, Datuk Seri Masidi Manjun said today.

The Sabah finance minister said the state government is not giving up the entitlement and will continue to push negotiations with the federal government.

"I can categorically state that the State did not relinquish any of its constitutional rights in respect of the arrangement in 2022 for an interim solution.

"Therefore the receipt of an interim payment of RM125.6 million — an increase from RM26.7 million previously — was stated to be strictly without prejudice to all the State’s rights.

"Specifically, subject to the State’s right to rely on the existing formula and an agreement to continue further negotiations with the federal government. Due to the differences in interpretation and quantum, we agreed to disagree,” he said in a statement.

He said that the state government needed to make its stand clear to reply to allegations that the state government forfeited its rights to claim the special grant entitlement,.

He added that this matter is stated in Article 112C and Section 2 of Part IV in the Tenth Schedule as well as Article 112D of the Federal Constitution.

The constitutional provision sets out the formula and review of the 40 per cent net revenue entitlement that the federation government derives from Sabah.

Masidi said that Sabah has said as part of the terms to the interim payment that it had the right to claim what is due for the non-fulfilment of the federal government to conduct a constitutional review every five years since 1974.

"If both parties are unable to come to an agreement after negotiations then we will refer this matter to an independent assessor as provided in Article 112D (6) of the Federal Constitution.

"We have always maintained that this constitutional arrangement for Sabah was explicitly stated in the Report of the Inter-Governmental Committee dated 27.02.1963 and is an agreed revenue sharing arrangement between the state of Sabah and the Federation which led to the formation of Malaysia in 1963.

"No one can deny this historical fact,” he said.

The 40 per cent return of revenue to the state has been among the biggest political points of contention between the state and the federal government.

Among other things, disagreements on the formula has delayed negotiations for years although the federal government, under previous administrations, has promised to give Sabah what it is due under the Constitution.

Masidi said that the state government will always uphold Sabah’s constitutional rights and will do its best to meet the high expectations of the public.

"The supreme law of the land must be respected and we are confident that the federal government and the state government will arrive at a just, fair and equitable solution to this long outstanding issue as soon as possible,” he said.

Earlier this month, a Warisan state assemblyman had said that the Special Grant order for the interim payment will jeopardise the state’s claim towards the 40 per cent revenue entitlement.

Assafal Alian said that chief minister Datuk Seri Hajiji Noor had prematurely accepted "peanuts” when he should have insisted on the 40 per cent immediately and not let the state continue to suffer.