KOTA KINABALU, Nov 19 — The federal and Sabah governments are in disagreement over what should be included in deriving the special grant for the state, said Datuk Seri Masidi Manjun.
The Sabah finance minister said the issue was a point of contention in negotiations for payment, as the state government wanted to include income of public listed companies with significant operations here.
“The state has to depend on federal government data and without it we can only make estimations based on what we can obtain. For instance, the income based on dividends we get from Petronas’s oil revenue,” he said.
He was answering a supplementary question from Sekong assemblyman Alias Sani during the question and answer session at the state assembly sitting today.
Alias asked him whether the state agreed with Prime Minister Datuk Seri Anwar Ibrahim that the total income derived from the state was RM10.2 billion.
Masidi said Sabah was also seeking information regarding profits generated by firms operating in the state.
“These companies whose accounts is like they are operating in KL but their business is in Sabah.
“We submitted data and the federal government made their announcement based on their own data. So we have exchanged data and will hopefully come to a conclusion,” he said.
The 40 per cent special grant is a contentious issue, stemming from the state government’s promise to fight for Sabah rights.
The special grant is enshrined in the Federal Constitution under Article 112C and Part IV, Tenth Schedule of the Federal Constitution, which stipulated that two-fifths of the federal government’s net revenue in Sabah should be returned to the state.
Masidi said that the matter was of national importance, and both the state and federal government would benefit from a resolution.
“We have to be practical and see how. Its not just a Sabah issue but it involved the whole Malaysia. We are not just trying to solve our problem but everyone’s problem and we all hope to get to the end of this problem,” he said.
Anwar has promised a solution to the issue and in the meantime, doubled the interim payment to RM600 million while negotiations continue.
