Sabah and federal governments must establish a payment mechanism of 40%, says Ewon

TELUPID: United Kinabalu Progressive Organisation (UPKO) president Datuk Ewon Benedick emphasised the importance of discussions between the state and federal governments to determine the repayment mechanism for 40 percent of the federal revenue in Sabah.


In light of this, he said that he will be meeting with Sabah Chief Minister Datuk Seri Hajiji Haji Noor on Tuesday to present a proposed mechanism that has been developed through discussions with UPKO leaders and experts in relevant fields.

As the President of UPKO and a member of the Federal Cabinet, Ewon revealed that a round table discussion was held on December 19, 2023, which involved experts from various fields such as law, former magistrates, and individuals with extensive experience in accounting, taxation, and auditing.

During this discussion, an agreement was reached to propose a mechanism for the repayment of 40 percent of the federal revenue in Sabah, he said.

Ewon intends to present the results of this round table discussion to the Chief Minister of Sabah during their meeting on January 9.

Recognising the need for a government-to-government (G-to-G) approach, Ewon will submit the proposal to the Chief Minister of Sabah to be discussed at the state government level through the Cabinet meeting.

He told reporters this at the Christmas and New Year 2024 Open House Celebration organized by UPKO at the Telupid District Council Hall.

As the Minister of Entrepreneurship and Cooperative Development, Ewon expressed his hope that the state government would develop a new mechanism to be submitted to the federal government.

“While the formula of 40 percent is already established, the focus now lies on determining the appropriate mechanism, considering outstanding claims and future payments, as well as addressing the revenue collected directly by the revenue offices in Sabah,” he added.

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