By Former Petagas assemblyman Datuk James Ligunjang
KOTA KINABALU: The Federal Constitution of Malaysia provides critical safeguards to ensure fair governance and equitable distribution of resources among the states of the Federation.
Among these, Article 112C stands as a cornerstone in guaranteeing the financial entitlements of Sabah and Sarawak, underpinned by the provisions of the Tenth Schedule.
Specifically, Section 2(1) of Part IV mandates that Sabah is entitled to an annual grant equal to two-fifths (40%) of the excess net revenue derived by the Federation from Sabah over the baseline revenue of 1963.
This formula reflects the importance of ensuring that Sabah receives a proportional share of the wealth as intended by the founding fathers from Sabah.
This provision is not merely a legal entitlement but a recognition of Sabah’s significant contribution to the federation.
By securing a share of revenue based on federal collections in Sabah, Article 112C ensures that Sabah has access to resources crucial for its development and prosperity. Moreover, the definition of “net revenue” under Section 2(1) “revenue accruing to the Federation, less assignments to the State” establishes a transparent framework for calculating Sabah’s financial entitlements, emphasising fairness and accountability.
However, concerns regarding the Federal Government’s adherence to these provisions have persisted since the early years of the Federation.
Delays and non-compliance in fulfilling the grants mandated under Article 112C have led to growing grievances among the people of Sabah and Sarawak.
The perceived neglect of these constitutional obligations has raised questions about equitable treatment within the federation and has hindered the development of these two Borneon states that made Malaysia a reality.
To address disputes regarding financial entitlements, Article 112D (6) serves as a vital safeguard.
This provision allows for the appointment of an Independent Assessor to resolve disagreements, ensuring transparency and fairness in cases where constitutional obligations are disputed.
By invoking Article 112D (6), Sabah and Sarawak can assert their rights and hold the Federal Government accountable for decades of neglect. This mechanism not only rectifies past injustices but also reinforces Malaysia’s commitment to equitable governance.
It is essential for the Federal Government to recognise that compliance with Articles 112C and 112D is both a legal obligation and a moral imperative.
Upholding these provisions reflects a commitment to fairness, justice, and unity within the federation. For the people of Sabah and Sarawak, it is not just about grants or revenue; it’s about honoring the promise of mutual respect, equity, and partnership as enshrined in the Malaysia Agreement 1963.
In conclusion, the provisions of Articles 112C and 112D (6) are crucial in ensuring the financial rights of Sabah and Sarawak. It is time for both states to assert their entitlements, fostering a sense of justice and equity that is long overdue.
By invoking Article 112D (6), Sabah and Sarawak can seek a resolution that acknowledges their contributions to the federation and corrects historical neglect. It is essential for the Federal Government to engage with these states sincerely and work towards an equitable distribution of revenue, ensuring a brighter future for the people of Sabah and Sarawak alongside those in the Federation of Malaya.
