KOTA KINABALU: The Sabah government will oppose an application by the federal Attorney General seeking a stay of the High Court order on the state’s 40 per cent share of net federal revenue derived from Sabah for the years 1974 to 2021, commonly referred to as the “Lost Years”.
Sabah State Attorney-General Datuk Brenndon Keith Soh said the State Attorney General’s Chambers had confirmed the state government’s position regarding the application for a stay of the High Court order dated Oct 17, 2025.
The High Court had directed the federal government to conduct a review with the state government to give effect to the Federation making the 40 per cent special grant entitlement within the constitutional framework for the “Lost Years” and to reach an agreement within 180 days, by April 15, 2026.
Since the judgment was delivered, Soh said the state government had remained committed to complying with both the letter and spirit of the court’s decision.
“The State has consistently participated in the engagement process with the relevant federal authorities and several meetings and technical discussions have been convened to facilitate the exchange of information, verification of data, and consideration of possible methodologies for determining the quantum of the 40% special grant entitlement.”
He said the state had approached the discussions constructively, transparently and in good faith, with the aim of reaching a fair and mutually acceptable resolution within the timeline set by the court.
“In this regard, the State has also put forward proposals and working frameworks to assist the parties in progressing towards an agreement.”
Soh said the state government’s position was that there had been no delay or lack of cooperation on Sabah’s part in implementing the High Court order.
“On the contrary, the State has taken active and continuous steps to ensure that the court-mandated process proceeds in an orderly and productive manner.”
He said the state government remained ready, willing and able to continue engaging with the federal government in a constructive manner to reach a mutually agreed outcome consistent with the constitutional provisions governing the special grant and the terms of the High Court order.
Soh also pointed out that Article 112D(6) of the Federal Constitution provides a mechanism if both parties fail to reach an agreement.
“The provision necessitates the appointment of an independent assessor, whose recommendations on the matter ‘shall be binding on the governments concerned and shall be given effect as if they were the agreements of those governments.’”
He said this constitutional safeguard ensures the review process can still be concluded in an orderly manner even if a mutual settlement is not reached.
In view of ongoing discussions and the approaching court-stipulated deadline, Soh said both parties should focus on fulfilling the terms of the High Court order and work collaboratively towards an equitable resolution within the timeframe.
He added that the State Attorney General’s Chambers would continue to take the necessary legal steps to safeguard Sabah’s rights and interests while supporting a process consistent with the rule of law, constitutional principles and cooperative engagement between the federal and state governments.
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