By Olivia Miwil
KOTA KINABALU: The federal government's recent application for a stay of execution does not affect the principle of Sabah's claim for the 40 per cent special grant.
Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud said the application was filed in line with the Attorney-General's notice of appeal made on Nov 14 last year against part of the Kota Kinabalu High Court's decision.
On Oct 17 last year, the High Court acknowledged Sabah's entitlement to a 40 per cent share of net federal revenue derived from the state for the period between 1974 and 2021, commonly referred to as the "Lost Years".
Mustapha said the 180-day period for the implementation of the order is expected to expire on April 15, 2026, while the hearing date for the appeal has yet to be fixed by the court.
The application for the stay is scheduled to be heard at the Court of Appeal on March 31.
"Without the stay, both parties — the Federal and Sabah governments — could face the risk of committal proceedings (contempt of court) even though the appeal process has not yet been heard.
This application for a stay does not affect the principle of Sabah's claim for the 40 per cent special grant.
"Instead, it is intended to provide adequate space for both parties to continue negotiations and conduct a more detailed examination of the calculation of the Federal Government's net revenue derived from Sabah," he told reporters after a buka puasa event in Putatan near here.
Last week, Mustapha said he was surprised by the notice of motion filed by Putrajaya but affirmed that the Federal Government would fulfil the 40 per cent entitlement.
He said the application for a stay of the court order was also intended to ensure ongoing negotiations could proceed in an orderly manner while allowing both parties the space to reach a fair and comprehensive resolution for Sabah.
The Sepanggar member of parliament said that since November 2025, several meetings had been held through the Negotiation Committee between the Federal Government and the Sabah state government at the officials' level.
The meetings reviewed the calculation methods and the verification of relevant revenue data.
He added that the Federal Government had shared data on net revenue obtained from Sabah for the period from 2007 to 2025.
"At the same time, efforts are being undertaken to complete data for earlier periods, particularly from the so-called 'Lost Years', much of which was recorded manually and requires further review.
"Discussions are also ongoing to determine a mutually agreed method for calculating the special grant based on the formula of 40 per cent of the Federal Government's net revenue derived from Sabah.
"The position taken by the Sabah government as well as the Sabah Law Society (SLS), which has chosen to oppose the stay of execution application, should be respected.
"I believe that the goal of all parties remains the same — to ensure that Sabah's rights as provided for under the Federal Constitution continue to be safeguarded and implemented fairly."
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