KOTA KINABALU: The Sabah Government will oppose an application by the Federal Attorney General seeking a stay of the High Court order relating to the State’s entitlement to 40 per cent of net Federal revenue derived from Sabah for the years 1974 to 2021, known as the “Lost Years”.
State Attorney-General Datuk Brenndon Keith Soh confirmed that the State Attorney General’s Chambers will oppose the application for a stay of the High Court order dated October 17, 2025.
He said the High Court order 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.
The order also required both parties to reach an agreement within a prescribed timeline of 180 days, which ends on April 15, 2026.
Soh said that since the delivery of the judgment, the State Government has remained committed to complying with both the letter and spirit of the High 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 per cent special grant entitlement,” he said in a statement today.
He said the State had approached the discussions constructively, transparently and in good faith, with the objective of achieving a fair and mutually acceptable resolution within the timeframe 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,” he said.
Soh stressed that it is the State Government’s considered position that there has been no delay or lack of cooperation on the part of the State 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.
He added that the State Government remains ready, willing and able to continue engaging with the Federal Government in a constructive manner to reach a mutually agreed outcome consistent with constitutional provisions governing the special grant.
Soh also noted that Article 112D(6) of the Federal Constitution provides a constitutional mechanism should both parties ultimately 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.
He said the safeguard ensures that the review process under the Federal Constitution can still be concluded in an orderly manner even if a mutually agreed settlement is not achieved.
“In light of the ongoing discussions and the approaching timeline stipulated by the court, the State Government is of the view that both parties should continue to focus and intensify efforts on fulfilling the terms of the High Court order and work collaboratively towards an equitable resolution within the prescribed timeframe,” he said.
Soh added that the State Attorney General’s Chambers will continue taking the necessary legal steps to safeguard the rights and interests of Sabah while supporting a process consistent with the rule of law, constitutional principles and cooperative engagement between the Federal and State Governments.
