What constitutional duty is the federal government accused of breaching?

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Federal Government Accused of Breaching Constitutional Duty on Sabah Revenue Review

The federal government is facing accusations of failing to uphold its constitutional obligation to periodically review Sabah's entitlement to a 40 per cent return of revenue derived from the state. This alleged breach has led to the Sabah Law Society (SLS) successfully obtaining leave from the High Court to initiate a judicial review into the matter. The core of the dispute centres on the federal government's alleged failure to conduct a review of this revenue return every five years, a process that should have commenced in 1974.
Judicial Review Granted Over Alleged Constitutional Breach

The High Court has granted the Sabah Law Society leave to pursue a judicial review concerning the federal government's alleged failure to review the 40 per cent revenue return owed to Sabah. This decision by Justice Datuk Ismail Brahim signifies that the court considers the SLS's case to be arguable and that the society possesses the legal standing, as a public interest litigation, to bring the matter before the court. The proceedings are scheduled for December 16.
Dispute Over Special Annual Grant and Past Entitlements

The legal challenge is partly motivated by the federal government's gazetting of a special annual grant of RM125.6 million for Sabah for the period of 2022 to 2026. The SLS contends that this grant is unconstitutional as it does not rectify the underlying failure to conduct the mandated five-yearly reviews. Furthermore, the judicial review aims to address the federal government's alleged breach of its constitutional duty to pay Sabah the 40 per cent revenue entitlement for the period between 1974 and 2021, arguing that the obligation to pay this entitlement for the intervening years remains.
Legal Arguments on Justiciability and Constitutional Interpretation

The Attorney General's Chambers, representing the federal government, argued that matters pertaining to the Sabah Special Grant are non-justiciable, meaning they cannot be subjected to judicial review. However, the High Court judge indicated that the 2022 review order is justiciable and that the court possesses the authority to interpret the Federal Constitution to ascertain any breach of the constitutional duty to pay the 40 per cent entitlement. The SLS's application seeks a public remedy to address such breaches.
State Government's Support for the Judicial Review

The Sabah state government has applied to be joined as a respondent in the suit to represent its interests and has expressed support for the SLS's judicial review application. The state's counsel emphasized that the case is not solely about challenging the legality of the 2022 Special Grant Order but is fundamentally about seeking compensation for the federal government's failure to conduct the review mandated under Articles 112C and 112D of the Federal Constitution. This legal action underscores the importance for the federal government to honour its revenue-sharing obligations and maintain transparency in its dealings with Sabah.

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What constitutional duty is the federal government accused of breaching?

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