He said such a “severe” finding was unprecedented and would affect the government’s entire structure since its inception.
“Can the government remain silent when it is said that we have acted unconstitutionally since 1974?” he said in the Dewan Rakyat today.
“Can the government stay silent on labels that our actions as illegal, irrational, procedurally improper, or disproportionate?”
The Attorney-General’s Chambers (AGC) announced on Tuesday that the federal government would not appeal the court’s decision affirming Sabah’s 40% entitlement to federal revenue earned in the state, as provided for in the Federal Constitution.
However, the AGC said the government intended to challenge other “defects” in the grounds of judgment.
The Kota Kinabalu High Court had also ruled that a post-2021 review conducted by the government on the state’s entitlement was illegal, irrational, procedurally improper and disproportionate, for which the AGC said an appeal was necessary.
Anwar told the Dewan Rakyat that the judgment also alleged major mistakes on the part of the federal and state governments since 1974.
“Without an appeal, the ruling could effectively penalise the federal government under Tun (Abdul) Razak (Hussein) and the successive administrations since 1974, as well as all state governments, including those led by Tun Mustapha Harun and Tun Fuad Stephens, and the political parties involved,” he said in justifying the federal government’s decision.
“We feel the substantive order must be appealed and certain records must be expunged as they unfairly condemn all past governments.”
Treasury sec-gen to write to Sabah
Anwar said discussions on Sabah’s 40% revenue entitlement would continue while Sabah is under a caretaker government, with technical talks now and major decisions after the state election.
“For now, at the very least, the Treasury secretary-general and the state government can discuss technical matters, including those referred to in the judgment,” he said.
“Later, within the technical agreement, it will naturally be discussed that any reference to the finance minister, the chief minister and the Cabinet will have to wait until after the state election and the formation of a new government.”
Anwar reiterated that Putrajaya had not been neglecting Sabah, which continues to receive the highest allocation under the unity government.
“I want to show that the view that we have ignored Sabah is not accurate because Sabah received the highest allocation of RM17 billion (in the 2025 budget),” he said.
“For example, the Malaysia Agreement 1963 (MA63) states that the regulatory control of electricity supply must belong to Sabah. So we handed it over in January 2024. But although it is now Sabah’s, we still provided RM1.2 billion because of the state’s electricity needs.”
Anwar also said Sabah’s 40% revenue entitlement had to be considered in the context of the entire federal and state budget framework.
“This is why negotiations are crucial to determine which items fall under state responsibility and which items fall under federal responsibility.
“Once that is agreed, we can calculate the 40% properly,” he said in response to Takiyuddin Hassan (PN-Kota Bharu), who asked whether Sabah’s 40% entitlement was separate from other allocations, and about the calculation formula, audit mechanisms, and fiscal impact on Putrajaya.