“Notwithstanding the court proceedings, it is hoped that negotiations will proceed in good faith towards reaching an agreement with the federal government,” Hajiji said in a statement.

Earlier today, the Court of Appeal allowed the federal government’s application for a stay of execution on a High Court order regarding Sabah’s entitlement to a 40% share of net federal revenue derived from the state.

In granting the stay order, Justice Zaini Mazlan said Putrajaya would “clearly be prejudiced” if forced to comply with the court’s order without the opportunity to present its case on appeal.

The federal government filed an application on March 3 to stay the High Court’s order.

Hajiji said the stay order granted is procedural in nature and keeps the status quo until the federal government’s appeal has been heard.

The appellate court’s decision does not set aside the High Court’s orders, he said, referring to last year’s ruling that the federal government had breached its constitutional duties by failing to honour Sabah’s 40% share of net revenue for the “lost years” of 1974 to 2021.

“While the High Court order is to hold a review for the ‘lost years’, it should not prevent a review for the current years as the federal government does not dispute the 40% formula and the need to hold a review,” he said.

He reiterated the state government’s opposition to the stay of the High Court order. However, he said his administration respects the court’s decision.

“This is an ongoing process, and the state government will continue to discuss the matter and seek a solution,” he said.

Last year, the High Court also gave the federal government three months to conduct a review with the Sabah government to determine the quantum of the 40% entitlement for the years in question.