Payment mechanism of 40% needs to be established between state and federal government: Ewon

6 January 2024

By Wartawan Nabalu News

TELUPID: President of United Progressive Kinabalu Organisation (UPKO), Datuk Ewon Benedick, stated that discussions to determine the payment mechanism for the 40% federal revenue in Sabah need to be made between the State and Federal Governments.

He mentioned that he will be having a meeting with the Chief Minister of Sabah, Datuk Seri Hajiji Haji Noor, on Tuesday (January 9) to present the proposed mechanism based on the discussions held by UPKO leaders and experts in the field.

"As the President of UPKO and a member of the Federal Cabinet, I have conducted a roundtable discussion on December 19, 2023, involving specific experts in the fields of law, former magistrates, and those with extensive experience in accounting, taxation, and auditing.

"We have reached an agreement to propose a mechanism, and on Tuesday, I will have a meeting with the Chief Minister of Sabah to propose the outcome of the roundtable discussion, which includes the proposed mechanism for the repayment of 40% federal revenue in Sabah.

"I am aware that this effort needs to be made 'G to G,' meaning between the state and federal government. Therefore, I am handing over this proposal to the Chief Minister of Sabah for discussion at the state government level through the Cabinet meeting," he said.

He made these remarks during a press conference at the UPKO Christmas and New Year Open House event held at the Telupid District Council Hall today.

Ewon, who is also the Minister of Entrepreneur Development and Cooperatives, was asked to comment on the latest developments regarding the proposed framework discussed on December 19.

He hopes that the state government will come up with a new mechanism to be presented to the federal government.

"The formula is already there, which is 40%, but the mechanism is crucial because it involves outstanding claims, future payment claims, and discussions on the direct revenue collected by revenue offices in Sabah and the revenue that is not collected by revenue offices in Sabah (but goes through revenue offices in the Peninsula)," he said.

He added that this makes the discussion on the matter highly technical.

"Therefore, we need to come up with a mechanism that facilitates all parties (state and federal governments) to implement what has been outstanding since 1974," he said.

Ewon hopes that this effort will yield positive results and receive the support of the people of Sabah.

"We know that many leaders from Sabah have previously served in the federal cabinet, and for me, this is a great responsibility. That is why I took the initiative, with the support of the party, to seek a proposed mechanism for this matter," he said.

Regarding the re-entry of former leaders and party members into UPKO, Ewon stated that the party is always open and welcomes anyone who wishes to join UPKO.

"As I have stated before, as the President of UPKO, we welcome the re-entry of former members, including those who have previously held top leadership positions.

"We have conducted several programmes last month involving former deputy chief ministers, former UPKO representatives, and discussions are still ongoing. I am confident that when the time comes, we will organise an event to welcome them back into the party.

"At the same time, we also welcome new members, especially among the youth," he said.

Ewon emphasised that this makes UPKO a party that is open to all segments of society.