BN chairman Ahmad Zahid Hamidi said the decision not to appeal the ruling underscored the respect for the rights of Sabahans and was consistent with the principles of federalism.

“BN has always upheld the welfare of the people and strived to ensure that all of the federal government’s commitments to the state are carried out fairly,” he said in a statement.

The Attorney-General’s Chambers said yesterday the federal government would not be challenging the Kota Kinabalu High Court’s ruling upholding Sabah’s constitutional entitlement to 40% of federal revenue collected from the state.

The AGC’s statement was issued following a special Cabinet meeting yesterday to discuss the court’s Oct 17 ruling on a judicial review application filed by the Sabah Law Society against the federal government.

However, the AGC said it would appeal the “defects” in Justice Celestina Stuel Galid’s finding that a post-2021 review conducted by the federal government was unlawful, irrational, procedurally flawed and disproportionate.

The Kota Kinabalu High Court ruled that Putrajaya had acted unlawfully by failing to honour Sabah’s entitlement to a 40% share of revenue earned in the state for nearly five decades.