KOTA KINABALU, Oct. 17 -- The Kota Kinabalu High Court has ruled that the federal government acted unlawfully by not fulfilling Sabah's right to 40 per cent of federal revenue for nearly 50 years.

Delivering her judgment in open court, Judge Celestina Stuel Galid declared that the special grant arrangements between the federal and state governments were "unlawful, ultra vires, and irrational," as they violated the Federal Constitution, Malaysiakini reported.

"It is unlawful on the part of the federation to make the intended special grants under the 10th Schedule," Malaysiakini quoted her as saying.

The judge found that the Second and Third Review Orders issued by the federal and state governments were invalid, and ruled in favour of th...