KUALA LUMPUR (June 14): The Netherlands-based Hague Court of Appeal will decide on June 27 whether to recognise and enforce a US$15 billion (RM69 billion) final award against Malaysia by Spanish arbitrator Gonzalo Stampa in February last year in favour of a group claiming to be the descendants of the Sulu Sultanate, Prime Minister Datuk Seri Anwar Ibrahim told Parliament on Wednesday (June 14).
The same award was deemed effectively annulled in the French courts, after the Paris Court of Appeal ruled in favour of Malaysia last week and quashed the preliminary award rendered on May 25, 2020, by the Spanish arbitrator to the Sulu claimants.
“Although the June 6 decision in Paris was in favour of Malaysia, the government has received intel the Sulu claimants will continue their tactics of attempting to enforce the final award in other countries,” Anwar told the Dewan Rakyat on Wednesday. “This is an abuse and violation of the judicial and arbitral process that has been recognised at the international level.”
Anwar said the government’s legal action to annul the exequatur order — granted to the Sulu heirs via a Luxembourg court — is still pending further instructions from the court. An exequatur order is a legal document issued by a sovereign authority that permits the exercise or enforcement of a right within the jurisdiction of the authority.
Malaysia's legal feud with the Sulu heirs revolves around the Sulu heirs' alleged claims to the state of Sabah.
Their legal claims in arbitration proceedings are grounded on an 1878 agreement between the then-sultanate and a British company, where the Borneo state was leased to the company in return for annual payments.
In 2013, under then prime minister Datuk Seri Najib Razak’s administration, Malaysia ceased making the annual payments following a violent incursion into Sabah by Sulu militants.
The preliminary award had declared that the agreement exists, and that it contains a valid arbitration clause. The final award of US$15 billion to the eight Sulu claimants carries 10% interest per annum.
Anwar said that Stampa had no jurisdiction to issue any final award or action since a Madrid court on June 29, 2021, revoked his appointment as arbitrator. In response to Stampa’s actions to bring arbitration proceeds to the French court, he said the government filed a criminal complaint in Spain against the former arbitrator.
“On Nov 25, 2022, the Spanish court concluded its investigation and concluded there is possibility of Stampa being linked to criminal offences. Malaysia has filed its submissions and is awaiting the court’s next instructions,” Anwar said.
“The Malaysian government would also like to emphasise that all awards issued by Stampa violated principles of international public policy, specifically because it involves violating the principles of diplomatic immunity, jurisdictional immunity and sovereignty,” he added.
Anwar reiterated the government’s stance that it will continue to defend Malaysia’s sovereign rights against the Sulu claimants in all relevant jurisdictions, and will not compromise on aspects of sovereignty and national security — including on safeguarding national assets from external threats.
Towards this, Anwar emphasised the government will not hesitate to take criminal action in accordance with Malaysian laws against any party — including Malaysian citizens — who colludes with the Sulu claimants to betray the interests and security of the country.
He said that the Royal Malaysian Police has initiated investigations against the claimants, Stampa, lawyers and other related parties under Section 124K of the Penal Code for the offence of sabotage.
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