28-6-2023 (KUALA LUMPUR) Malaysia is one step closer to putting an end to the “sham and abusive” compensation claims made by eight self-proclaimed heirs of the defunct Sulu Sultanate, according to Datuk Seri Anwar Ibrahim.
“We have emerged victorious, ending an unpleasant episode that challenged Malaysia’s sovereignty. Fortunately, the claimants have failed,” said the Prime Minister in response to The Hague Court of Appeal’s decision to dismiss the bid by the claimants.
Anwar, who was on an official visit to Laos, made these remarks to the media and also released a statement affirming Malaysia’s satisfaction with the court’s ruling. He emphasized that the decision in favor of Malaysia demonstrated the court’s refusal to recognize the claimants’ final award.
“This decision effectively blocks any attempts by the claimants to enforce their illegitimate claims against the Government of Malaysia in the Netherlands,” stated Anwar.
According to him, this verdict by The Hague Court of Appeal marks another significant victory for Malaysia, following the decision by the Paris Court of Appeal on June 6. Anwar expressed confidence that Malaysia is now closer than ever to completely nullifying the disputed final award of approximately US$15 billion (RM70 billion) issued by Dr. Gonzalo Stampa, thereby consigning the claimants’ flawed claims to history.
On April 17, the Special Secretariat on Sulu Claims reported that The Hague Court of Appeal had heard submissions from both the Malaysian government and the Sulu claimants. Malaysia argued that the claimants’ application for the recognition and enforcement of Stampa’s purported final award against Malaysia should be considered null and void, and thus, denied.
The secretariat emphasized that Malaysia remains committed to safeguarding its sovereignty, upholding the integrity of the international commercial arbitration process, and exposing the claimants’ frivolous attempts to enforce a null and void award.
In 2019, the eight claimants initially filed a claim of US$14.94 billion (RM68.8 billion) through a Spanish arbitration court with Stampa acting as the arbitrator. However, his appointment was nullified by the Spanish courts in June 2021, a decision that was subsequently upheld by the Spanish Constitutional Court in February of this year.
Stampa, currently facing criminal action by Spanish authorities for disregarding a ruling to halt the arbitration case, relocated the seat of arbitration to Paris in February 2022, where he issued the “final award” against Malaysia.
In September last year, the French Arbitration Court proceeded with the Sulu descendants’ case against Malaysia, unaware of the Madrid court’s decision nullifying Stampa’s appointment as an arbitrator.
In their pursuit of enforcing the final award, the Sulu claimants reportedly attempted to seize the assets of Malaysia’s oil firm, PETRONAS, in Luxembourg, as well as assets in the Netherlands. They also targeted Malaysia’s diplomatic assets in France.
However, on June 6 this year, the Paris Court of Appeal ruled in favor of Malaysia, setting aside the Paris Arbitration Court’s final award to the so-called Sulu claimants.
Anwar emphasized that the government spared no effort in protecting Malaysia’s sovereignty, national security, and national interests. The Sulu case exemplified a serious violation of the nation’s sovereign immunity.
“The Government of Malaysia will take all necessary measures to combat this blatant exploitation and abuse of the international arbitral system and will seek to recover the costs incurred from dealing with these claims using public resources,” he stated.
One arbitration case in Luxembourg remains to be heard in September.
