7-6-2023 (KUALA LUMPUR) Datuk Seri Azalina Othman Said has announced a significant triumph for Malaysia in the Paris Court of Appeal against the self-proclaimed heirs of the defunct Sulu Sultanate. The Appeals Court has invalidated the Paris Arbitration Court’s purported award of US$14.94 billion (RM68.83 billion) to the claimants of the Sulu group, who assert their connection to Sultan Jamalul Kiram II.
“The Paris Court of Appeal has upheld Malaysia’s challenge against the partial award rendered on May 25, 2020, by Gonzalo Stampa in the case brought by the Sulu claimants,” stated the Minister in the Prime Minister’s Department (Law and Institutional Reforms).
Azalina added, “The decision means that the claimants cannot rely on the sham award in France for any purpose. The Paris Court of Appeal found that the arbitrator wrongly upheld his jurisdiction.”
The Minister further expressed that Malaysia is actively pursuing the annulment of the award to be officially recorded in a court decision. This development should result in the collapse of the claimants’ global enforcement efforts thus far.
Emphasizing the finality and binding nature of the decision, Azalina hailed it as a resounding victory for Malaysia’s ongoing legal remedies, which will ultimately lead to a comprehensive defeat for the claimants and their backers.
In February 2022, a French arbitration court, presided over by Stampa, directed the Malaysian government to pay US$14.94 billion to the descendants of the last Sulu Sultan. Malaysia subsequently challenged the arbitration order in both France and Spain. A French court issued a stay order on the award pending a decision on Malaysia’s claim that it encroached upon its sovereignty over Sabah.
“Stampa issued the ‘final award’ despite his appointment having been annulled by the same Spanish court that had previously appointed him, on the basis that Malaysia had not been properly served ahead of that appointment process,” explained Azalina.
“In defiance of Spanish court orders instructing him to cease acting as an arbitrator, in an unprecedented move, Stampa transferred the arbitration proceedings to France and issued his ‘final award’.
“Stampa’s persistent actions, defying Spanish court orders, have resulted in a significant abuse of the international arbitration process,” she added.
Earlier this year, a Spanish court nullified Stampa’s appointment. Currently, Spanish authorities are pursuing criminal action against Stampa for contempt of court due to his disregard for the ruling to halt the arbitration case.
Azalina expressed her appreciation to Prime Minister Datuk Seri Anwar Ibrahim for his unwavering support and trust in Malaysia’s pursuit to uphold its position. She also extended gratitude to Foreign Minister Datuk Seri Dr Zambry Abdul Kadir, Communications and Digital Minister Fahmi Fadzil, the Attorney General, the Sabah government, the Attorney-General’s Chambers, the Malaysian Embassy in France, the relevant ministries and agencies, and all other parties involved.
