Kuala Lumpur: The government does not recognise the claims and arbitration proceedings by the French Arbitration Court in Paris which ordered Malaysia to pay approximately RM62.59 billion (US$14.92 billion) to the so-called descendants of the last Sultan of Sulu, the Dewan Rakyat was told on Thursday (March 10).
Minister in the Prime Minister's Department Datuk Seri Wan Junaidi Tuanku Jaafar (Parliament and Law) said this is because the appointment of the arbitrator, Dr Gonzalo Stampa, had been revoked and is no longer legally valid.
“On June 29, 2021, at the request of the government, the Madrid Court revoked the appointment of Dr Stampa as the arbitrator, and all actions and decisions made by Dr Stampa are null and void.
“The Madrid Court on Oct 13, 2021 ruled that the partial award on jurisdiction issued by Dr Stampa, dated May 25, 2021, is null and void," he said during the minister’s question time.
Wan Junaidi said this in reply to Ahmad Hassan (Warisan-Papar) who sought for the government to clarify the order by the French Arbitration Court for Malaysia to pay RM62.59 billion to the purported heirs of the last Sulu Sultan.
Wan Junaidi said the government had taken appropriate action to challenge the decision by filing a case in the Sabah High Court, but the claimant did not attend the court proceedings.
He said the Sabah High Court on Jan 14, 2020 ruled that the 1878 agreement did not contain any arbitration provision.
“Malaysia has never waived its sovereign immunity and the arbitrator has no jurisdiction to resolve the matters raised.
“The decision of the Sabah High Court was brought to the Madrid Court to be verified and enforced to stop the arbitration proceedings in Spain.
"Following that, the partial award on jurisdiction issued by the arbitrator on May 25, 2020 has been set aside," he said.
However, Wan Junaidi said the claimant had, before Oct 13, 2021, brought the partial award on jurisdiction to France to circumvent the decision of the Madrid Court.
He said on Sept 29, 2021, the French Court, unaware of the decision by the Madrid Court which had cancelled the appointment and the decision of Dr Stampa, issued an exequatur order recognising the partial award on jurisdiction, dated May 25, 2020.
Based on the exequatur order, he said, Dr Stampa had moved the arbitration seat from Madrid to Paris to continue the arbitration proceedings.
“In protest of the arbitrator's action on non-compliance with the Madrid Court’s decision, irregularities of process, injustice and contempt for the rule of law, the Malaysian government filed a criminal complaint against Dr Stampa with the Spanish Attorney General on Dec 14, 2021,” he noted.
He added that Malaysia had also filed an appeal to revoke the exequatur order and an application to stay its implementation.
On Dec 16, 2021, the French Court of Appeal allowed the Malaysian government's application for the stay of the exequatur order issued on Sept 29, 2021 pending an appeal.
Meanwhile, Wan Junaidi said the government is always sensitive and would challenge any enforcement action taken by the claimant at any time and anywhere to ensure the Malaysian government's interests are always protected.
Wan Junaidi also explained the series of events that led to the claims, namely the agreement signed between Sultan Mohamet Jamal Al Alam (Sultan of Sulu) and Baron de Overbeck and Alfred Dent on Jan 22, 1878, aimed at safeguarding their interests in Sabah.
However, he said after the invasion of the Sulu Sultanate in Kampung Tanduo, Lahad Datu, Sabah on Feb 1, 2013, the Malaysian government stopped handing over compassionate money to the descendants of the Sulu Sultanate.
“Following this, a legal firm representing a group of Filipinos claiming to be the heirs of the last Sulu Sultan applied for renegotiation of the compassionate money payments under the 1878 agreement and filed an application with the Superior Court of Justice in Madrid, Spain (the Madrid Court) to appoint an arbitrator on Jan 31, 2018.
“The Madrid Court then appointed Dr Stampa as the arbitrator on May 22, 2019.
“On July 30, 2019, a notice of arbitration was submitted to the government of Malaysia through the Ministry of Foreign Affairs with an estimated claim exceeding US$32 billion,” he said.
