[UPDATED] Putrajaya files bid to nullify RM63 bil award to Sulu Sultanate heirs

KUALA LUMPUR – Putrajaya has filed an application to nullify the final award obtained by heirs of the now defunct Sulu Sultanate in a French arbitration tribunal on March 3.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the application was submitted to ensure the decision could not be enforced and Malaysia does not have to pay the damages valued at RM62.59 billion.

The application added that the claim against the Malaysian government through an international arbitration tribunal is unlawful.

“This is because arbitrator Gonzalo Stampa’s appointment was nullified by the Madrid High Court on June 29 last year, invalidating all his previously issued awards, including the final award issued on February 28, 2022,” said the prime minister.

The Bera MP added that Stampa ignored the Madrid court’s decision and moved his arbitration office to Paris and continued the proceedings up until the final award.

He said that Putrajaya is firm with Sabah’s recognition by the United Nations as part of the Malaysian Federation since September 16, 1963.

“Malaysia remains committed to solving this issue swiftly. It must be stressed that Putrajaya will not budge an inch in order to protect the nation’s sovereignty and Sabah’s place in Malaysia.”

On February 28, Spanish news site La Informacion reported that Stampa issued an award totalling RM62.59 billion to the heirs of the defunct Sulu Sultanate in a Paris arbitration tribunal. 

This final award was based on the so-called violation of the 1878 agreement between Sultan Jamal Al Amam, Baron de Overbeck, and the British North Borneo Company’s Alfred Dent. 

The article said Stampa ruled that the 1878 treaty constituted a commercial “international private lease agreement” and that Malaysia breached the agreement by not paying the cession money. 

Malaysia was given three months to pay up or risk paying interest following the order.

Earlier this month, the Malaysian Foreign Affairs Ministry and Attorney-General’s Chambers (AGC) had issued a statement saying the Malaysian government does not recognise the claim.

In a joint statement, both the ministry and AGC said that Malaysia did not participate in the purported arbitration proceedings.

They said Malaysia has always upheld and has never waived its sovereign immunity.

The subject matter of the claim, they said, is not commercial in nature and thus cannot be subject to arbitration, while also noting that the 1878 Agreement contains no arbitration agreement. – The Vibes, March 18, 2022