KUALA LUMPUR – A petition by the heirs of the defunct Sulu sultanate for authorisation to seize assets owned by the Malaysian government and state-linked own companies is an abuse of court proceedings, said Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar.
He also labelled the attempt as an “opportunistic move” contrary to arbitration rules and norms stipulated under the New York Convention and the United Nations Commission on International Trade Law (Uncitral).
This follows reports from earlier today that the heirs are petitioning The Hague Court of Appeal to enforce the US$15 billion (RM67.5 billion) award granted to them by a French arbitration court in February.
“The Malaysian government believes that the order issued by the French court in February this year was disorganised and not in line with the law,” Wan Junaidi said in a statement today, warning that international stability will be jeopardised if the order obtained is enforced.
He added that the French arbitrators’ order is “void and not according to norms” since its recognition process had been transferred to France despite the Madrid Supreme Court having cancelled the appointment of an arbitrator and subsequent proceedings.
“Malaysia is proceeding with court proceedings in France and Spain to set aside and annul the order,” he said, adding that the government is confident that a conclusion that benefits Malaysia will be reached.
He noted that the government has enacted similar legal action in Luxembourg and is set to take related steps in Dutch courts.
“The government has undertaken proactive global strategies to prevent endeavours to snatch away Malaysian assets overseas by parties claiming to be Sulu sultanate heirs.
“Malaysia will never compromise or bow to any parties that manipulate and misuse an existing system for their own personal gain.”
In July, Wan Junaidi stated that Malaysia had received a stay on the US$15 billion (RM69.55 billion) award after an appeals court in Paris found that its enforcement could infringe on the country’s sovereignty.
The Sulu heirs are represented by lawyer Paul Cohen, who former attorney-general Tan Sri Tommy Thomas had taken aim at last month by suggesting that Malaysia apply for contempt of court or in personam orders against Cohen to put an end to his “court-shopping” on behalf of the Sulu claimants.
Adding that Malaysia can take similar actions against arbitrator Gonzalo Stampa who had disregarded the Spanish court’s decision to revoke his appointment, Thomas said that courts in Spain, France, and Luxembourg should have set aside the applications as there is no arbitration clause in the 1878 agreement.
The 1878 agreement was signed by then Sulu sultan Jamal Al Alam, then maharaja of Sabah Baron de Overbeck, and British North Borneo Company’s Alfred Dent.
On February 28, Stampa awarded US$14.92 billion to the Sulu claimants, while in June the bailiffs in Luxembourg had seized Petronas subsidiaries in the European country as part of the award.
Malaysia’s Foreign Ministry and Attorney-General’s Chambers had subsequently issued a statement on the government not recognising the claim, adding that Malaysia had not participated in the purported arbitration proceedings.
The issue came about after Malaysia stopped the annual payment of RM5,300 to the heirs following the 2013 incursion in Lahad Datu, Sabah, which was later revealed to be planned by an apparent heir of the Sulu sultan. – The Vibes, September 30, 2022
