KUALA LUMPUR – The government will not hesitate to take any form of action to defend the country’s sovereignty in its legal battle with the purported heirs of the Sulu sultanate, including suing the eight Filipino claimants and their funder.
The government will also ensure the parties concerned pay all costs incurred by Malaysia as a result of the territorial claim related to Sabah, said minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said.
Azalina, who is in charge of law and institutional reforms, said the government has reason to believe that the claim was financially motivated and funded by litigation funders not based in Asia.
She said the move was aimed at making profit as the funders would take a 25-30% cut from any amount awarded. “And that is why I want to issue a reminder that this is a very serious attack against the country’s sovereignty,” she added.
“It is not seen from an element involving arms, but an element to bankrupt Malaysia with an award amounting to US$15 billion (RM68.9 billion),” she told the media at the World Trade Centre here today.
Azalina said Malaysia would fully oppose any movement and action seen as taking advantage of the situation and not compliant with international legal procedures.
She said the government has identified the litigation funder, which she added is a well-known company based out of Asia. Further action is being taken regarding the matter, Azalina said.
On the Paris Court of Appeal’s decision yesterday to uphold Malaysia’s challenge against an arbitration award granted in favour of the purported heirs, Azalina said although it was a “partial award”, it was still important considering that the French judge referred to the most important essence of why Malaysia opposed the claim.
“The Malaysian government has been very consistent in saying that the 1878 agreement does not exist in international arbitration…,” she said, referring to an alleged deal made by a British trading company to lease Sabah to the ancestors of the purported heirs.
She added that Malaysia had ceased paying cession money to heirs of the Sulu sultanate due to the violence in Lahad Datu in 2013.
“If the violence had not happened, the payments might have continued. This shows that the facts presented by Malaysia are very consistent. The decision of the French court confirms that the arbitration clause does not actually exist,” she said.
The Paris Court of Appeal yesterday upheld Malaysia’s challenge against the partial award rendered on May 25, 2020 by Spanish arbitrator Gonzalo Stampa in the case filed by eight citizens of the Philippines, who are purported heirs of the long-defunct Sulu sultanate.
The group was reported to have taken legal action in the Spanish court to seek compensation for land in Sabah, which was allegedly leased by their ancestors to a British trading company in 1878.
They then took the matter to the purported arbitrator in 2019 and Stampa, who was appointed by the group of individuals, decided in their favour.
The arbitrator had issued a final award of US$14.9 billion against Malaysia and the nation had used all legal remedies to annul the award given by Stampa to claimants in courts in Spain, France, Luxembourg, and the Netherlands.
On March 14 this year, the Paris Court of Appeal upheld the stay order obtained by the Malaysian government in France on July 12, 2022, against the enforcement of the award.
Therefore, the suspension order obtained by Malaysia regarding the enforcement of the award is maintained. – Bernama, June 7, 2023
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