The French Supreme Court today delivered a landmark ruling by fully dismissing the appeal filed by the alleged heirs of the former Sulu sultanate, according to Datuk Seri Azalina Othman Said, the Minister in the Prime Minister’s Department for Law and Institutional Reform.
In a statement on Facebook, Azalina celebrated this as a historic achievement for Malaysia. The ruling underscores that the legal basis for the so-called Final Award an order for Malaysia to pay a staggering $15 billion is unrecognized under French law. This decision effectively discredits the claim and undermines any legal foundation for the massive compensation demand.
Azalina further elaborated that, following this Supreme Court decision, the Paris Court of Appeal is expected to proceed with annulling the disputed Final Award issued by arbitrator Dr. Gonzalo Stampa. She emphasized that the matter is likely to be permanently resolved in favor of Malaysia, bringing relief to the Malaysian government and its citizens.
This development, Azalina stated, is not only a victory for Malaysia but also a significant moment for the rule of law. She described it as a victory for international arbitration, reinforcing its credibility as a fair and impartial mechanism for resolving disputes. She expressed hope that this ruling would help maintain the integrity and sanctity of arbitration, ensuring it remains a reliable and lawful avenue for resolving international conflicts.
In her remarks, Azalina extended her gratitude to Prime Minister Datuk Seri Anwar Ibrahim for his steadfast support and confidence in Malaysia’s legal defense against the claim. She praised his trust and commitment, which has fortified the ongoing efforts to uphold Malaysia's sovereignty and protect its financial resources.
The dispute traces back to 2019 when eight individuals from the Philippines, claiming to be heirs of the now-defunct Sulu sultanate, initiated arbitration proceedings in Spain to demand financial compensation from Malaysia. They argued that Malaysia owed them billions due to historical agreements related to Sabah. In March 2019, a court in Madrid appointed Dr. Stampa as arbitrator for the claimants’ case, giving their claims a legal platform.
However, on February 28, 2022, Stampa controversially ruled in favor of the Sulu claimants, awarding them $14.9 billion. This decision was later deemed illegal, as it was issued even after the Spanish court had revoked Stampa’s appointment. Despite the annulment, the claimants pursued enforcement of the award, attempting to seize Malaysian assets, including Petronas holdings in Luxembourg, additional assets in the Netherlands, and even diplomatic assets in France.
On May 17 this year, Malaysia received notification from the Madrid Court of Appeal, which rejected Stampa’s appeal and upheld a penalty against him, consisting of a six-month prison sentence and a one-year suspension from practicing as an arbitrator. This action confirmed that Stampa’s rulings were both unauthorized and legally baseless.
The current Malaysian administration, led by the MADANI Unity Government, has proactively fought to defend Malaysia against these claims. With this latest victory in France, Malaysia has taken a critical step in safeguarding its sovereignty and economic interests from what it views as unfounded and illegitimate financial demands.
Source: Malay Mail
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