Spanish arbitrator Gonzalo Stampa, who controversially ordered Malaysia to pay US$14.92 billion (approximately RM70 billion) to the self-claimed heirs of the defunct Sulu Sultanate, will face charges in the Madrid Court on Dec 11.
Minister in the Prime Minister’s Department (Law and Institutional Reforms) Azalina Othman Said said the court carried out its own investigation and filed charges against Stampa and if found guilty, he faces jail and a fine.
“The date for the hearing was set following persistent and aggressive demands by the government of Malaysia. This is not a civil case but Stampa is facing criminal charges.
“This is the main factor that offers consistency in Malaysia’s claim that the award by Stampa as the international arbitrator is an illegal act that is baseless,” she told members of the media via a press conference held online.
Azalina is now in London, to meet lawyers appointed by the Malaysian government to challenge the third phase of the territorial claims by eight Philippine citizens who claim to be legal heirs of the Sulu Sultanate, as well as to ensure a comprehensive defeat for the claimants and their funders.
According to her, the controversial award by Stampa (above) is seen as a “fraud award” because the High Court of Justice of Madrid which appointed him as the arbitrator in June 2021, annulled Stampa’s judicial appointment.
“But despite the decision, Stampa continued to hear the arbitration case although he lacked the authority to act as an arbitrator and should have immediately put an end to the purported arbitration proceedings.
“Stampa then moved his seat of Arbitration to Paris in February 2022 where he made the award against Malaysia.
“That is the reason why, for the Malaysian government, the criminal case against Stampa on Dec 11 is very important because it can annul all the awards by Stampa,” she said.
Azalina added that the Malaysian government will be represented during the proceeding because Malaysia is the complainant.
A guilty finding will assist Malaysia in its claim that the award is unlawful.
Annulling the award
Malaysia is in the process of annulling the US$14.9 billion awarded by Stampa to eight individuals who claimed to be the heirs of the defunct Sulu Sultanate.
On Nov 6, the French Court annulled the order for a statutory mortgage to be registered against Malaysian diplomatic buildings in Paris.
Azalina said the French Court recorded the withdrawal of claims to seize assets (Malaysia’s diplomatic buildings) by the Sulu group.
“The outcome of the decisions on Nov 6 and Nov 9, ends the Sulu claimants’ efforts to seize Malaysia-linked assets throughout the world.
“They failed attempts to touch on assets that belong to Malaysia and we will not compromise illegal and baseless claims.”
Previously, the purported heirs filed for arbitration proceedings in Spain to seek billions of US dollars from Malaysia over Sabah and a court in Madrid, Spain in March 2019 appointed Gonzalo Stampa to be the arbitrator for case.
- Bernama
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