Sulu claim: Arbitrator's dodgy award will be challenged, says minister

PARLIAMENT | Putrajaya said it will challenge any attempts to enforce the US$14.92 billion (RM62.6 billion) "final award" by a Spanish arbitrator to the Sulu sultanate's purported descendants.

Law Minister Wan Junaidi Tuanku Jaafar today explained to the Dewan Rakyat that the "final award" was illegitimate and the arbitration proceedings were invalid.

Putrajaya's first course of action, said Wan Junaidi, was to invalidate Gonzalo Stampa as the arbitrator through the Spanish courts on June 29, 2021.

However, the claimants, on Sept 29, 2021 took the matter to French courts who, unaware of the Spanish court's decision, appointed Stampa as the arbitrator for the same matter.

On that same day, Stampa issued an "exequatur order", which legitimised a Partial Award which he issued in Spain on May 25, 2020 - which had already been invalidated by the Spanish courts.

On Dec 16 last year, the Malaysian government filed an application to the Spanish court of appeal to set aside the "exequatur order". This matter has yet to be resolved by the courts.

Regardless, Stampa issued the "final award" on Feb 28.

Gonzalo Stampa

Since Stampa's position as arbitrator is illegitimate and in view of the decision obtained at the Spanish court, Wan Junaidi said Malaysia cannot recognise the arbitration proceedings and "final award".

"The government has never remained silent and has taken the necessary action to ensure our sovereignty through legal action taken in Madrid and Paris.

"The government is always prepared to challenge the enforcement of the (purported) final award under the New York Convention if the claimants attempt to do so," he said.

Malaysia is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).

Arbitrators, in turn, are appointed by courts upon agreements from parties seeking arbitration. In this matter, Malaysia refused to participate.

Based on Stampa's "final award", Malaysia was repeatedly informed of the arbitration proceedings but refused to acknowledge nor pay the US$1.25 million deposit as an advance for the arbitrator.

Stampa also noted that Malaysia has "systematically sent intimidatory communications addressed to claimants and the sole arbitrator, often containing threats."

"Malaysia has self-servingly sought an anti-suit injunction (Malaysian government vs Nurhima Kiram Fornan & Ors [2020]) in the courts of its own territory, which has led to further intimidatory and coercive visits to, and ex parte communications with, the sole arbitrator."

The claimants are purportedly descendants of the Sulu sultanate. They are making the claim after Malaysia ceased RM5,300 annual payments to their family after 2013.

Soldiers loyal to the Sulu sultanate had invaded parts of eastern Sabah in 2013, killing 10 Malaysian security personnel. - Mkini