Paris Court To Rule On Sulu Claim Annulment On Dec 9

KUALA LUMPUR, July 18 (Bernama) -- The Paris Court of Appeal has reserved its decision to Dec 9 on Malaysia’s application to annul the USD14.9 billion final award in the arbitration case filed by individuals claiming to be heirs of the long-defunct Sultanate of Sulu.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, in a statement, said the decision followed a hearing on July 7, during which the court concluded its hearing on the merits for the annulment of the final award in the case.

Azalina said during the hearing that the claimants had attempted to postpone the proceedings to enable them to respond to the written opinion of the  Public Prosecutor of France.

However, the court dismissed the request and proceeded with the hearing.

“In this context, Malaysia places its confidence in the Paris Court of Appeal’s process and decision in bringing a definitive end to the so-called Sulu Claimants’ illegal global enforcement efforts, similar to the positions adopted by the Spanish and Dutch courts,” Azalina said.

The government has also reiterated its stance on the need for transparency in third-party litigation funding mechanisms to prevent their misuse against sovereign nations.

“Malaysia at the same time continues to advance its efforts to promote a global framework that places transparency at the centre of third-party litigation funding, ensuring that a mechanism intended to promote access to justice is not misused as an instrument of lawfare against sovereign states.

“International arbitration must be protected from attempts to extort sovereign states under the guise of arbitration claims,” Azalina said.

She emphasised that the MADANI Government remained steadfast in defending Malaysia’s sovereignty and the integrity of international arbitration.

Previously, eight Filipino nationals claiming to be heirs of the now-defunct Sulu Sultanate filed arbitration proceedings in Spain to demand billions of US dollars from Malaysia over issues involving Sabah. In March 2019, a court in Madrid appointed Stampa as the arbitrator for the case.

On Feb 28, 2022, Stampa ruled in favour of the group and issued a final award of USD14.9 billion through an unlawful arbitration process, despite his appointment having already been annulled by a Spanish court.

Malaysia has since secured a series of legal victories in the case, including in November last year, when the French Supreme Court fully rejected the group’s legal challenge.

That historic win for Malaysia meant the original basis for the final award, which required Malaysia to pay USD14.9 billion in compensation, was not recognised under French law.

-- BERNAMA