KUALA LUMPUR, March 10 — Minister in Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar reiterated today that Putrajaya will not be recognising an arbitration that awarded self-styled Sulu Sultanate heirs US$14.9b (RM62.6 billion) over Sabah.
The minister said the final award issued by Spanish arbitrator Gonzolo Stampa was invalid and made unilaterally and unlawfully, as his appointment has been revoked by the Madrid High Court on June 29, 2021.
“Since his appointment has been cancelled and no longer valid under the law, the government is not recognising the demand and the arbitration proceedings,” he said in Dewan Rakyat here, referring to Stampa.
Wan Junaidi was replying to Warisan’s Papar MP Ahmad Hassan who asked if the government, through the Attorney General’s Chambers, has sent a representative or appointed a lawyer in France for the matter in question.
He said the government had previously filed a criminal complaint against Stampa to the Attorney General of Spain on December 14, 2021 in protest of his non-compliance with the decision of the Madrid High Court, irregularity of process, unfairness as well as contempt for the rule of law.
“The Malaysian government has also filed an appeal to void the Exequatur Order dated September 29, 2021 as well as an application to suspend the execution of the Exequatur Order. On December 16, 2021, the French Court of Appeal allowed the application of the Malaysian government for suspension of the Exequatur Order issued on September 29, 2021.
“The appeal filed by the government has not yet been decided by the Court of Appeal in Paris, France,” he added.
Ahmad, however, further reiterated the government’s seeming lack of attention on the matter, to which Wan Junaidi said the government does not recognise the agreements signed between Baron de Overbeck and Alfred Dent on behalf of the North Borneo Company with Sultan Mohamet Jamal Al Alam (Sultan of Sulu) in 1878.
Earlier, Wan Junaidi in his response said that there were two agreements signed on Jan 20, 1878, between the Sultan of Sulu and Overbeck and Dent.
“The agreements were signed to protect the interests of their (Overbeck’s and Dent’s) company in Sabah. I want to emphasise here, the word, company,” he said.
Wan Junaidi reminded that the government, in wake of the invasion by Sulu militia into Kampung Tanduo, Lahad Datu, Sabah which took place on February 12, 2013, had stopped handing over charity money to the heirs of the Sulu Sultanate.
He explained that the law firm representing the Filipinos claiming to be the heirs of Sulu (plaintiff) applied for a renegotiation of the payment for courtesy money under the 1878 agreement and filed an application to the Superior Court of Justice in Madrid, Spain to appoint an arbitrator on January 31, 2018, and the court of Madrid decided to appoint an arbitrator — Stampa was appointed on May 22, 2019.
He added that on July 30, 2019, a notice of arbitration was submitted to the Malaysian government through the foreign ministry with estimated claims in excess of US$32 billion (RM133.93 billion).
“I would like to emphasise that the government is not silent even if it does not recognise the claim.
“The government has implemented appropriate legal action, firstly the case has been filed in the High Court of Sabah in which the plaintiff (Sulu heir) did not attend the proceedings. The Sabah High Court on January 14, 2020 ruled the 1878 Agreement does not contain any arbitration provisions, Malaysia did not once set aside the immunity of its sovereignty and the arbitrator had no jurisdiction to settle the matter raised.
“Secondly, the decision of the Sabah High Court has been brought to the Court of Madrid to be recognised and enforced for discontinued arbitration proceedings in Spain.
“Following that, the partial award on jurisdiction was issued by the arbitrator (Stampa) on May 25, 2020 has been set aside and on June 29, 2021, at the request of the Malaysian government, the Court of Madrid had void the appointment of Stampa as the arbitrator and all actions and decisions made by him is void,” he said.
He said the Madrid court on October 13, 2021, ruled that the partial award on jurisdiction issued by Stampa dated May 25, 2021 is null and void.
However, Wan Junaidi said the plaintiff has brought the partial award on jurisdiction to France before October 13, 2021 to bypass the decision of the Madrid Court.
“On September 29, 2021, the France Court, without knowing the decision of the Madrid Court which had voided the appointment and decision of Stampa, had issued the Exequatur Order recognising partial award on jurisdiction dated May 25, 2020.
“Based on the Exequatur Order, Stampa had moved his arbitration seat from Madrid to Paris to continue the arbitration proceedings,” he added.
According to Wan Junaidi, the plaintiff had on November 5, 2021, filed an application of a constitutional appeal to the Constitutional Court in Spain to overturn a decision of the High Court of Madrid on June 29, 2021.
On March 1, it was reported that an arbitration court in France ordered Malaysia to pay US$14.9 billion (RM62.6 billion) to the descendants of the Sulu sultan, which was said to be based on the alleged violation of payments of cession money under a 1878 agreement signed by Sultan Jamal Al Alam, among others.
Malaysia had stopped paying the heirs to the Sultan Sulu their annual RM5,300 cession money since the 2013 Lahad Datu armed incursion.
