KUALA LUMPUR, Feb 17 — The group of individuals claiming to be the heirs of the Sultan of Sulu are trying to distort the truth in a dispute relating to Sabah, minister Datuk Seri Azalina Othman Said said today.
Azalina criticised the actions of the self-styled Sulu "heirs" and their lawyers and stressed that Malaysia will continue to defend its rights against any of their attempts to grab Malaysia's assets.
"We again remind the public that the purported heirs and their counsels are trying to distort the truth before the media, just as they have done before the courts.
"This case concerns a genuine arbitral scandal that has undermined the two most fundamental institutions of the rule of law: respecting the law and obeying the courts, and Malaysia will spare no effort in defending its rights," the minister in charge of law and institutional reform said in a statement today.
Noting that several news outlets have reported on a purported new attempt by the alleged Sulu heirs in Luxembourg to seize assets belonging to Petronas, Azalina said Malaysia has not received formal notice of the alleged seizure orders.
"Consequently, this office is unable to confirm the correctness or accurateness of these media reports," she said.
While casting doubt on the purported new seizure bid, Azalina pointed out that the alleged Sulu heirs had already failed in their previous first attempt to seize Petronas's assets in Luxembourg.
Azalina pointed out that the Sulu heirs' bid to seize Malaysia's assets is based on the alleged arbitration award by Gonzalo Stampa --- whose appointment as arbitrator has been cancelled by the same court which appointed him initially.
"If they prove to be true, this would not be the first time that the purported 'Sulu heirs' attempt to seize Malaysia’s assets in Luxembourg on the basis of a purported final award rendered by Spanish lawyer whose appointment as arbitrator was nullified by the same court that had initially appointed him without hearing Malaysia.
"Rather, this alleged new attempt to attach assets would follow a first and failed attachment, which the Luxembourg courts recently lifted," she said, referring to the previously failed seizure order according to its legal term "attachment".
But if such a second seizure order does exist, Azalina said Malaysia will fight off such bids in the courts.
"As it has done to date after it is properly summoned, Malaysia will continue to defend its rights vigorously before the courts in order to ensure that this second attachment (if existent) is also promptly lifted by the Luxembourg courts just as the first attachment was lifted," she said.
Last February 28, Stampa gave his purported arbitration award — or "final award" — by ordering Malaysia to pay US$14.92 billion in compensation to eight individuals who claimed to be the heirs of the now-defunct Sulu Sultanate.
On January 24 this year, the District Court of Luxembourg decided to lift or set aside a seizure order on two Petronas subsidiaries and their assets. The seizure order was previously issued last July 11 upon request of the alleged Sulu heirs.
On January 30, Azalina said Malaysia is also currently challenging an ex parte Exequatur Order — or a May 18, 2022 order which recognised Stampa's purported arbitration award in Luxembourg — before the Luxembourg Court of Appeal.
Azalina had also explained the District Court of Luxembourg's decision to lift the July 11, 2022 seizure order on Petronas assets was due to the Sulu claimants' failure to reveal their real addresses which would hamper documents being served on them and enforcement of any potential judgment against them.
Malaysia continues to dispute the appointment of Stampa as arbitrator and also challenges the entire arbitration process and his award in favour of the Sulu claimants as invalid and illegal.
Malaysia's Foreign Affairs Ministry and Attorney-General's Chambers on March 2 stressed that the eight Sulu claimants' identities are doubtful and have yet to be verified.
The eight Sulu claimants were last year reported as comprising three retirees, three unemployed persons aged 51 to 70, one 54-year-old school administrator and a 70-year-old businessman, with litigation funding firm Therium also reported to be funding the Sulu claimants' legal and arbitration fees which have cost millions of US dollars.
Following recent news reports of the purported second seizure bid, Petronas in a brief statement today maintained that the Sulu claimants' action against its two Luxembourg subsidiaries is "baseless" and said it will continue to defend its legal position.
