KUALA LUMPUR, April 19 — Malaysia has made its case before the Hague Court of Appeal in the application by a group of Sulu ‘heirs’ to enforce the purported Final Award in their attempts to seize state-owned assets in the Netherlands, a special secretariat said today.
In a statement today by Malaysia’s special secretariat dealing with the Sulu claimants’ matter, it gave updates on Malaysia’s success so far in getting the Dutch courts to block the purported Sulu heirs from enforcing a US$14.9 billion (RM66 billion) arbitration award obtained in February 2022.
Both the Malaysian government and the claimants had argued their case before the Hague Court of Appeal on an application brought by the claimants for the recognition and enforcement of the purported arbitration award earlier this week.
“The proceeding was held on April 17 and the court heard submissions from both parties.
“Malaysia submitted its defence, that the purported Final Award is null and void; the claimants’ request is inadmissible and must in any case be denied,” the secretariat said on behalf of the Malaysian government.
Previously, on March 14, the claimant’s appeal bid to challenge the stay order was rejected by the Paris Court of Appeal and the stay order on the enforcement of Final Award remains in place.
In their bid to enforce the US$14.9 billion arbitration award, the purported Sulu heirs had attempted to seize Malaysia’s oil firm Petronas’s assets in Luxembourg, assets in the Netherlands, and have reportedly also eyed the Malaysian embassy’s buildings in Paris, France.
In its statement today, the secretariat reiterated the country’s stance in that there is no arbitration agreement to provide any basis for any purported arbitration; and the commencement of a commercial arbitration against any matter which casts a bearing on sovereignty is disingenuous and a blatant abuse of international commercial arbitration process.
“Malaysia is committed to safeguarding its sovereignty and to uphold the sanctity of international commercial arbitration process and lay bare the claimants’ frivolous attempts to enforce a sham award that is null and void.
“This is an attempt to hold a sovereign state to ransom, and the continued existence of the award tarnishes the reputation of the globally respected arbitration system.
“Malaysia denounces this attempt to pervert the rule of law, does not recognise the alleged legitimacy of the purported arbitral award and is litigating across Europe to ensure that this scam is exposed, and the award is overturned,” it said.
Previously, Spanish arbitrator Gonzalo Stampa had carried out arbitration in France, and had on February 28, 2022, decided that Malaysia should pay US$14.92 billion to the group of eight Sulu claimants who were claiming compensation over Sabah. This arbitration decision by Stampa is also known as the final award.
But Malaysia has argued that the entire arbitration including the US$14.9 billion by Stampa is invalid and illegal and has been going to the courts in various countries to challenge the arbitration and to prevent it from being enforced.
For more on the history of the case and details on the arbitration, click here for Malay Mail’s summary: 10 things about: How the alleged Sulu heirs got a US$14.9b order against Malaysia and also go to the Malaysian government’s website.
