KUALA LUMPUR (Politics Now!) - Malaysia's law minister has hailed a legal victory in the French court over a claim by 'Sulu heirs' on its diplomatic buildings in Paris as "historical".
"The outcome of the decisions on Nov 6 and 9, ends the Sulu claimants’ efforts to seize Malaysia-linked assets throughout the world. They failed in attempts to touch assets that belong to Malaysia and we will not compromise on illegal and baseless claims,” Azalina Othman told an online press conference.
Eight Filipino citizens - claiming to be the legal heirs of the Sulu Sultanate, a remote region in the Philippines - had launched efforts to seize Malaysia-linked assets throughout the world after controversially winning US$14.92 billion (RM69.88 billion) as damages for non-payment of an annual cession fee.
The annual payment is rooted in history and relates to compensation for land in Sabah leased to a British trading company in 1878. Malaysia had stopped the payment after a group of Sulu militants stormed the Lahad Datu area in Sabah in 2013.
On Nov 6, the French court quashed its prior ex-parte order authorizing a statutory mortgage be registered on three diplomatic buildings owned by Malaysia in Paris. It also ordered the claimants to pay 100,000 euros (RM502,000) in costs to Malaysia.
"The judge considered that it did not have the power to authorise such a measure and ordered the Claimants to pay 15,000 euros to Malaysia as cost," said Azalina, adding that the Sulu heirs have now agreed to remove the statutory mortgage.
STAMPA FACES THE HEAT
Malaysia has also lodged a complaint against the Spanish arbitrator Gonzalo Stampa, who awarded the claim to the Sulu heirs in 2022. Stampa is due to face charges in the Madrid courts on December 11.
According to Azalina, Stampa had made a "fraud award" as the High Court of Justice of Madrid, which appointed him as the arbitrator, had already annulled his judicial appointment in June 2021.
Stampa then moved his seat of arbitration to Paris in February 2022, where he made the award against Malaysia.
“Despite the decision, Stampa continued to hear the arbitration case, even though he lacked the authority to act as an arbitrator and should have immediately put an end to the purported arbitration proceedings,” said Azalina.
“That is the reason why the Malaysian government finds the criminal case against Stampa on Dec 11 very important, because it can annul all the awards made by Stampa.”
Apart from the diplomatic assets in France, the Sulu group had reportedly tried to seize the assets of Malaysian petroleum company, Petronas in Luxembourg and the Netherlands.
However, The Hague Court of Appeal on June 27, dismissed the Sulu group's application to recognize and enforce the final award in the country.
"The court dismisses the requests of the Filipino nationals" to demand to execute the arbitration award, the Dutch judgment had said.
Written by Stan Lee, Politics Now!
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