Another victory for Malaysia against self-proclaimed Sulu heirs


Ravin Palanisamy

Law and Institutional Reforms Minister Azalina Othman Said says Malaysia will continue defending its sovereignty against threats such as the claim over Sabah by purported Sulu Sultanate heirs. – The Malaysian Insight file pic, February 2, 2023.

THE Spanish Constitutional Court has rejected the extraordinary constitutional appeal filed by Sulu Sultanate heirs (claimants) against the annulment of Gonzalo Stampa’s appointment as arbitrator in the so-called Sulu dispute, Azalina Othman Said said today.

The law and institutional reforms minister said Putrajaya received official confirmation the constitutional appeal filed by the claimants was rejected.

“As a result, the annulment of Stampa’s appointment (which was already final and binding) has been confirmed by the Spanish Constitutional Court.

“The Spanish Constitutional Court, therefore, reaffirms Malaysia’s position,” Azalina said in a statement today.

On June 29, 2021, the High Court of Justice of Madrid (HCJM) issued a decision that annulled the unlawful judicial appointment of Stampa to act as an arbitrator.

The HCJM was the Spanish court that had initially appointed Stampa in 2019 (without hearing Malaysia following invalid service).

As a result of this decision, the HJCM retroactively invalidated Stampa’s appointment and nullified all his actions as a purported arbitrator (hereby termed “annulment decision”), including the alleged “preliminary award” he had rendered in Madrid.

The decision of the HCJM was final, binding and directly enforceable and can only be subject to an extraordinary constitutional appeal before the Spanish Constitutional Court if exceptional circumstances are met.

The claimants complied with the annulment decision of the HCJM and took steps to appoint a different arbitrator. As a consequence, they recognised that Stampa was not an arbitrator.

On November 5, 2021, the claimants filed a constitutional appeal seeking that the June 29, 2021, decision be overturned. This constitutional appeal did not stay the effects of the annulment decision.

The Spanish Constitutional Court has rejected the constitutional appeal filed by the claimants because they had withdrawn their claim to appoint an arbitrator following the annulment decision and, as a result, had voluntarily abandoned the proceedings that served as the basis for their constitutional appeal.

“This decision confirms the legal position that Malaysia has asserted since the dispute began, effectively ending the claimants’ judicial strategy in Spain.”

As Stampa’s judicial appointment has been annulled in Spain, he lacks the authority to act as an arbitrator and should have immediately put an end to the purported arbitration proceedings.

“Instead, and in open defiance of the June 29, 2021, decision of the HCJM (the same court that had initially appointed him as an arbitrator), Stampa nevertheless chose to deliver an illegal and purported ‘final award’, granting the claimants US$14.92 billion (RM63.33 billion) in compensation for the territory of Sabah,” Azalina said.

Malaysia subsequently availed itself of all available legal remedies to invalidate Stampa’s two purported awards.

The French courts have stayed the enforcement of the purported final award rendered by Stampa in France, pending the judicial outcome of Malaysia’s action to set the award aside on the basis that enforcement may likely threaten Malaysia’s sovereignty over the territory of Sabah.

Furthermore, Luxembourg courts have recently set aside the attachment obtained by the claimants on the basis of Stampa’s two purported awards.

The Spanish courts have now further confirmed the annulment of Stampa’s unlawful appointment as an arbitrator, finding that he never had any legal authority to act in that capacity nor to issue any awards, and that therefore the awards he issued are null and void.

This recent decision by the Spanish Constitutional Court vindicates Putrajaya’s policy to vigorously defend Malaysia in every court and forum, exercising all its powers, rights and resources to ensure that Malaysia’s interests, sovereign immunity and sovereignty are protected at all times, Azalina said. – February 2, 2023.


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