THE Attorney-General’s Chambers (AGC) should disclose the contents of Malaysia’s application to suspend a US$14.9 billion (RM62.5 billion) award to be paid to the descendants of the Sulu Sultanate, prominent lawyers said.

According to the lawyers, it was crucial the AGC reveals the extent of the stay order and expected finality to the issue, because it is of public interest.

They also asked what measures were taken to set aside the award and the next course of action.

Lawyer Mohamed Haniff Khatri Abdulla told The Malaysian Insight that the AGC needs to explain the scope of the suspension order granted by the Paris Court of Appeal.

He said the request is for the AGC to specify the content of the stay order.

“Does it only stay the Luxembourg execution (of judgment) or does it also stay the final award on February 28?

“The AGC needs to explain to the public if we are vulnerable for execution in any other jurisdiction,” Haniff said about whether Malaysia’s assets overseas are vulnerable to claim.

He said Malaysia could be vulnerable, depending on the scope of its July 12 filing.  

“So, if the scope is to stay the execution of the February 28 award, then we are not vulnerable in any of the states.

“However, if it is just to stay the execution in Luxembourg, then we could still be vulnerable.”

On July 13, Minister in the Prime Minister’s Department (Parliament and Law) Wan Junaidi Tuanku Jaafar announced that the Paris Court of Appeal had granted the stay.

In February, a French arbitration court instructed the government to pay US$14.9 billion to the descendants of the Sulu Sultanate following a claim made by Spanish arbitrator Gonzalo Stampa.

Wan Junaidi said the basis of the decision of the court was that the final award would affect the immunity of Malaysia’s sovereignty.

“The suspension order was the result of various actions taken by Malaysia to ensure that the interests and sovereignty of the country were always protected and preserved.

“As a result of the suspension order issued on July 12, the final award cannot be enforced in any country until the final decision by the Paris court regarding the application for cancellation of the final award made by the government of Malaysia,” he had said.

Haniff said that, despite the order covering any execution in any country, if the Sulu lawyers go elsewhere, then they may apply for an award and Malaysia will have to defend itself in that jurisdiction.

He also said the AGC needs to explain the date of the final application to set aside the whole arbitration proceedings and the award.

“This is so that the public will know the finality.

“Our vulnerability depends on the scope of the order and the awareness of the other countries.

“Even so, it is not like our assets overseas are vulnerable. Pre-emptive action can be taken by Wisma Putra.

“What we need to know is the scope of the order and send it to all our high commissions for their information.”

Last month, the heirs of a late Sulu sultan seized two Luxembourg-based subsidiaries of Petronas: Petronas Azerbaijan (Shah Deniz) and Petronas South Caucasus.

The companies managed the national petroleum giant’s gas interests in Azerbaijan and could be worth, according to news reports, more than US$2 billion.

The move was part of legal efforts launched in 2017 by the Sulu heirs seeking compensation to “territories and lands” in 1878 under the so-called the 1878 Grant.

AGC needs to explain finality of award

Malaysian Centre for Constitutionalism and Human Rights director, Fahri Azzat, said if the AGC got a stay of action, then he does not believe it is enforceable outside the country of origin.

“It would be strange if they asked for limited stay for the state (Luxembourg). I’m sure the AGC will have the experience to ensure that the stay is at the source,” Fahri said.

“I don’t believe that the award could be executed in other countries. I believe our lawyers would have covered all avenues to prevent the award from being filed elsewhere.

He said, given the public interest on this issue, the AGC has a duty to reveal the contents of the stay.”

Fahri, who is also a lawyer, said that in terms of finality, the AGC can provide some information on when it expects a resolution.

“The AGC should explain what needs to be done to reach that finality and how long that is likely to take.

“We need some explanation from the AGC on the issue. Regular updates should be given on this case as the level of public interest on this matter is high.”

Meanwhile, former attorney-general Tommy Thomas said the Sulu claims are “fraudulent and dishonest” and urged the current attorney-general to contest the claims.

Thomas, who was appointed during the Pakatan Harapan government, said it was unnecessary to form a task force to look into it.

“This is pre-eminently a legal dispute, so the attorney-general, as the chief legal adviser for the nation, should be left to defend Malaysia’s interests. It is currently in safe hands.  

“There is no need for a special task force or any other committee to be set up.  Further, the dispute has reached an advanced stage,” he said in a statement. – August 3, 2022.