A LUXEMBOURG court has set aside an attachment order by a group of Sulu claimants against Malaysian assets on January 24, Law and Institutional Reform Minister Azalina Othman Said said.

She said this was a significant victory for Malaysia against the heirs of the Sulu sultanate on their claims.

The original attachment order was granted to the claimants on July 11 last year. 

“The now set-aside attachment was based on two purported arbitral awards delivered by an unlawfully appointed arbitrator, Dr Gondoza Stampa, who purportedly granted the claimants US$14.92 billion (RM63.34 billion). 

“Malaysia has consistently refused to recognise the legitimacy of the purported arbitration orchestrated by the claimants,” she said in a statement. 

Former law minister Wan Junaidi Tuanku Jaafar previously said Malaysia will prevent any attempt by the heirs of the Sulu sultanate to enforce a US$15 billion arbitration award against the country.

Malaysia does not recognise claims made by the heirs, and had rejected the final award issued by Stampa for allegedly violating the 1878 Agreement between Sulu Sultan with Baron de Overbeck and Alfred Dent, in which the Sulu sultan had handed over in perpetuity his territories in North Borneo, now Sabah.

In return, the sultan and his heirs were to be given a cession payment of RM5,300 a year. 

However, the government ceased payments following the attack on Lahad Datu in 2013.

Azalina said that Malaysia had availed itself of all available legal remedies to invalidate the appointment of Stampa and his purported “awards”.

She said, as a result, the Spanish court that initially appointed Stampa retroactively invalidated his appointment and nullified the alleged “preliminary award” he rendered in Madrid. 

“The French courts have (also) stayed the enforcement of the purported ‘final award’ rendered by Stampa in France, pending the outcome of Malaysia’s action to set aside the final award. 

“Malaysia had applied immediately to the District Court of Luxembourg to obtain interim relief in the form of the lifting of the attachment.”

Azalina said the hearing took place on December 5 before the district court judge, where the attachment was set aside.

She added that this decision vindicates the government’s policy to vigorously defend Malaysia in every forum.

This, she said, was to ensure that Malaysia’s interests, sovereign immunity and sovereignty are protected and preserved at all times as the government will spare no effort to this end. – January 26, 2023.