THE government will be challenging a statutory mortgage issued by a French court to the Sulu claimants against three Paris properties owned by the Malaysian government, Putrajaya’s special secretariat on Sulu said today.

The secretariat, in a press statement, added it will summon the Sulu claimants to appear before the court and obtain the cancellation of the registration of the mortgage. 

It also said the statutory mortgage was not an enforcement measure per se.

“Malaysia maintains the premises of any diplomatic mission shall be inviolable and shall be immune from any search, requisition, attachment or requisition under the Vienna Convention on Diplomatic Relations.

“Malaysia maintains it does not recognise the purported commercial arbitration instituted by the Sulu claimants and will continue to vigorously defend its sovereignty through the appropriate legal forums,” it said.

The secretariat was responding to reports yesterday that French bailiffs attempted to enforce a seizure order on three Paris properties owned by the Malaysian government in a case linked to a US$15 billion (RM67.9 billion) court award to Sulu descendants.

The bailiffs tried to assess the properties on Monday following a court-issued seizure order in December, but Malaysian officials at the Paris embassy turned them away.

The secretariat said on Monday morning, individuals presenting themselves as bailiffs approached the Embassy of Malaysia located at 4 rue Bénouville, and the front of the staff residence at 48 and 50 rue de la Faisanderie. 

“They requested access into the respective premises to survey the premises, on the reason to obtain a description of the properties. 

“The diplomatic staff at the respective premises told the bailiffs this is not possible and turned them away. The bailiffs left shortly after. This was not an attempt to seize the properties.

“Preliminary legal advice rendered to Malaysia suggests the bailiffs were instructed by the Sulu claimants to obtain a description of the respective premises, on the basis of the statutory mortgage registered on the premises in November 3, 2022, on an authorisation order granted on an ex parte basis from the Paris Court of First Instance. 

“This is based on the purported partial award dated May 25, 2020 and the subsequent exequatur order dated September 29, 2021, which are being challenged by the government in various proceedings in France and other jurisdictions,” said the secretariat.

The Filipino heirs of the last Sultan of Sulu are seeking to enforce a US$14.9 billion award granted to them by a French arbitration court last year to settle a dispute with the Malaysian government over a colonial-era land deal.

Malaysia, which did not participate in the arbitration, maintains the process was illegal and has obtained a stay on the ruling in France.

The Paris properties are only the third set of Malaysian assets the heirs have publicly acknowledged going after. They have secured a seizure order for Luxembourg units of state oil firm Petronas and have sought permission from a Dutch court to seize assets in the Netherlands.

Last month, Luxembourg court bailiffs issued fresh seizure orders for two units of Petronas in a similar effort. The company has said the heirs’ actions were baseless and that it will continue to defend its legal position. – March 8, 2023.