THE country has won the battle to set aside a Paris Arbitration Court’s purported award of US$14.94 billion to the eight citizens of the Philippines, who are purported heirs of the long-defunct Sultanate of Sulu (claimants), reported english daily The Star.

The Paris Court of Appeal gave its judgement in favour of Malaysia during its hearing in Paris today.

Attorney for the Sabah government Tengku Fuad Ahmad said the setting aside of the award would effectively make controversial Spanish Arbitrator Gonzalo Stampa’s 2021 award in favour of the Sulu heirs not enforceable.

“Malaysian assets are safe. They cannot enforce his award, which has been set aside,” said Fuad.

Legal and Institutional Reform Minister in the Prime Minister’s Department Azalina Othman Said, in a statement today said, “Malaysia trusts that today’s decision by the Paris Court of Appeal will put an end to the efforts of the claimants and their funder, Therium, to enforce the unlawful awards and thereby extract windfall damages from Malaysia.”

The Paris Court of Appeal granted Malaysia’s application based on Article 1520,1 of the French code of civil procedure declaring that Stampa’s appointment as arbitrator to be incompetent.

It reversed the order of the President of the Paris Court of Justice on September 29, 2021, granting execution of the award rendered in Madrid on May 25, 2020 by Stampa.

Stampa, who ignored a decision by a court in Spain to stop the Sulu arbitration case in Madrid in 2020, had moved his arbitration to Paris where he awarded US$14.94 billion to the Sulu claimants.

Spanish authorities are currently taking criminal action (contempt of court) against Stampa for ignoring the ruling to stop the arbitration case.

Malaysia had obtained a stay order on July 12, 2022 for the enforcement of the purported final award. It also maintains that the arbitration instituted by the Sulu claimants was without legitimate basis.

Malaysia’s argument for the setting aside of the award was that it would likely affect its territorial sovereignty.

The case is seen as exceptional among arbitrators as Stampa’s award of nearly US$15 billion by a single arbitrator was seen as shocking and unheard of.

The purported Sulu heirs pursuing the case are Nurhima Kiram Fornan, Fuad A Kiram, Sheramar T Kiram, Permaisuli Kiram-Guerzon, Taj-Mahal Kiram-Tarsum Nuqui, Ahmad Narzad Kiram Sampang, Jenny KA Sampang and Widz-Raunda Kiram Sampang. – June 6, 2023.