SPANISH arbitrator Gonzalo Stampa, who controversially ordered Malaysia to pay US$14.92 billion (RM69.77 billion) to self-claimed heirs of the defunct Sulu sultanate, will face charges in the Madrid Court on December 11.

Law and Institutional Reforms Minister in the Prime Minister’s Department Azalina Othman Said said the court had carried out its own investigations and filed charges against Stampa. If found guilty, Stampa faces a jail sentence and fine.

“The date for the hearing was set following persistent and aggressive demands by the government of Malaysia. This is not a civil case, but Stampa is facing criminal charges,” she told a press conference, which was held online.

“This is the main factor that offers consistency in Malaysia’s claim that the award by Stampa as the international arbitrator is an illegal act that is baseless.”

Azalina is now in London, to meet lawyers appointed by the Malaysian government to challenge the third phase of the territorial claims by eight Philippine citizens who claim to be the legal heirs of the Sulu sultanate as well as ensure a comprehensive defeat for the claimants and their funders.

Azalina said the controversial award by Stampa, ordering Malaysia to pay US$14.92 billion, is seen as “fraud award” because the High Court of Justice of Madrid, which had appointed him as the arbitrator, had in June 2021, annulled Stampa’s judicial appointment.

“But despite the decision, Stampa continued to hear the arbitration case, although he lacked the authority to act as an arbitrator and should have immediately put an end to the purported arbitration proceedings,” she said.

Stampa then moved his seat of arbitration to Paris in February last year where he made the award against Malaysia.

“That is the reason why for the Malaysian government, the criminal case against Stampa on December 11 is very important because it can annul all the awards by Stampa,” Azalina said.

She said the government will be represented during the proceeding because Malaysia is the complainant.

A guilty finding will assist Malaysia in its claim that the US$14.93 billion award is unlawful.

Malaysia is in the process of annulling the award by Stampa to eight individuals who claimed to be the heirs of the defunct Sulu sultanate.

On November 6, the French Court had annulled the order of rising of statue to be mortgaged against a Malaysian diplomatic building in Paris by the group.

Azalina had said the French Court recorded the withdrawal of claims to seize assets (Malaysia’s diplomatic building) by the Sulu group.

“The outcome of the decisions on November 6 and 9 ends the Sulu claimants’ efforts to seize Malaysia-linked assets throughout the world,” she said. – Bernama, November 9, 2023.