THE Malaysian government hopes the Madrid Court will on December 11 punish Spanish arbitrator Gonzalo Stampa for “unqualified professional practice” after controversially ordering Malaysia to pay US$14.92 billion (RM69.53 billion) to the self-proclaimed heirs of the defunct Sulu Sultanate. 

Minister in the Prime Minister’s Department (Legal and Institutional Reform) Azalina Othman Said said she felt apprehensive about the trial because Stampa is a very influential individual in Madrid. 

The Madrid Court had carried out its own investigations and filed charges against Stampa and if found guilty, he faces a jail sentence and fine. 

The date for the hearing was set following persistent and aggressive demands by the government of Malaysia.  

“His father is a well-known person; in fact, he (father) was involved in the independence process of Spain, was involved in the revolution during that time and was also a lawyer, meaning his father and family were very influential people.  

“We hope there won’t be any negative pressure during (trial), because it was clear that he (Gonzalo Stampa) had breached the laws of Spain,” she told Bernama today. 

Azalina said she, the attorney-general, and a number of international officers would be in Spain to attend the trial. 

Azalina said the trial and sentence involving Stampa was important, especially because he awarded the said amount to the defunct Sulu Sultanate despite having ended his services as an arbitrator. He had continued to carry out international arbitration cases by shifting his base to different countries before deciding against the Malaysian government. 

“... the award, I do not refer to it as Sulu Award but ‘Sulu Fraud’; they go to many European countries, because in Europe when they see an award from the arbitrator, they regard is as legal. That is why we must revert back to Madrid where the first award was declared. 

“Therefore, we want the Madrid Court to sentence Stampa for the criminal charges and for the crime against the sovereignty of Malaysia, and this will be a victory because he moved to another country to persecute Malaysia,” she said.  

Azalina said the Sulu case is an example of Malaysia not being well-equipped with laws on the immunity of the country. 

Azalina added that Malaysia had become a victim of the “Sulu Fraud”, which involved fraudulent court processes involving international arbitration and fraud by the appointed arbitrator. 

“Because at that time, we were not ready, our country was also not stable. So, they took the opportunity. That is why we tabled the State Immunity Bill which aims to provide immunity to foreign countries from civil proceedings in Malaysian courts subject to the immunity restrictions provided, for first reading in Dewan Rakyat on November 29,” she said. – Bernama, December 5, 2023.