Malaysia seeks dismissal of Sulu bid to enforce final US$14.9 billion award

Malaysia has submitted its defence that the Sulu claimants’ application for the recognition and enforcement of a purported arbitral award of US$14.9 billion (RM62.59 billion) issued against Malaysia in February last year is null and void.

The Sulu Secretariat in a statement said the claimants’ request is therefore inadmissible and must, in any case, be denied.

It said the Hague Court of Appeal heard the application brought by the Sulu claimants in the Netherlands and the court heard submissions from both parties during the proceeding held on April 17.

“Malaysia maintains the position that there is no arbitration agreement to provide any basis for any purported arbitration.

“... and the commencement of a commercial arbitration against any matter which casts a bearing on sovereignty is disingenuous and a blatant abuse of international commercial arbitration process,” the statement read.

The secretariat said Malaysia is committed to safeguarding its sovereignty and upholding the sanctity of the international commercial arbitration process and laying bare the claimants’ attempts to enforce a "sham award" that is null and void.

“This is an attempt to hold a sovereign state to ransom and the continued existence of the award tarnishes the reputation of the globally respected arbitration system," it said.

Malaysia denounces this attempt to pervert the rule of law, does not recognise the alleged legitimacy of the purported arbitral award and is litigating across Europe to ensure that this scam is exposed and the award is overturned, it said. 

On Feb 28 last year, Gonzalo Stampa, an international arbitrator based in Madrid, Spain, was said to have given a final award to the Sulu claimant of US$14.9 billion.

On March 14, the Paris Court of Appeal upheld the suspension order against the enforcement of the final award to Malaysia in Paris, France.

Therefore, the suspension order obtained by Malaysia on July 12 last year for the enforcement of the final award of US$14.9 billion is permanent.