KUALA LUMPUR: Legal experts are anticipating that the Paris Court of Appeal will soon invalidate the "fraudulent" US$14.9 billion award claimed by individuals asserting Sulu Sultanate heirship, citing alleged unlawful actions by a Spanish arbitrator.
The comments follow a statement by Minister in the Prime Minister's Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said, who predicted that the annulment was imminent.
Lawyer Nizam Bashir Abdul Kariem Bashir contended Dr Gonzalo Stampa, the Spanish arbitrator, had acted unlawfully.
"Despite his arbitrator appointment being annulled on May 25, 2020, he continued with the proceedings by relocating the arbitration seat to Paris and issuing the final award.
"Where no jurisdiction subsists, then any awards similarly lack any basis.
"Malaysia took the necessary proceedings in the Courts in France, and on June 6, the Paris Court of Appeal denied enforcement of the final award based on the arbitrator's jurisdiction," he told the New Straits Times.
Echoing Nizam Bashir, the Institute of Malaysia and International Studies (Ikmas) director, Professor Dr Sufian Jusoh emphasised the unique nature of the Sulu case.
He highlighted that the case depends on the credibility of the parties and the sole arbitrator, deviating from typical international law-based cases.
"The Sulu case is unique. It is not the usual international law-based case such as the Philippines versus China UNCLOS Tribunal 2016.
"In this case, it depends on the parties' rights under an ancient agreement covering north Borneo. The people of Sabah had made up their minds about joining Malaysia. Sulu has been absorbed as part of the Philippines.
"(The purported Sulu heirs) have to show direct linkages to the original agreement and that they suffered losses," he said.
Dr. Sufian pointed out that the Spanish court has deemed itself an improper forum and that proper arbitration with the sole arbitrator should not have proceeded with the decision.
He pointed out that according to the French Code of Civil Procedure Article 1520, part of the criteria for the Paris Court of Appeal in considering the validity of an arbitration award includes "the breach by the arbitral tribunal of the mandate conferred onto it, also the violation of due process."
"They (the asserting Sulu Sultanates) are funded in the claim. It shows the involvement of third parties taking advantage of the process," Dr. Sufian added.
It was previously reported that Azalina said the funder of the purported eight heirs was believed to be from the United States, based on "notes" received by the government and views on the official Malaysia-Sulu Case website.
She also said the government has evidence of who is behind the British global litigation fund, called Therium Capital Management Ltd, which is backing the purported heirs.
Both legal experts shared the view that Malaysia is close to ending the frivolous claims.
In a recent online press conference on Nov 10, the minister announced a significant development in the Sulu Sultanate heirship case, revealing that the Madrid Court had conducted investigations and filed criminal charges against arbitrator Stampa.
The charges, if proven, could lead to a jail sentence and fine, marking a shift from a civil to a criminal case.
The Minister emphasised that the government's persistent and aggressive demands prompted the Madrid Court to set a date for the hearing, scheduled for December 11.
This criminal case was not only a crucial development but also a factor supporting Malaysia's claim that the international arbitration award by Stampa was illegal and baseless.
Previously, eight citizens of the Philippines, who claimed to be heirs of the defunct Sulu Sultanate, had filed for arbitration proceedings in Spain to seek billions of US dollars from Malaysia over Sabah. In March 2019, a Madrid court in Spain appointed Stampa as the arbitrator for the Sulu claimants' case.