In February 2022, eight individuals who claimed to be the descendants of the defunct Sultan of Sulu, Sultan Jamalul Kiram II, received a purported final award worth $14.92 billion in an arbitration proceeding against the Government of Malaysia. The said award was delivered by the Spanish arbitrator, Dr Gonzalo Stampa.
The Sulu case is a sophisticated abuse of the arbitral process and international law. It 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.
Malaysia is currently pursuing its legal battle against the Sulu Claimants across Europe to ensure that the purported Final Award, constituting 16% of the country’s annual budget, is overturned. In June 2023, Malaysia secured landmark victories in the Paris Court of Appeal and the Hague Court of Appeal, demonstrating the fundamentally flawed nature of the Sulu claim and a clear step towards the collapse of the case.
In November 2023, the Paris Courts oversaw the withdrawal of the measures registered by the Claimants on the diplomatic buildings owned by Malaysia in France. The Paris enforcement judge quashes its prior ex parte order that authorized a statutory mortgage to be registered on these diplomatic buildings. The judge also recorded the Claimants’ withdrawal from the proceedings they had initiated to seize these diplomatic buildings.
On 22 December 2023, the Spanish Criminal Court found Dr. Stampa guilty of contempt of court. The Criminal Court has sentenced Dr. Stampa to six months in prison and a year ban from professional practice as an arbitrator.
With these consecutive victories, Malaysia is advancing steadily towards the complete annulment of the purported Final Award in France.
