The Malaysian Insight

THE Paris Court of Appeal’s decision to suspend the US$14.92 billion (RM62.5 billion) award to be paid to Sulu sultanate descendants only applies to the French jurisdiction, a lawyer representing the plaintiffs said. 

Paul Cohen, from the firm 4-5 Gray’s Inn Square, who is representing Nurhima Kiram Foran and others against the government of Malaysia, said that they will continue trying to collect the debt owed via legal channels. 

“The current media output carries some key errors. First, the specific Paris decision affects only France, domestically,” Cohen told The Malaysian Insight. 

On Wednesday, Minister in the Prime Minister’s Department (Parliament and Law) Wan Junaidi Tuanku Jaafar said in a statement that the Paris Court of Appeal had allowed Malaysia’s application to stay the enforcement of the amount granted to the descendants of the Sulu sultanate.

This was after the French arbitration court, in its final award instructed Putrajaya to pay US$14.92 billion to the descendants, following a claim made by Spanish arbitrator Gonzalo Stampa. 

The Financial Times had earlier reported that bailiffs in Luxembourg had seized two Petronas subsidiaries in Azerbaijan as part of an ongoing dispute between heirs of the Sulu sultanate and the government of Malaysia.

According to the report, bailiffs took over the Luxembourg-registered offices of Petronas Azerbaijan (Shah Deniz) and Petronas South Caucasus, with an estimated net worth of nearly RM9 billion, as part of an ongoing dispute between the heirs and the government.

However, according to Cohen, the final award is a global award, therefore, while it may not be enforced in France, it is still applicable in 170 other jurisdictions by way of the New York Convention.

“So, if you refer to our action in Luxembourg, our clients’ position is that the domestic French stay is irrelevant to Luxembourg or any other of the 170 signatory countries in the New York Convention. 

“Our course of action remains unchanged, to collect the debt owed, through correct legal channels,” Cohen added. 

When asked if they have filed to retrieve assets from any other jurisdiction, Cohen said he is not at liberty to divulge the information.

The New York Convention ensures the enforcement of foreign arbitration awards worldwide. 

It requires contracting states to recognise and enforce foreign arbitration awards in the same way they do domestic awards, by essentially converting the foreign arbitration award into a judgment enforceable by a national court.

Putrajaya is currently making preparations for a hearing on the cancellation of the final award, which includes the seizure order against the two Petronas units. 

Wan Junaidi said the government would continue to take all measures accordingly including legal action to terminate all such claims and ensure that the interests and sovereignty of Malaysia are always protected and preserved. 

He said that following the legal actions taken by the government, the High Court of Madrid, Spain, on June 29, had revoked the appointment of arbitrator Stampa and decided all arbitration proceedings and any decision by Stampa, including the final award, are invalid, void and unenforceable under the law. 

Wan Junaidi also added that the government has filed criminal proceedings against Stampa for contempt of court in Madrid. – July 15, 2022.