Malaysia hails ‘decisive victory’ over Sulu sultan’s heirs after French court ruling

Malaysia was ordered to pay eight self-declared descendants of the defunct Sulu sultanate US$15 billion by a French arbitration court last year

But a Paris appeal court decision this week meant that the claimants could no longer ‘rely on the sham award’, said Malaysia’s law minister

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Sunset at a beach in Sabah. The French court’s decision relates to a territorial claim over the state of Sabah in Malaysian Borneo by the defunct Sulu sultanate’s self-proclaimed heirs. Photo: Shutterstock

Published: 12:45pm, 7 Jun 2023Updated: 12:48pm, 7 Jun 2023

Malaysia secured a “decisive victory” in its challenge against a multibillion-dollar territorial claim over the state of Sabah in Malaysian Borneo, the country’s law minister said, after a Paris court ruled the arbitrator involved in granting the award had wrongly upheld their jurisdiction.

A French arbitration court in February last year ordered the Malaysian government to pay US$15 billion to eight self-declared descendants of the defunct Sulu sultanate, who claimed losses after Malaysia stopped paying an annual stipend in the aftermath of a deadly incursion in Sabah by another group of claimants of the sultanate.

The Paris Court of Appeal, however, ruled on Tuesday that the arbitration court had no jurisdiction over the case.

Its ruling “validates Malaysia’s long-held position that this sham arbitration is nothing more than an attempt by a group of individuals to extort an exorbitant amount of money from Malaysia,” said Robert G Volterra, counsel for the Malaysian government in the case, in a statement on Wednesday.

The Paris Court of Appeal decision “implies” it will later annul the US$15 billion arbitral award, Malaysia’s law minister said. Photo: Reuters

Azalina Othman Said, Malaysia’s law minister, said the decision meant that the claimants “cannot rely on the sham award in France for any purpose”.

“This decision, which is final and binding, is a decisive victory for Malaysia in its ongoing pursuit of legal remedies, which Malaysia is confident will result in comprehensive defeat for the claimants and their funders,” Azalina said.

Malaysia hails ‘decisive victory’ over Sulu sultan’s heirs after French court ruling

Malaysia was ordered to pay eight self-declared descendants of the defunct Sulu sultanate US$15 billion by a French arbitration court last year But a Paris appeal court decision this week meant that the claimants could no longer ‘rely on the sham award’, said Malaysia’s law minister

Malaysia was ordered to pay eight self-declared descendants of the defunct Sulu sultanate US$15 billion by a French arbitration court last year

But a Paris appeal court decision this week meant that the claimants could no longer ‘rely on the sham award’, said Malaysia’s law minister