A Paris court annulled a $14.9 billion award against Malaysia, affirming Sabah’s sovereignty and rejecting the Sulu heirs’ claim as a constitutional matter beyond private arbitration.
KOTA KINABALU: The Paris Court of Appeal’s decision to annul a USD 14.9 billion final award in the Sulu claimants’ case safeguards Sabah’s territorial integrity.
Sabah Law Society president Datuk Mohamed Nazim Maduarin said the ruling provides a crucial clarification of the legal position underpinning the claim.
He emphasised that Sabah’s status is firmly rooted in the Federal Constitution and the Malaysia Agreement 1963.
“It cannot be altered, challenged, or subjected to extraterritorial arbitral processes that lack a lawful foundation,” Nazim said in a statement.
The court fully annulled the “Final Award” issued by arbitrator Gonzalo Stampa on Feb 28, 2022.
It also ordered the Sulu claimants to pay costs amounting to €200,000 to Malaysia.
The court found Stampa had no jurisdiction to issue the award as there was no valid arbitration agreement binding Malaysia.
Nazim said this finding reinforced a fundamental safeguard for the rule of law.
He stressed the ruling affirmed that constitutional matters were beyond the scope of private arbitration.
“Disputes involving sovereign rights and constitutional arrangements cannot be privatised, outsourced, or adjudicated through unauthorised mechanisms,” he added.
The SLS acknowledged the work undertaken by the Malaysian legal teams in the French proceedings.
Nazim reiterated that matters involving Sabah’s constitutional rights must be addressed with clarity and respect for the rule of law.
“As an independent statutory body, the Sabah Law Society remains committed to upholding the rule of law,” he said.
