PETALING JAYA: Malaysia has reportedly obtained a stay order on the controversial U$14.92bil (about RM63bil) award to the self-proclaimed heirs of the Sulu Sultanate by a Paris Arbitration Court in March.
According to an article in globalarbitrationreview.com, a French Court had granted Malaysia a stay order on Tuesday (July 12) after finding its enforcement could infringe upon the country’s sovereignty.
Details of the French court decision were not immediately known but it appeared to coincide with a move by lawyers for the heirs to "seize" two PETRONAS subsidiary companies registered in Luxembourg.
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When contacted Wednesday (July 13), Minister in the Prime Minister's Department (Parliament and Law) Datuk Seri Dr Wan Junaidi Tuanku Jaafar said a statement will be issued on the matter.
On Tuesday, London-based Financial Times reported that the so-called Sulu heirs had invoked the controversial Paris Arbitration Court decision to award US$14.92bil to the heirs to get their claims against Malaysia.
The eight Sulu heirs based in the Philippines were represented by London-based lawyers led by Elisabeth Mason.
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Financial Times, quoting lawyers for the group, said bailiffs in Luxembourg had seized Luxembourg-registered subsidiaries PETRONAS Azerbaijan (Shah Deniz) and PETRONAS South Caucasus companies on behalf of their clients on Monday (July 11).
The controversial award by arbitrator Gonzolo Stampa has been disputed by Malaysia.
He made the decision even as superior courts in Spain issued a suspension order on the case.
Malaysia had subsequently filed an appeal to overturn Stampa's award for the Sulu heirs in Paris. Malaysia was not represented during the Paris arbitration proceedings in March.
Stampa, who was stopped by superior courts in Madrid from carrying out the hearing for the Sulu heirs, then sat in a Paris Arbitration Court to give the award, ruling that an 1878 treaty was a commercial "international private lease agreement".
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In an immediate response on Tuesday, PETRONAS confirmed that the two subsidiaries mentioned in the report were served with "saisie-arret" (notice of seizure) on Monday.
However, PETRONAS clarified that these subsidiaries had previously divested their entire assets in the Republic of Azerbaijan and proceeds from the exercise had been duly repatriated.
PETRONAS noted that it viewed the seizure actions as baseless and was working vigorously to defend its legal position on the matter.
