SULU - A Spanish arbitrator who awarded US$15 billion to the descendants of a former sultan in a land dispute with Malaysia dating back to the 19th century has been convicted of contempt of court, a significant victory in Malaysia’s efforts to annul the case.
Gonzalo Stampa was accused by the Spanish state prosecutor and Malaysia of failing to comply with a Madrid court ruling to drop the case by instead moving it to a court in Paris.
Stampa was sentenced to six months in jail and barred from operating for one year, according to the ruling.
In February 2022, Stampa awarded US$14.9 billion to the Sultan of Sulu’s heirs, who have since sought to enforce the award against Malaysian state-owned assets around the world.
Malaysia has obtained a stay on the case in France, but the ruling remains enforceable globally under a UN arbitration treaty. “Congratulations to all Malaysians! The efforts by this [government] in addressing and putting a stop to the Sulu Fraud have not been in vain,” Law Minister Azalina Othman Said wrote on X, formerly known as Twitter.
Malaysia identified the eight descendants of the Sultan Jamalul Kiram as Sultan Muhammad Fuad Kiram I, Nurhima Kiram Fornan, Sheramar Kiram, Permaisuli Kiram-Guerzon, Taj-Mahal Kiram-Tarsum Nuqui, Ahmad Nazard Kiram Sampang, Jenny KA Sampang, and Widz-Raunda Kiram Sampang.
The dispute stems from an 1878 deal between European colonists and the Sultan of Sulu for use of his territory, which spanned parts of the southern Philippines and present-day Malaysia on the island of Borneo.
Malaysia paid a token sum annually to the sultan’s heirs to honour the agreement but stopped in 2013, prompting the heirs to seek arbitration, which has been funded by Therium, a London-based firm that provides financing for litigation and arbitration cases.
Stampa’s fees after delivering the award came to about US$2.3 million, court documents showed.
The heirs, who suffered a setback in June 2023 after a Paris court upheld the Malaysian government’s challenge against a partial award, are also trying to strengthen their case in Madrid.
They filed a criminal case against the Spanish justice system in December 2023, claiming that a court clerk in Madrid improperly sent an email ordering Stampa to step down from the case.
The Sultanate of Sulu, founded in 1457, continues to lay claim to Sabah which it obtained from Brunei as a gift for helping put down a rebellion on Borneo Island. The British leased Sabah and transferred control over the territory to Malaysia after the end of World War II. The Sulu Sultanate said it had merely leased North Borneo in 1878 to the British North Borneo Company for an annual payment of 5,000 Malayan dollars then, which was increased to 5,300 Malayan dollars in 1903.
The Sultanate of Sulu is believed to exist as a sovereign nation for at least 442 years. It stretches from a part of the island of Mindanao in the east, to Sabah, in the west and south, and to Palawan, in the north. But North Borneo was illegally annexed by Malaysia in 1963 following a referendum illegally organized by the Cobbold Commission in 1962, the people of Sabah voted overwhelmingly to join Malaysia. (SCMP, The Mindanao Examiner)
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