SAHDEA Welcomes Paris Court Decision as Major Victory for Malaysia and Sabah

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Kota Kinabalu - The Sabah Human Development and Empowerment Association (SAHDEA) welcome the decision of the Paris Court of Appeal to annul in full the so-called ‘Final Award’ issued by arbitrator Gonzalo Stampa on 28 February 2022 in the claim brought by individuals alleging descent from the defunct Sulu Sultanate.

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The Paris Court of Appeal has ordered the Sulu claimants to pay Malaysia €200,000 in costs after determining that Stampa had no jurisdiction to issue the ‘Final Award’, as there was no valid arbitration agreement binding Malaysia. This latest judgment, delivered on 9 December and formally received by the Malaysian government yesterday, reinforces earlier decisions that rejected the recognition and enforcement of the ‘Partial Award’ on 6 June 2023, a ruling subsequently upheld by the French Supreme Court on 6 November 2024.

The claimants—eight Filipino nationals—had previously initiated arbitration proceedings in Spain, seeking billions in compensation from Malaysia over Sabah. Stampa was appointed by a Madrid court in March 2019, but his mandate was later annulled by the Spanish courts, rendering the arbitration process unlawful. Despite this, he proceeded to issue a ‘Final Award’ amounting to USD14.9 billion in favour of the claimants.

Arthur Erik, President of SAHDEA, said they stands firmly with the national effort to defend Malaysia’s sovereignty. The Paris Court of Appeal’s decision reaffirms that Malaysia has acted on solid legal grounds throughout this process and upholds the nation’s longstanding position that these claims are baseless.