KUALA LUMPUR (Dec 11):  Malaysia is awaiting a decision from the Madrid Criminal Court in Spain on whether arbitrator Gonzalo Stampa committed crimes by compelling Kuala Lumpur to pay US$14.92 billion (about RM70 billion) in the Sulu dispute case, said Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman.

Speaking at a virtual news conference after attending Stampa's criminal proceedings at the Madrid court on Monday, Azalina said the morning proceedings unfolded as planned, with Malaysia’s legal counsel and the Spanish public prosecutor effectively presenting the case against the arbitrator before the judge.

She said the controversial award by Stampa in May 2020, ordering Malaysia to pay the US$14.92 billion, is considered a "fraud award" because the High Court of Justice of Madrid, which appointed him as the arbitrator, annulled Stampa's judicial appointment in June 2021.

"In light of the reported facts — none of which, importantly, are materially disputed by Mr Stampa himself — the public prosecutor's office in Madrid filed its own complaint against Mr Stampa for contempt, in addition to the criminal offence of engaging in unqualified professional practice," she added.

Reaffirming Malaysia's complete confidence in the Spanish criminal justice system, Azalina also expressed hope that the trial could see the Spanish arbitrator convicted in his own country, thereby putting an end to the Sulu claims.

"I also hope that this would be something that other countries in the world must appreciate — what Malaysia is doing — so that no arbitrator out there will use a fraud award to try to enforce and order against a sovereign state and legitimate country," she said.

Noting that Malaysia has also filed an application related to Sulu claims in France and other European countries, Azalina expressed hope that the outcome of the Madrid court could provide more solid arguments to dismiss the frivolous and vexatious claims made by the self-proclaimed Sulu heirs.

Stressing that Malaysia is not against the commercial arbitration platform, the minister said Malaysia will not be bullied into abiding by the orders of an arbitrator who had behaved in a rough manner towards Malaysia.

"That's why, with the state immunity bill that we hope to pass in the Dewan Rakyat next year, [we want] to really make sure these things don't happen in any country like ours, where someone takes an order through this arbitration platform and simply serves it to a nation, thinking they can make money out of the enforcement of the court order," she said.

The dispute between Malaysia and the purported heirs of the Sulu Sultanate, who are citizens of the Philippines, originated from an alleged breach of an 1878 contract for the annual payment of RM5,300 in exchange for perpetual sovereign rights over part of today’s Sabah.