Malaysia gets respite in land deal claim | Land Portal
Author(s): 
Reuters
Language of the news reported: 
anglais


Main photo: Malaysia has argued that no one else has a right over Sabah, which is at the centre of a claim by the heirs of the late sultan of Sulu. (Bernama pic)

KUALA LUMPUR: Malaysia has been given a reprieve in the US$14.9 billion (RM63.5 billion) claim over a centuries-old land deal.

The government said yesterday it has obtained a stay order against the enforcement of a French arbitration court ruling to pay the sum to the descendants of a sultan over the colonial-era deal.

A British law firm representing the heirs did not immediately respond to a request for comment.

On Tuesday, the Paris Court of Appeal allowed an application by the Malaysian government for the stay after finding that enforcement of the award could infringe upon the country’s sovereignty, law minister Wan Junaidi Tuanku Jaafar said in a statement.

Malaysia is also preparing to have the ruling set aside, he said.

The stay order comes a day after lawyers representing the heirs of the late sultan moved to seize two Luxembourg-based units of Malaysian state oil firm Petronas. Petronas has described the seizure as “baseless” and said it would vigorously defend its legal position.

The heirs claim to be successors-in-interest to the last Sultan of Sulu, who entered a deal in 1878 with a British trading company over the use of his territory, which is now the state of Sabah.

Malaysia took over the arrangement after independence from Britain, paying a token sum to the heirs annually. But the payments were stopped in 2013, with Malaysia arguing that no one else had a right over Sabah, which was part of its territory.

A French court issued the US$14.9 billion award in favour of the heirs in February, with Malaysia refusing to participate in the arbitration.

Wan Junaidi said Malaysia did not recognize the heirs’ claim and would take all steps to uphold the country’s sovereignty.

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