Criminal proceedings commence today: Spanish arbitrator faces charges over RM69.9 bil ruling

Gonzala Stampa, who ordered Malaysia to pay billions to self-claimed Sulu sultanate heirs, risks jail time, fine if he is found guilty

10:33 AM MYT

 

KUALA LUMPUR – Malaysia is set to have its day in the Madrid Criminal Court as Spanish arbitrator Gonzala Stampa faces charges brought by Malaysia and the Spanish Public Prosecutor’s Office.

Stampa, who controversially ordered Malaysia to pay US$14.92 billion (RM69.9 billion) to the self-claimed heirs of the defunct Sulu sultanate, faces a jail sentence and a fine if he is found guilty of the criminal charges. 

In a social media post, Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said wrote that the legal procedure marks an important day for Malaysia. 

“The criminal prosecution (of Stampa) by the Madrid Criminal Court would represent the beginning of justice for the 32 million Malaysians who are the real victims of this US$14.9 billion fraud. 

“Malaysia has full faith in the Spanish justice system,” the minister said, noting that Stampa is facing charges of serious contempt of court and for unqualified professional practice as he had “knowingly disobeyed” several binding orders from the Madrid High Court. 

“(Stampa) had been told many times (that) he had been revoked as the arbitrator, yet still decided to pronounce an arbitral award after moving (his arbitration seat) to Paris. He was paid over US$2.5 billion for this decision. 

“His actions are without precedent in the international arbitration system.”

Previously, Malaysia had expressed its concern over the attempt by certain parties to undermine and disrupt the course of criminal proceedings against Stampa, with Azalina describing the motion filed on December 4 as “frivolous” and “vexatious”.

Azalina, however, neither named the parties involved in the motion nor divulged the contents of the said “opposing” motion.

Malaysia is in the process of annulling the US$14.9 billion awarded by Stampa to eight individuals who claim to be the heirs of the defunct Sulu sultanate.

Previously, eight citizens of the Philippines, who claimed to be heirs of the defunct Sulu sultanate, had filed for arbitration proceedings in Spain to seek billions of US dollars from Malaysia over Sabah, and a court in Madrid had in March 2019 appointed Gonzalo Stampa to be the arbitrator for the Sulu claimants’ case. – December 11, 2023

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