M’sia has every right to stop paying Sulu sultanate heirs: Rais Yatim

KUALA LUMPUR – Malaysia has every right to stop the annual payment of RM5,300 to the heirs of the Sulu sultanate as the 1878 agreement is no longer valid after Sabah joined the Federation of Malaysia in 1963, said former foreign minister Tan Sri Rais Yatim.

He said the payment was a result of the 1878 agreement between Sultan Jamal Al-Alam, Baron De Overbeck and Alfred Dent, which was inked before Sabah agreed to form the federation.

“The payment has no basis anymore and is relegated to the pages of history. So, why must Malaysia pay (the heirs) when the facts are on our side,” he was quoted as saying by Utusan Malaysia.

Rais, who is Dewan Negara president, said Malaysia should not underestimate the heirs’ claims and the government should immediately formulate a strategy to fight the claims to safeguard the country’s sovereignty.

“Malaysia cannot just not recognise the claim, instead (this) must be resolved based on the legal process to ensure the sovereignty of the country and Sabah.”

Last Friday, the cabinet agreed to set up a special task force to examine, monitor and formulate appropriate legal action to address the claims by the heirs of Sultan Jamalul Kiram II (sultan of Sulu) against the Malaysian government.

In a statement, Minister in the Prime Minister’s Department (Law and Parliament) Datuk Seri Wan Junaidi Tuanku Jaafar confirmed that the task force will be led by himself.

Other members, he said, include Foreign Minister Datuk Seri Saifuddin Abdullah, Attorney-General Tan Sri Idrus Harun and international arbitration experts.

Malaysia received a stay on the US$15 billion (RM64 billion) awarded to heirs of the Sulu sultanate after a French court found its enforcement could infringe on the country’s sovereignty.

The Financial Times had earlier reported that the Luxembourg-registered subsidiaries of Petronas, Petronas Azerbaijan (Shah Deniz) and Petronas South Caucus, which the company manages in Azerbaijan, were seized by bailiffs on behalf of the defunct sultanate’s descendants.

Responding to the report, Petronas admitted they have been served with “saisie-arret” on July 11 but clarified that the two firms had been divested of all its assets and the proceeds from the exercise have been duly repatriated.

The seizure is part of the award issued by a French arbitration court totalling US$14.9 billion to the heirs of the defunct Sulu sultanate. – The Vibes, July 18, 2022