After Winning $15 Billion in Arbitration, Heirs of Sultan of Sulu Ready to Seize Malaysian Property in Paris

French bailiffs are seeking to enforce a court order to seize three Malaysian government properties in Paris. The seizures are related to the Sultan of Sulu’s heirs winning court over assets worth $15 billion, according to the heirs’ lawyers and court documents obtained by Reuters.

Bailiffs tried to calculate the value of the property on Monday (6/3) after a court issued a foreclosure order in December. But officials at the Malaysian Embassy in Paris refused, said Malaysian lawyers and the government.

The dispute stems from an agreement between the two European colonizers and the Sultan of Sulu in the Philippines signed in 1878. The Sultan allowed the colonists to use his territory which turned out to be under present-day Malaysian territory, an agreement that Malaysia respected until 2013. Kuala Lumpur took over the territory after independence from England. Every year the Malaysian government pays a sum of money to the heirs, who are citizens of the Philippines.

The shabby-looking Malaysian national flag flutters in front of the Petronas Towers in Kuala Lumpur, Malaysia. (Photo: AP)

Kuala Lumpur halted the payments after a bloody attack by supporters of the former sultanate seeking to reclaim their lands from Malaysia in 2013. The heirs of the sultan, who once controlled territory that included the rainforest-covered islands of the southern Philippines and parts of Borneo, said they were not involved in the attack. They took the matter to an arbitration court.

Malaysia, which did not participate in the arbitration, declared the process of confiscating its assets illegal. They said they had obtained a suspended sentence in France.

The Paris properties are the third set of Malaysian assets that the heirs publicly claim. They have obtained a forfeiture order for the Luxembourg unit of state oil company Petronas and have sought permission from a Dutch court to seize assets in the Netherlands.

This award applies globally to most Malaysian assets, apart from diplomatic premises, under the UN convention on arbitration.

A French judge in December last year granted the heirs’ request to seize three Malaysian government properties in Paris to pay off a debt of 2.3 million euros ($2.46 million) they said Malaysia owed them, according to court documents shared by heir attorney.

The attempted seizure in Paris has never been reported before.

Malaysia was ordered to pay the heirs under the preliminary arbitration award awarded to them in Spain, which was not tied to a period of stay in France, the lawyer said.

Malaysia’s Ministry of Justice did not respond to a request for comment on the initial decision.

Jamalul Kiram III, former Sultan of Sulu in the southern Philippines region in front of the Blue Mosque in Taguig, south of Manila, February 22, 2013. (Photo: REUTERS/Romeo Ranoco)

The French judge also found that the property, which is located in the 16th administrative area near the Malaysian Embassy in Paris, does not qualify as a diplomatic premises, according to court documents.

Unlike the embassy, ​​the venue has no official signage and is not subject to French tax exemptions, the judge said.

On Monday, a French bailiff attempted to evaluate the value of the three properties, lawyers said. Proceeds from the sale will be given to the heirs.

A spokesman for Malaysia’s law ministry said court officials appeared at the Malaysian Embassy in Paris, but were turned away. They declined to comment further. Malaysia’s foreign ministry and embassy in Paris declined to comment.

Former Sultan of Sulu Jamalul Kiram III (seated right) with his followers put up a placard in front of the Blue Mosque in Maharlika village, Taguig city, south of Manila, March 1, 2013. (Photo: Reuters)

Reuters could not confirm whether bailiffs tried to enter the three properties that were subject to foreclosure orders.

Paul Cohen, attorney for the heirs, said the court order was “unambiguous” in its directives to seize the property and that the court would decide next steps.

Last month, Luxembourg bailiffs issued confiscation orders for two Petronas units in the case. The company said the heirs’ actions were baseless and would continue to defend its legal position.

Malaysia previously promised to take all legal measures to protect its assets around the world. [ah/rs]