Chief minister Hajiji Noor welcomed the decision shared by law and institutional reform minister Azalina Othman Said on Wednesday.

“We reiterate that we do not recognise any claim over Sabah as we are a sovereign state of the Malaysian federation,” he said in a statement today.

Hajiji also expressed gratitude to the federal government, led by Prime Minister Anwar Ibrahim, and to Azalina for their effort in nullifying the award by Spanish arbitrator Gonzalo Stampa.

Azalina had described the court’s decision a “momentous victory” for the rule of law, which she said would help preserve the sanctity of international arbitration as an alternative form of dispute resolution.

The dispute dates back to arbitration proceedings initiated in Spain by self-claimed heirs of the last sultan of Sulu seeking billions from Malaysia over Sabah.

Stampa was appointed as the arbitrator to the case in 2019 and controversially ordered Malaysia to pay US$14.9 billion, which was later deemed illegal by the Spanish court.

Following the ruling, the claimants attempted to go after global assets belonging to the Malaysian government and state-owned companies.

In May, the Madrid Court of Appeal upheld a December 2023 ruling by a Madrid criminal court that found Stampa guilty of contempt of court, confirming his six-month prison sentence and a one-year ban from practising as an arbitrator.

Stampa was charged last December with contempt of court and unqualified professional practice for defying a Madrid court’s decision to annul the Sulu claimants’ case.

The charges were brought by the Spanish public prosecutor’s office, with the Malaysian government as the complainant.

Although Stampa had previously been appointed as the arbitrator in the case, the High Court of Justice in Madrid annulled his judicial appointment in June 2021.