Can criminal charges in Madrid nullify Sulu arbitration award?

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Criminal Charges Against Arbitrator Could Nullify Sulu Arbitration Award

Spanish arbitrator Gonzalo Stampa, who issued a US$14.92 billion award against Malaysia in favour of self-claimed heirs of the Sulu Sultanate, is set to face criminal charges in Madrid on December 11. Malaysia views these proceedings as critical, as a guilty verdict against Stampa could lead to the annulment of all awards made by him, thereby invalidating the substantial claim.
Arbitrator's Actions Under Scrutiny

The Madrid Court has filed charges against Gonzalo Stampa, with a potential guilty verdict carrying a jail sentence and fine. This legal action stems from Stampa's continued involvement in the arbitration case and his issuance of the award against Malaysia, even after the High Court of Justice of Madrid had annulled his judicial appointment in June 2021. Despite this annulment, Stampa proceeded to hear the case, later moving the seat of arbitration to Paris in February 2022, where the award was ultimately made.
Malaysia's Position and Legal Strategy

Malaysia is the complainant in the criminal case against Stampa, underscoring its commitment to challenging the legitimacy of the arbitration award. A guilty finding in this criminal proceeding is seen as instrumental in supporting Malaysia's assertion that the US$14 billion award is unlawful and baseless. The Malaysian government is actively engaged, with lawyers appointed to challenge the claims and ensure a comprehensive defeat for the claimants and their funders.
Recent Legal Developments

Recent legal actions have further supported Malaysia's stance. On November 6, a French Court annulled an order that would have allowed the self-claimed Sulu group to mortgage a Malaysian diplomatic building in Paris. This decision, along with the impending criminal proceedings against Stampa, signals a significant setback for the claimants' efforts to seize Malaysian assets globally and reinforces Malaysia's position against what it terms illegal and baseless claims.

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Can criminal charges in Madrid nullify Sulu arbitration award?

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