Tuesday, July 19, 2022

Will Australia's new First Nations Foreign Affairs policy enable the Sulu Sultanate to seize Petronas assets in Australia

 by Ganesh Sahathevan 



Australia's new government lead by Prime Minister Anthony Albanese has announced a new Indigenous or First Nations' centred foreign policy. 


Labor will place the experience of First Nations at the heart of our diplomacy by implementing a First Nations Foreign Policy that incorporates First Nations identities, perspectives and practices into Australia’s overseas engagement. We will establish an Office of First Nations Engagement headed by an Ambassador for First Nations Peoples within the Department of Foreign Affairs and Trade to lead systematic engagement with First Nations communities and leaders and embed First Nations perspectives in Australia’s international diplomacy.


It is unclear if Albanese and his Minister for Foreign Affairs, Penny Wong, had in their contemplation regional realities when they formulated and announced their First Nations Foreign Policy, but they have as a result placed Australia at the centre of a number of regional conflicts, in Malaysia, Thailand , The Philippines, Indonesia  and possibly Singapore where there are ongoing tensions arising from claims made by their First Nations people. 


Coinciding with Penny Wong's "balik kampung" to her home state of Sabah was legal action by the Sultanate Of Sulu against the Government Of Malaysia for oil royalties the Sultanate says it is owed. Pursuant to an arbitration award in its favour, The Sultanate has already seized state oil company Petronas' assets in Luxembourg. It has vowed to pursue Petronas and other Malaysian Government assets worldwide (see MalaysiaNow story below).

Petronas has a significant portfolio of assets in Australia. The Sultanate would be negligent if it does not press the Australian Government for assistance in seizing Petronas assets in Australia, given its First Nations Foreign Policy that "incorporates First Nations identities, perspectives and practices into Australia’s overseas engagements".


END 


Malaysian assets at risk globally as late Sulu sultan's heirs claim US$15 billion award

Lawyers for the claimants say the ruling remains legally enforceable outside France through the New York Convention, a UN treaty on international arbitration recognised in 170 countries.
Reuters
July 18, 2022 10:00 AM


The heirs of a 19th century sultanate are seeking to seize Malaysian government assets around the world in a bid to enforce a US$14.9 billion arbitration award they won against the Southeast Asian nation, despite a stay on the case handed by a French court, their lawyers told Reuters.

A French arbitration court in February ordered Malaysia to pay the sum to the descendents of the last sultan of Sulu to settle a dispute over a colonial-era land deal.

The government said last Wednesday the Paris Court of Appeal had stayed the ruling, after finding that enforcement of the award could infringe the country's sovereignty.



Law minister Wan Junaidi Tuanku Jaafar said the stay would prevent the award from being enforced as Malaysia works to set aside the ruling. Malaysia had not previously participated in the arbitration.

Lawyers for the claimants, however, say the February ruling remains legally enforceable outside France through the New York Convention, a UN treaty on international arbitration recognised in 170 countries.

"The 'stay' that seems to comfort the Malaysian government temporarily delays local enforcement in one country, France itself," said Paul Cohen, the heirs' lead co-counsel, of London-based law firm 4-5 Gray's Inn Square.

"It does not apply to the other 169."

With some exceptions, such as diplomatic premises, any Malaysian government-owned asset within nations party to the UN convention is eligible for the purposes of enforcing the award, said Elisabeth Mason, another lawyer for the heirs.

Wan Junaidi declined to comment when contacted.

Petronas assets held
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The heirs claim to be successors-in-interest to the last sultan of Sulu, who entered a deal in 1878 with a British trading company for the exploitation of resources in territory under his control – including what is now the oil-rich state of Sabah.

Malaysia took over the arrangement after independence from Britain, annually paying a token sum to the heirs, who are Philippine nationals.

But the payments were stopped in 2013, with Malaysia arguing that no one else had a right over Sabah, which was part of its territory.

The claimants last week moved to seize two Luxembourg-based units of state oil firm Petronas as part of efforts to enforce the award.

Petronas, which has described the seizure as "baseless", has said it will defend its legal position, adding that the units have divested their assets.

Lawyers for the heirs said the units were now under the control of bailiffs in Luxembourg, pending any appeal by Petronas against the seizure.

"We note Petronas’ description of certain transactions, and we note their statement that those transactions are complete," Mason said.

"We will discover the full picture of all assets in due course."


















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