THE Philippines continuous to remain officially silent over the legal victory of the heirs of the Sultanate of Sulu mandating Malaysia to pay back the rentals due to the Sultanate for Malaysia’s continued use and occupation of Sabah (North Borneo), with the majority of the mainstream media and some pro-US politicians now focused instead on the bogey of China’s “debt trap.”
Already, heated debates are happening at Malaysia’s Parliament over the decision by an arbitration court in France last February 28, 2022, mandating Malaysia to pay the heirs of the Sultanate $14.92 billion (other reports say over $32 billion) to cover not only the unpaid “cession money” for its continued use and occupation of Sabah (North Borneo) plus royalty for the oil and gas discovered there in 2011.
According to a report by Malaysia’s ‘New Strait Times’ last July 18, 2022, the shouting match occurred between Dewan Rakyat (People’s Assembly/House of Representatives) Speaker Tan Sri Azhar Azizan Harun and Kota Belud (Sabah) representative Isnaraissah Munirah Majilis. Dewan Rakyat is the lower chamber of Malaysia’s two-chamber Parliament.
Majilis complained that Harun had already thrice rejected her motion for the assembly to discuss the Sultanate’s claim and its impact on Malaysia and the residents of Sabah.
Following the court order, bailiffs in Luxembourg moved to seize two properties of Malaysia’s oil company, Petronas, in compliance with the order. Although Malaysia had managed to file an appeal or ‘stay of execution’ last July 12, 2022, the stay of execution, according to the Sultanate’s lawyers, only covers Malaysia’s properties in France and not elsewhere.
The court ruling, thru Arbitrator Gonzalo Stampa, basically affirms that the ‘concession treaty’ first signed in 1878 between the Sultanate of Sulu then headed by Sultan Jamalul Ahlam and the British North Borneo Chartered Company thru Alfred Dent and Baron von Overbeck was a “commercial private lease agreement” that is enforceable under the New York Arbitration Convention of 1958 of which the Philippines and Malaysia are signatories.
Malaysia was also given 3-months to comply with the ruling of which interest would be charged should Malaysia refused.
The King of Brunei gave North Borneo to the Sulu sultan for helping pacify a rebellion in the kingdom nearly a hundred years before, according to historical records.
Among others, the 1878 treaty stipulates the payment of “cession money” (“rent” according to the Sultanate) of 5,000 Malaysian dollars. The amount was then increased to 5,300 Malaysian rupee (RM), an amount the Malaysian government has been paying until 2003 when armed followers of the Sultan tried to regain the territory as the treaty had already lapsed and with Malaysia increasingly adamant to further pay the Sultanate claiming Sabah is already part of its territory.
PH officially claims Sabah as its own
Under President Diosdado Macapagal (1961-1965), official Philippine government efforts to reclaim Sabah thru diplomatic means was started. In 1962, the descendants of Sultan Jamalul Ahlam, transferred their rights to North Borneo to the Philippine government.
Even after the Federation of Malaysia was formed on September 16, 1963, its first prime minister, Tunkul Abdul Rahman, recognized Malaysia’s obligation to the Sultanate on being reminded by Macapagal by dutifully paying the annual rent thru its embassy in Manila. Prior to this, it was the British that has been paying the amount to the Sultanate.
In 1968, under President Ferdinand Marcos, the Philippine government officially took cognizance of its claim to Sabah when Congress passed RA 5446 recognizing Sabah as a territory “over which the Republic of the Philippines has acquired dominion and sovereignty.”
In a separate ruling on July 16, 2011, the Supreme Court (GR 187167) in dismissing the petition against RA 9522 (amended Philippine Baseline Law) affirmed the Philippines’ sovereignty of Sabah, stating:
“The definition of the baselines of the territorial sea of the Philippine Archipelago as provided in this Act (RA 9522) is without prejudice to the delineation of the baselines of the territorial sea around the territory of Sabah, situated in North Borneo, over which the Republic of the Philippines has acquired dominion and sovereignty.”
‘Diversionary tactic’ by Amboys
Despite all of these, Malaysia now considers the issue of Philippine sovereignty and the Sultanate’s rights to Sabah as a “non-issue” and its importance being diverted to the real “non-issue” by most sections of the Philippine mainstream media and politicians such as the bogus China debt-trap.’
The rush to divert public attention against China and away from the more pressing issue of Sabah started after Department of Transportation (DOTr) undersecretary for rails, Cesar Chavez, was quoted last July 17, 2022, as saying that China had ‘withdrawn’ its funding for three major infrastructure projects namely:
the Subic-Clark Railway Project (P51 billion), Philippine National Railways (PNR) South Long-Haul Project (Bicol Express), P142 billion and, the Davao-Digos segment of the Mindanao Railway Project (MRP), P83 billion.
But as it turned out, Chavez’s claim was erroneously reported after he also bared that it was the Philippines, thru outgoing Department of Finance (DOF) secretary, Carlos Dominguez, which took the initiative of cancelling the applications for these projects in “deference to the incoming (Marcos) administration.”
Cagayan de Oro representative, Rufus Rodriguez, a well-known ‘Amboy’ (American Boy) in Congress, was quick to call for the scrapping of any further deals with China by raising the bogey of China’s debt-trap diplomacy, claiming China charged more in interest compared to other countries.
But as official government data showed, China only charged 2 percent (in dollar terms) for its funding of the Kaliwa and Chico Dam projects compared to 2.7 percent for Japan-funded North-
South Commuter Rail Project and 3.69 percent for the Cebu Rapid Bus Transit (BRT) Project funded by France.
Official data also showed that like in the case of Sri Lanka, China has the least loans extended to the Philippines at just $3.5 billion, with the Japan as the country’s top lenders at over $15 billion.
For its part, the Chinese Embassy last July 18, 2022 said it is “ready” to talk with Marcos administration officials on how it can help support Philippine infrastructure projects.
“As for infrastructure, China has comprehensive strength and is well-known for its quality and speed. China will tap its own advantage and support the Philippines to improve its infrastructure,” the statement said.
“Our two sides have been negotiating technical issues and made positive progress to move the projects forward. China is open for technical discussions over our G-to-G projects, and is ready to carry our cooperation forward, in close communication with the Philippine new administration,” the embassy statement added.
“Currently, 17 projects in total have been completed, and more than 20 projects are under implementation or in progress,” the Embassy added further.