Fraud and arbitration: a critical view on the Sulu case FMTNews FMTEng
Fraud and the issue of arbitrability was an ongoing debate even before the New York Convention of 1958 which dealt with the enforcement of foreign arbitration awards.
The framers of the convention must have envisaged high ethical standards in the arbitration industry as well as legal industry at that time, and the tragedy that Malaysia is suffering now will not have happened at all if such ethics were present. The irony in the Sulu case arose because of the government’s refusal to pay a small payment which can be construed as symbolic in nature under the terms of an agreement.
Basically, this means that a victim-respondent cannot take a passive approach when, rightly or wrongly, an arbitration process has been commenced, that, too, against a sovereign state. In addition, a country which is infested with single degree holders in the legal industry at this time and era is not a reflection of a learned society sufficient to protect the rule of law and public interest.
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