Corruption, jurisdiction and admissibility in international investment claims

Abstract

A problem of increasing significance in international investment law is the relationship between investor corruption and the adjudicative power of investor-state arbitration tribunals. This article addresses one aspect of this problem, namely the question of whether corruption on the part of the investor goes to the jurisdiction of the tribunal, or the admissibility of the claim. The answer is that it depends on the particular circumstances of the case. Where the corruption in question relates to the procurement of the investment, and the relevant international investment agreement includes a 'legality requirement' as a condition of the tribunal's jurisdiction, then the matter is a question of jurisdiction. If, in the alternative, the corruption post-dates the investment, or the international investment agreement contains no 'legality requirement', then the matter is a question of admissibility. Several other rules accompanying this basal notion will be included in the article.