Corrupt on Foreign Investment and the Host State’s Responsibility in the ICSID Arbitral Tribunal Procedure

Corrupt on foreign investment and its results in the ICSID procedure is one of the new topics in international investment law. Investigating the different dimensions and the impact of the ICSID procedure on investor’s rights and the responsibility of the host state in relation to foreign investment is of importance, objectives and subject matter of this article.

The research method is descriptive-analytical and critical to answer a question, what is the impact of corrupted foreign investment on investor rights and the responsibility of the host state in the ICSID procedure?

The findings show that arbitration based on the investment treaty combined with corruption is rejected at the request of the foreign investor in the ICSID. This procedure has two achievements, two on the same coin. First, the investor is deprived of legal protections and arbitration. Ignoring investor rights resulting from playing its role as the first party to corruption is self-imposed and inevitable. Second, the host state is clear of responsibility for the foreign investor by corruption defense and proving it. The situation suggests a benefit of corruption for the host state, while host state agents are also the second party to corruption.