Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-10T04:52:06.626Z Has data issue: false hasContentIssue false
  • English
  • Français

African Courts, the Settlement of Investment Disputes and the Enforcement of Awards

Published online by Cambridge University Press:  28 July 2009

Augustus A. Agyemang
Get access Rights & Permissions [Opens in a new window]

Extract

An indication of the reluctance of some African states to submit to international arbitration when investment disputes arise under investment contracts providing for international arbitration of disputes is to be found in their insistence that such disputes should be settled by their national courts. For instance, Article 35 of the Oil Code of Madagascar provides for the exclusive jurisdiction of the Madagascar Courts in respect of disputes arising under the Code. In the Libyan Nationalisation Cases, Libya was insistent that only its national courts could settle the arbitrations. In the Holiday Inns Arbitration and the case of Société Ltd., Benvenuti & Bonfant, the Moroccan and Congolese Governments respectively contended that only their national courts could settle certain aspects of the investment disputes they were parties to. This article considers the extent to which this insistence is reflected in investment contracts and the suitability of African courts for settling investment disputes and enforcing awards.

Type
Articles
Information
Journal of African Law , Volume 33 , Issue 1 , Spring 1989 , pp. 31 - 44
Copyright
Copyright © School of Oriental and African Studies 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Official Gazette of 4th December 1982 (Madagascar); News from ICSID (Summer 1984), Vol. 1. No. 2, 16Google Scholar; Adams, & Vincent, , “Madagascar's New Investment Code: Definite Progress” (1986) 1 Foreign Invest. L.JI. 354Google Scholar.

2 The Libyan Memorandum to the President of the ICJ quoted in The Texaco/Calasiatic Award on the Merits, (1978) 17 I.L.M. 1, 27Google Scholar.

3 Lalive, , “The First World Bank Arbitration (Holiday Inns v Morocco)—Some Legal Problems” (1980) 51 Brit. Y.B. Int'l L. 123, 135Google Scholar.

4 (1982) 21 I.L.M. 744Google Scholar.

5 Support for such insistence on the control of national jurisdiction is often based on various UN General Assembly Resolutions on Permanent Sovereignty over Natural Resources. See, Akinsanya, , “International Protection of Direct Foreign Investments in the Third World”, (1987) 36 I.C.L.Q. 58, 59Google Scholar; Omorogbe, , “Contractual Forms in the Oil Industry: The Nigerian Experience With Production-Sharing Contracts”, (1986) 20 J.W.T.L. 342Google Scholar.

6 ICSID, Investment Treaties, 1975, Vol. II, 33Google Scholar; News from ICSID (Winter 1985), Vol. 2, No. 1, 17Google Scholar.

7 Ibid.

8 News from ICSID (Winter 1985), Vol. 2, No. 1, 13Google Scholar.

9 (1984) 23 I.L.M. 237, 263Google Scholar

10 ICSID Convention, Article 26 reproduced in (1966) 60 A.J.I.L. 82, 89Google Scholar.

11 News from ICSID (Summer 1984), Vol. 1, No. 2, 16Google Scholar.

12 Fischer, ACollection of International Concessions and related instruments (1983), Vol. III, 433, 434Google Scholar.

13 Ibid., (1981) Vol. I, 1.

14 Ibid., (1982) Vol. III, 381; (1981) Vol. I, 191.

15 Ibid.

16 Lalive, , “Contracts Between a State or a State Agency and a Foreign Company”, (1964) 13 I.C.L.Q. 987, 1009Google Scholar.

17 Otuteye, “Constitutional Innovation in French West Africa—The Experience of Guinea and Ivory Coast”, (1973) 10 Univ. of Ghana L. JL. 17, 27Google Scholar.

18 For example, Chief Justice Kiwanuka of Uganda “disappeared” after displeasing the Amin regime by deciding a case against it see Afr. Res. Bull; Pol. Ser., 1972, 2608 CGoogle Scholar.

19 For example, Chief Justice Korsah of Ghana was dismissed by President Nkrumah after the Supreme Court had delivered a verdict against the Government—Harvey, Law and Social Change in Ghana (1966) 235–236Google Scholar; Zaire's Supreme Court President was dismissed in 1975–Afr. Res. Bull; Pol. Ser., 1975, 3763 BGoogle Scholar.

20 In 1969, President Kaunda of Zambia forced the Zambian Chief Justice to resign when Government policy and judicial attitudes conflicted—Afr. Res. Bull; Pol. Ser., 1969, 1479 C— 1539 AGoogle Scholar.

21 For example, the constitutions of Botswana (S. 98–102); Gabon (Article 56(2)); Gambia (S. 91); Kenya (S. 62); Liberia (Article IV (II)); Malawi (S. 64); Mauritius (S. 78). See Blaustein, & Flanz, , Constitutions of the Countries of the World, Vols. II, V, VI, VIII, IXGoogle Scholar.

22 Bryde, , The Politics and Sociology of African Legal Development, (1976) 67Google Scholar.

23 Haight, “The New International Economic Order and the Charter of Economic Rights and Duties of States” (1973) 9 Int. Lawyer 591, 592–593Google Scholar; Bilder, , “Some Limitations of Adjudication as an International Dispute Settlement Technique” in Carbonneau, (ed.) Resolving Transnational Disputes Through International Arbitration (1984) 3, 4Google Scholar.

24 International Law Association, Rep. of 40th Conf. (Amsterdam, 1939) 174–175Google Scholar.

25 Blaustein, & Flanz, , op. cit., Vol. XGoogle Scholar.

26 (1982) 21 I.L.M. 726, 729Google Scholar.

27 LIAMCO v Libya, (1981) 6 Yearbook of Commercial Arbitration 89, 91Google Scholar.

28 Kamanu, , “Compensation for Expropriation in the Third World”, (1975) 10 (No. 2) Studies in Comp. Int. Dev. 3Google Scholar.

29 Zoller, , “Algerian Nationalisations: The Legal Issues”, (1972) 6 J.W.T.L. 33, 51Google Scholar.

30 Ibid.

31 For example, Libya's, Memorandum to the President of the ICJ quoted in The Texaco/Calasiatic v Libya Case, (1978) 17 I.L.M. 1, 27Google Scholar; U.N. Resolutions on Permanent Sovereignty over Natural Resources, for example, Resolution 1803 (XVII) of 1962Google Scholar; Resolution 3281 (XXIX) of 15th 01 1975Google Scholar.

32 Gower, , Independent Africa (1967) 102–145Google Scholar.

33 Ibid.

34 Tiewul, & Tsegah, , “Arbitration and the Settlement of Commercial Disputes; A Selective Survey of African Practice” (1975) 24 I.C.L.Q. 393, 395Google Scholar; Agyeman-Duah, , “Ghana, 1982–6: the Politics of the P.N.D.C.” (1987) 25 Jl. of Mod. Afr. Studies 613, 626Google Scholar.

35 On the decay of law enforcement machinery in Africa, see, Mazrui, A., The Africans, a Triple Heritage (1986) 205Google Scholar.

36 For instance, awards in the cases of LIAMCO v Libya, 482 F. Supp. 1175 (D.D.C. 1980)Google Scholar; A B Gotarverken v General Maritime Transport Co., (Libya), (1981) 6 Yearbook of Commercial Arbitration 133Google Scholar; Southern Pacific Properties (Middle East) Ltd. v Egypt (1985) 24 I.L.M. 1042Google Scholar were enforced by the various investor-creditors involved in the U.S., Sweden and The Netherlands respectively. For recent cases, See, France: Court of Cassation decision in Guinea and Soguipeche v Atlantic Triton Company (1986) 26 I.L.M. 373Google Scholar; Switzerland: Geneva Surveillance Authority (Office of Poursuites For Debts and Bankruptcy) Decision in Guinea v Maritime International Nominees Establishment, (1987) 26 I.L.M. 382Google Scholar; U.S.: District Court For The Southern District Of New York Opinion in Liberian Eastern Timber Corporation (LETCO) v The Government Of The Republic Of Liberia (1987) 26 I.L.M. 695Google Scholar.

37 38 African states have so far ratified the ICSID Convention. They are Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros, Congo, Egypt, Gabon, Gambia, Ghana, Guinea, Ivory Coast, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Morocco, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, Somalia, Sudan, Swaziland, Togo, Tunisia, Uganda, Zaire and Zambia. ICSID, 1987 Annual Report 15.

38 Only 14 of the 51 states in Africa have so far ratified or acceded to the New York Convention. These states are Benin, Botswana, Burkina Faso, Central African Republic, Djibouti, Egypt, Ghana, Madagascar, Morocco, Niger, Nigeria, South Africa, Tanzania and Tunisia: (1988) 5 J1. of Int. Arb. 117.

39 ICSID Convention, Article 53(1), (1965) 4 I.L.M. 352Google Scholar.

40 Ibid., Article 54(1).

41 Ibid., Article 54(2).

42 Ibid., Article 54(1).

43 Article 2(1), New York Convention, (1979) 6 Yearbook of Commercial Arbitration 226Google Scholar.

44 Ibid., Article 3.

45 Ibid., Article 4(1).

46 ICSID Convention, Article 53(3) and 55.

47 Dexter & Carpenter v Kunglia farvagsstyrelsen 43 F. 2d 705 (2d. Cir 1930)Google Scholar; Schachter, “The Enforcement of International Judicial and Arbitral Decisions”, (1960) 54 A.J.I.L. 1, 13Google Scholar.

48 For instance, the recommendation made in 1976 by the Asian-African Legal Consultative Committee to its member states in Wall, “The Asian-African Legal Consultative Committee and International Commercial Arbitration” (1979) Can. Yb. Int'l. L. 324, 332Google Scholar; But see the A.A.L.C.'s concern over the recent application of and the interpretation given to the United States Foreign Sovereign Immunities Act of 1976 (Public Law 94–883 Ss. 1602–1611) by the U.S. Courts in (1985) Commonwealth Law Bulletin 559Google Scholar.

49 Delaume, “State Contracts and Transnational Arbitration” (1981) 75 A.J.I.L. 784Google Scholar; The Claim Against the Empire of Iran Case (1972) 45 I.L.R. 57Google Scholar.

50 Lord Denning in Thai-Europe Services Ltd v Government of Pakistan (1975) 1 W.L.R. 1485, 1490Google Scholar.

51 For example, the view of the Legal Adviser of the U.S. State Department in Weilamann v Chase Manhattan Bank, 192 N.Y.S. 2d. 469Google Scholar; See also, the Draft Convention on Jurisdictional Immunities prepared by the International Law Commission in (1987) 26 I.L.M. 625Google Scholar.

52 Capelli-Perciballi, “The Application of the New York Convention of 1958 to Disputes Between States and Between State Entities and Private Individuals: The Problem of Sovereign Immunity”, (1978) 12 Int'l. Lawyer 197, 202Google Scholar.

53 For instance, Canada's State Immunity Act 1982Google Scholar; the U.K.'s State Immunity Act 1978Google Scholar; the Australian Foreign States Immunities Act 1985Google Scholar (C'th)—See Triggs, “Foreign Sovereign Immunities”, Law Institute Journal (Victoria) Vol. 60, No. 9 (09 1986) 932Google Scholar; the Singapore State Immunity Act 1979Google Scholar; the South Africa Foreign States Immunities Act 1981Google Scholar; the Pakistan State Immunity Ordinance 1981.

54 Capelli-Perciballi, , op. cit., 202Google Scholar.

55 Ibid.

56 Judgement of 28 11, 1968 in (1970) 9 I.L.M. 152Google Scholar.

57 Ibid.

58 For instance, the practice of the Egyptian Mixed Courts in the 1940's in Lauterpacht, “Jurisdictional Immunities of Foreign States”, (1951) 28 Brit. Y.B. Int'L L. 220, 250–256Google Scholar.

59 Fox, “States and the Undertaking to Arbitrate”, (1988) 37 I.C.L.Q. 1, 18Google Scholar.

60 DIMINCO Agreement (1970) Ratification Act, 1970, C.I. Sierra Leone Gazette, No. 89, Supp., Schedule E, para. 2 (17th 12 1970)Google Scholar.

61 (1985) 10 Yearbook of Commercial Arbitration 331–332Google Scholar.

62 New York Convention, Article 1(3).

63 These countries are Botswana, Central African Republic, Malagasy, Morocco, Nigeria, Tanzania and Tunisia (1985) 10 Yearbook of Commercial Arbitration 331–332Google Scholar.

64 New York Convention, Article 19(3).

65 Ibid.

66 These countries are Botswana, Central African Republic, Malagasy, Nigeria, and Tunisia, see (1985) 10 Yearbook of Commercial Arbitration 331–332Google Scholar.

67 Achebe, , “United Nations Arbitration Convention: Implications for Nigeria”, (1974) 8 J.W.T.L. 420, 425Google Scholar, Oyekunle, , National Report on Nigeria in (1977) 2 Yearbook of Commercial Arbitration 66Google Scholar.

68 (1982) 7 Yearbook of Commercial Arbitration 349Google Scholar.

69 Ibid.

70 Ibid

71 Ibid.

72 Ibid., 350.

73 New York Convention, Article 5.

74 Ibid., Articles 5(1)(a)—5(l)(e).

75 Ibid., Article 5(2).

76 Schwab, “Legal Foundations and Limitations of Arbitration Procedures in the U.S. and Germany”, in Sanders, (ed.), International Arbitration (1967) 301, 307Google Scholar.

77 Sanders, , “Consolidated Commentary on Court Decisions on the New York Convention, 1958”, (1979) 4 Yearbook of Commercial Arbitration 231, 238Google Scholar.

78 New York Convention, Article 5(2) (b).

79 Ibid.

80 Ibid., Article 5(2)(a).

81 Section 442(1) of the Algerian Code of Civil Procedure of 1966, Ordinance No. 66–154 of 8th 06 1966Google Scholar, Journal Officiel de la Republique Algerienne of 9th 06 1966, 454, 480Google Scholar.

82 See (1978) 3 Yearbook of Commercial Arbitration 283Google Scholar.

83 Ibid.

84 Issad, National Report on Algeria in (1979) 4 Yearbook of Commercial Arbitration 20Google Scholar.

85 Société Tunisienne d'Electricité et de Gaz (STEG) v Société Entepose (France), (1978) 3 Yearbook of Commercial Arbitration 283Google Scholar.

86 New York Convention, Article 5(2)(a).

87 Section 29 of the Ghana Arbitration Act 1961 (Act 38).

88 Oyekunle, op.cit., 66, 75.

89 Chafik, , National Report on Egypt in (1979) 4 Yearbook of Commercial Arbitration 44, 59Google Scholar.

90 Buzghaia, , National Report on Libya in (1979) 4 Yearbook of Commercial Arbitration 148, 150–161Google Scholar.

91 Oyekunle, , op.cit., 75Google Scholar; Chafik, , op.cit., 59Google Scholar.

92 Chafik, ibid.

93 1964(1) African L. Rep. (Comm.) 322Google Scholar.

94 Ibid.

95 Ibid.

96 Ibid.

97 Ibid.

98 (1981) 6 Yearbook of Commercial Arbitration 133Google Scholar.

99 Article 5(1 )(e) of the New York Convention in (1979) 6 Yearbook of Commercial Arbitration 226Google Scholar.

100 (1981) 6 Yearbook of Commercial Arbitration 133Google Scholar.

101 Ibid.

102 Mehren, Von & Kourides, , “International Arbitrations Between States and Foreign Private Parties: TheLibyan Nationalisation Cases”, (1981) 75 A.J.I.L. 476, 539Google Scholar.

103 Bockstiegel, , “Arbitration of Disputes Between States and Private Enterprises in the International Chamber of Commerce” (1965) 59 A.J.I.L. 579, 583Google Scholar; Schachter, , “The Enforcement of International Judicial and Arbitral Decisions”, (1960) 54 A.J.I.L. 1, 2Google Scholar.

104 Shilston, , “A View from the 1981 Annual Conference of the Chartered Institute of Arbitrators”, (1982) 47 Arb. Jl. 255Google Scholar.

105 ICSID, 1987 Annual Report 9Google Scholar.

106 AGIP SpA v Congo (Case ARB/77/1), ICSID, 15th Annual Report 39Google Scholar; Societe Ltd. Benvenuti & Bonfant SrL v Congo (Case ARB/77/2), (1981) 20 I.L.M. 877Google Scholar.

107 ICSID, 1984 Annual Report 9Google Scholar.

108 ICSID, 1987 Annual Report 5Google Scholar.