Disputes on foreign investment contracts and treaties

It is undoubtedly the case that a host country may have promoted itself on the international stage as a business-friendly environment with relatively good liberal lines and conduciveness for investment. However, complaints of breaches of investment codes such as changes in regulatory and legal landscape may occur, resulting in financial losses. Examples include claims by investors arising out of the following allegedly unlawful acts which are;

  • Nationalization
  • Tax levied by the Government
  • Illegal tax assessment on an indirect subsidiary
  • Failure to provide infrastructure support for business
  • Revocation or cancellation of licences or permits by the Government
  • Takeover of business based on allegations such as money laundry
  • Change or reversal of policy such as the energy policy of the local government in between the operation of a project due to political changes in Government.
  • Cancellation of a contract concluded in a company where a claimant held interest and reassignment was not done through a public auction process
  • Preventing the effective implementation of a joint venture project where a claimant held stakes or, failing to provide protection as well as security to projects and refusing to obey court orders concerning investments
  • Judicial delays by the Government which may have left the claimant unable to enforce an award concerning a contractual dispute with a state-owned host company
  • Interference with business activities by the Government including raids on facilities, seizure of equipment and freezing bank account funds, closure of facilities and invalidation of permits/licenses.
  • Local authority seeking to evert influence which affects investments

If you’d like to know how Mckevron can help, get in touch on (00 254) 701248134 / (00 254) 752804812 or alternatively fill in our enquiry form.