Allegations of Corruption and Illegality in Investment Arbitration: jurisdictional and procedural Implications in Latin America

Abstract

Corruption in investment arbitration raises substantive and procedural challenges that affect the legitimacy of the international arbitral system. This article examines how allegations of corruption influence arbitral jurisdiction, claim admissibility, and the liability of the parties, drawing on landmark cases such as Inceysa Vallisoletana, Siemens or and Metal-Tech. It explores evidentiary standards, the different stages in which corruption arises, and the factors that shape its procedural consequences. The study also presents recommendations for States, investors, and arbitral tribunals aimed at strengthening integrity, transparency, and coherence in investment arbitration when dealing with systemic corruption in Latin America.