The Luango River Case

The situation of the Luango River case involves a dispute between the Republic of Ndebele and the Kingdom of Shauna over the transboundary water supply of the Luango River. The Republic of Nbdele has launched the creation of a major bauxite mining and processing industry. To provide energy for this industry, Ndebele has hired Dutch corporation Bello Nedam to construct a hydro-electric dam. Across the two countries lives the Ido minority indigenous population, who are protesting against the continuation of construction of this dam as a research conducted on the matter proved that the dam will impede their subsistence agriculture by reducing the water flow of the river. Nevertheless, the government of Ndebele has decided to continue with the construction of the dam, thereby fostering increased discontentment within the Ido and the Shaunian population, who have decided to present the case before the Maastricht Panel of Arbitration. For the scope of this paper, the question of Bello Nedam’s liability in this situation will be solely discussed. This paper will argue that Bello Nedam is not to be held liable for the alleged violation involved in the construction of the dam.
The role that Bello Nedam plays in this present situation can otherwise be seen as a question of legal personality of Multinational Enterprises. This question has been highly controversial, as two models of international law exist today. The classic model argues that only states are awarded legal personality, as recognition is the only mechanism to obtain international rights through, inter alia, customary law derived from membership of the United Nations1. The modern international law model is argued by scholars such as Wolfgang Friedman, who suggests to include private corporations as participants of international law due to their increasing impact in this evolution of globalization2. Nevertheless, the modern international law model has not evolved to such an extent that it has gained legal effect.