24.
The question then would be whether the Commission, though
not a de jure organ of the State, was nonetheless
empowered to exercise elements of governmental authority
such as would render the Respondent culpable therefor under
Article 5 of the ILC Articles or at all. For ease of reference
Article 5 reads:
“The conduct of a person or entity which is not an organ of the State
under article 4 but which is empowered by the law of that State to
exercise elements of governmental authority shall be considered an
act of the State under international law, provided the person or
entity is acting in that capacity in the particular instance.”
25.
A review of case law on Article 5 is instructive. In Noble Ventures
Inc. vs. Romania (supra), SOF/ APAPS were held to have
exercised elements of governmental authority because the
Tribunal found no legal distinction between SOF/ APAPS on the
one hand, and a governmental ministry on the other hand,
when either entities had been expressly designated by the
Romanian Privatisation Law as an empowered public
institution for purposes of the country’s privatization program.
Thus both SOF and APAPS were found to have been clearly
charged with representing the Romanian State in the
privatization process.
26.
In the earlier case of Phillips Petroleum Co. Iran vs. Islamic
Republic of Iran (supra) the Iran-United States Claims Tribunal
had given similar consideration to the express provisions of Iran’s
internal law in determining whether Iran was responsible for the
expropriation of the claimant’s goods when it allegedly took the
said claimant’s property interests through the National Iranian
Oil Company (NIOC). The Tribunal observed:
“International law recognizes that a State may act through
organs or entities not part of its formal structure.
The
REFERENCE No. 10 OF 2013
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