Public Wrongs, Private Actions: Civil Lawsuits to Recover Stolen Assets

Abstract

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Belt and Road Initiative: legal mechanisms to recover stolen assets

“…According to the World Bank, states and government entities can make use of civil lawsuits and remedies to recover assets stolen by former officials and/or get compensation for damages caused by corruption (World Bank, 2015). Such civil lawsuits and remedies are also encouraged by Article 53 of the UN Convention, which allows each state party to United Nations ( 2004):…”

“…Second, once the plaintiff(s) and defendant(s)/potential defendant(s) have been identified, it is important to note that there are two (2) primary categories of claims that may be pursued by the plaintiff(s) (World Bank, 2015):…”

“…Proprietary claim: Whether a corrupt individual has stolen an asset (belonging or beneficial owned by the state), the state would commence a proprietary action against the potential defendant to claim a "specific asset" that has been stolen (World Bank, 2015). For example, if monetary assets (such as cash) have been stolen by a corrupt official from State A -State A would be able to commence a proprietary action against the corrupt official to specifically claim for the stolen cash.…”

“…Personal claim: This involves actions against a corrupt individual or third party for "monetary damages" rather than to reclaim a "specific asset." This may include, among other things, an action for breach of contract, for compensation through damages or for recompense for unjust enrichment (World Bank, 2015). For example, where a corrupt official has dissipated all monies stolen from State Aand State A can no longer trace where the stolen monies have dissipated to -State A could then attempt to commence an action against the official for breach of his or her fiduciary duties (i.e.…”

“…Investigative measures: The main purpose of investigative measures is to collect evidence and secure assets to pursue a lengthy civil corruption suit (World Bank, 2015). Such measures are briefly illustrated in Table 4.…”