Libya’s Pursuit of Lost Billions ‘in Limbo’

The head of the Libyan Investment Authority (LIA) has told the Financial Times that his efforts to recoup billions of dollars lost through sales of derivatives by Goldman Sachs and other financial institutions are now “in limbo” after the country’s prime minister moved to sack him last week.

Mohsen Derregia, head of the sovereign wealth fund, said:

"People associated with the old regime are … in the shadows of those wanting to replace me ... They are not in formal positions in the government but they are very effective in their influence.

"We have done everything by the book, ethically and with no favouritism ... But once you get a political meddling of the parties, a sharing of the LIA pie, it won’t be the well organised transparent organisation that Libya needs."

Prime minister Ali Zeidan [Zidan] announced last week that Mr Derregia would be replaced after the government deemed his performance unsatisfactory. His role was to be filled temporarily by deputy central bank governor Ali Mohammed Salem Hebri.

Mr Derregia noted that on the same day the LIA had announced that it was co-operating with the US Securities and Exchange Commission (SEC) which is investigating whether Goldman Sachs and other financial companies violated US bribery laws in their dealings with the LIA before the end of the Gaddafi regime in 2011.

(Source: Financial Times)

No comments yet.

Leave a Reply