Libya’s Top 5 Corruption Scandals

3. In January 2014, the LIA also filed a lawsuit against Goldman Sachs Group Inc. saying it made about US$350 million selling the LIA worthless derivatives. Goldman has said the charges are without merit and in April, sought to have the case thrown out before trial. A decision is pending. U.S. Department of Justice (DOJ) has also set its sights on alleged malpractice in Libya by Western financial linchpins.

According to the report, the DOJ ‘is investigating banks, private equity firms and hedge funds that may have violated anti-bribery laws in their dealings’ with the LIA in violation of the US Foreign Corrupt Practices Act.

4. In March 2014, Canadian law enforcement authorities filed charges against two former executives of SNC Lavalin, the Canadian engineering giant, that include allegations of bribery of foreign public officials in Libya. According to a press report, SNC Lavalin executives had built-up a close-knit relationship with the Gaddafis, with one of its former executives “alleging the engineering giant put the daughter-in-law of late Libyan dictator Muammar Gadhafi on its payroll in 2011.”

5. Norwegian chemical fertiliser company Yara International and three of its former senior executives were indicted in 2008 and 2009 in relation to allegations of corrupt activities in Libya, with the latest being a former CEO indicted in January 2014. In the same month, the company agreed to pay a US$ 48 million fine – the largest fine for corruption in Norwegian history– admitting it bribed senior government officials including an oil minister in the Gaddafi regime.

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