By Padraig O'Hannelly.
The rival Libyan Investment Authority (LIA) leaders in Tripoli and Tobruk have agreed to restore the LIA’s Litigation Committee, to supervise the fund's international legal cases against Goldman Sachs and Société Générale (SocGen).
The Litigation Committee was originally established by Mr AbdulMagid Breish (pictured), as Chairman of the Tripoli-based LIA, in 2013, but was dissolved by the then Chairman of Tobruk-based LIA, Mr Hassan Bouhadi in 2015.
According to a joint statement by the Mr Breish and the newly-appointed Chairman of the Tobruk LIA, Mr Fawzi Omran Farkash, "this resulted in unnecessary costs, delays and complications to the LIA’s litigations."
Since then, the legal actions in London have been facilitated by the appointment of a receiver, BDO LLP, to act on behalf of the fund.
The restored Litigation Committee will be composed of Fawzi Omran Farkash, Mustafa Ismail, Sami Rais and Ali Baruni.
The chairmanship of the committee will rotate between these members. It will hold an initial meeting on or before 8th September 2016, at which point it will name its first Chairman.
Meanwhile, discussions are underway between Tripoli and Tobruk to merge the two boards of directors of the LIA to establish a single, united board. This puts both rival organisations in conflict with the GNA-appointed steering committee, whose legitimacy they are challenging in the Libyan courts.
Considering the international welcome for the appointment of a Steering Committee to run the LIA, it remains to be seen whether the Litigation Committee, appointed by elements opposed the Steering Committee, will be recognised by the British courts.
(Source: Tobruk LIA, Tripoli LIA)