Libya in $1.5bn law suit over bribes to Gaddafi son

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Saif Al Islam, the son of former Libyan leader Muammar Gaddafi. (Getty Images)

Saif Al Islam, the son of former Libyan leader Muammar Gaddafi. (Getty Images)

Libya's sovereign wealth fund has filed a $1.5bn lawsuit against Societe Generale, accusing it of funnelling bribes worth tens of millions of dollars to associates of Saif Al Islam, the son of former Libyan leader Muammar Gaddafi.

"Societe Generale contests the unfounded allegations in the Libyan Investment Authority's (LIA) complaint," a spokeswoman for France's second-biggest bank said in an emailed statement, without giving more details.

The LIA said it had filed its lawsuit against the bank in London's High Court.

The LIA alleges that SocGen paid at least $58 million to Leinada, a Panamanian-registered company, for advisory services related to $2.1 billion of derivative trades that the Libyan sovereign wealth fund entered into with SocGen between late 2007 and 2009.

The LIA's legal filing claims that Leinada did not have the expertise to advise or structure such deals.

"The payments were purportedly for advisory support, including around structuring the transactions, though the legal papers highlight that the descriptions of the services provided were deliberately opaque and inconsistent, and the nature and scale of the remuneration was hidden from the LIA," it said.

The LIA said it had suffered heavy losses in the deals with SocGen, and was seeking to have the trades voided to recoup the money allegedly paid to Leinada and to be awarded damages for the alleged fraud.

"This claim, together with the one against Goldman Sachs that was initiated in January 2014, reflects the desire of the LIA's new board of directors to redress previous wrongs and seek the recovery of these substantial funds as it seeks to invest and generate wealth for the people of Libya," the statement quoted AbdulMagid Breish, chairman of the LIA, as saying.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed