Libya’s representative to the UN Ibrahim Dabbashi sent a letter to the UN security Council with a request to withdraw from the sanctions of the sovereign Fund of the country, Lybian Investment Authority (LIA), which, according to the diplomat, loses billions of dollars due to poor management of frozen assets. About it reports Reuters, familiar with the text of the letter.
“According to estimates of the LIA, only in 2014, instead of increasing the volume of assets, the Fund lost $721 million,” says the diplomat. According to Dabbashi, the Fund was short $1.6 billion to $2.3 billion, which could receive as dividends from conservative investments. In the letter Dabbashi stressed that the government of Libya is not going to use the assets, and only wants to be sure that their volume will continue to decline due to poor management. He requests the security Council to adopt a resolution that would allow LIA to open and close accounts, and perform transactions between them.
As stated by Reuters Dabbashi, the LIA’s assets are estimated at $67 billion Similar evaluation gives the Institute of sovereign funds — $66 billion
LIA was created in 2006, it was approximately $70 billion, while the Fund was under the direct control of the country’s leader Muammar Gaddafi and his family. In March 2011, the LIA’s assets were frozen in accordance with decision of the UN to prevent the conclusion belonging to Gaddafi to the Libyan people funds. Since then, 85% of the funds remain frozen. During the reign of Gaddafi, according to the current government of Libya, the Fund was managed correctly. Because of this, it is leading the lawsuit with Société Générale and Goldman Sachs, which managed part of the Fund.
Reuters, citing diplomatic sources said that members of the UN security Council are skeptical about the change in the sanctions regime against Libya until such time as the country has not established a stable government. Now in the country the diarchy in the state capital Tripoli meets Islamist General national Congress, in Tobruk — the government, recognized by the international community. In addition part of the coast of the country controls the banned in Russia “Islamic state”, and in the South-West the de facto authorities are armed groups of Tuareg.
In December 2015, the parties signed the “Declaration of principles” according to which governments in Tripoli and Tobruk are preparing for parliamentary elections, which should take place within two years. Agreement was reached on the establishment of a national unity government. But while the leadership of LIA both governments are fighting is just two people, Bugadi and Hassan Abdul-Majeed Brees, see themselves as heads of a sovereign Fund. The first supports the government in Tobruk, and the second Congress in Tripoli. In early March, the sport between Breesen and Bouhadi began to consider London’s High court.