It remains unknown to whom Zambia paid $50million over the LapgreenN dispute.
The United Nations froze assets and accounts of Libya’s Sovereign Fund since 2013.
There has been no central government in Libya since 2011.
But Zambia’s Attorney General Likando Kalaluka withdrew a case in the Zambian Courts, entered a sttange consent judgement and registered the final outcome in the London High Court Arbitration.
The Crooks purporting to control former Libyan telecomunication giant, LapgreenN have written to Zambia’s lenders claiming that Zambia was a peperpetual defaulter.
Former Minister of Finance, Felix Mutati concluded the negotiations and paid $50million pledging to dismantle the rest of the balance of $220million in a period of six months.
However when the payment was made international law enforcement agencies flagged the payment as a criminal money laundering activity.
Now the Libyan Sovereign Fund whose $67billion remains frozen is asking the United Nations to lift the sanctions.
Below is the report.
The internationally recognised head of Libya’s $67bn sovereign wealth fund is to appeal to the UN in an attempt to allow the fund to manage its frozen assets, despite the violent political rivalries plaguing state institutions.
Ali Mahmoud, head of a steering committee appointed by the UN-backed government to oversee the Libyan Investment Authority, said the fund was “losing a lot of money” because it was unable to manage old equity and bond investments.
The LIA’s assets have been under UN sanctions since the 2011 uprising against Muammer Gaddafi and any chance of them being unfrozen have previously been dashed by the power struggles and conflict that erupted after the dictator was toppled.
The chaos has affected the central bank, the National Oil Company and the LIA with officials backed by political adversaries bickering over the leadership of the organisations and their resources.
“There are alternative opportunities that are being missed and in some cases there are deposits in banks that are past their maturity on which we are being charged negative interest rates,” Mr Mahmoud told the Financial Times. “This has caused us big losses especially on the bonds and long-term investment portfolios.”
But Mr Mahmoud has two domestic rivals each claiming to be the rightful leader of the fund — disputes that reflect deep political divides. The UN-backed government in Tripoli is weak, has little influence beyond the capital and is locked in power struggles with rivals, including a parliament in Tubruq that is allied to Khalifa Haftar, a military strongman who controls much of the east.
The Tripoli offices of the LIA are under the control of Abdulmagid Breish, a former leader of the organisation, who has said the fund’s assets should only be unfrozen when the political situation stabilises. He managed to get a ruling from a Libyan court delaying the government’s decision to appoint Mr Mahmoud and his steering committee.
But Mr Mahmoud insists he is recognised by the LIA’s subsidiaries and by the international banks that hold its accounts. On behalf of the LIA he has attended board meetings of foreign companies in which the fund holds stakes, such as UniCredit bank of Italy and First Energy Bank in Bahrain.
Mr Mahmoud said the returns on the LIA’s assets are not frozen but his committee has not touched any funds because it is only in charge temporarily.
“We are just trying to draw up a policy to stabilise and preserve these assets,” he said. “They belong to all Libyans and the future generations, and not to any political faction.”