Sign in Subscribe
Banks (Finance)

Libyan Leader's Secret Bank Accounts Exposed

Strategic Insights

— 1 min read

Canadian and international banks, including Goldman Sachs, HSBC Holdings, Royal Bank of Scotland, and Japan's Nomura, were secretly managing billions of dollars in Libyan oil revenues through the country's sovereign wealth fund, the Libyan Investment Authority (LIA). The fund, valued at $53 billion, was invested at the direction of the Gadhafi family, who held significant personal control over the state funds. The investments were made despite the reputation of the Libyan regime for brutality and corruption, raising questions about the West's embrace of the regime. The assets have since been frozen by the European Union and the United Nations.

Key Takeaways:

  • The Libyan Investment Authority (LIA) had $53 billion invested in various banks, including Goldman Sachs ($43 million), HSBC Holdings ($292.69 million), and Societe Generale ($1 billion).
  • The investments were made at the direction of the Gadhafi family, who held significant personal control over the state funds.
  • The LIA has a Canadian connection, having taken over Calgary-based Verenex Energy in 2009 for $317 million Cdn.
  • The funds held assets in various currencies, including Canadian and U.S. dollars, British pounds, Swiss francs, and euros.
  • Nineteen billion dollars was held in Libyan and Middle Eastern banks, while almost $4 billion was held in assets designed to manage risk or for speculation.
  • The LIA owns shares in household name companies, including General Electric, BP, Vivendi, and Deutsche Telekom.

Statistics:

  • $53 billion in investments managed by the Libyan Investment Authority (LIA)
  • $292.69 million held by HSBC Holdings across 10 accounts
  • $43 million held by Goldman Sachs in three accounts
  • $1 billion held by Societe Generale
  • $317 million Cdn used to acquire Verenex Energy
  • $19 billion held in Libyan and Middle Eastern banks

Sources:

  • CBC News
  • Global Witness
  • "Gadhafi's Hidden Millions: How Libya's Sovereign Wealth Fund Invested $53 Billion in Banks Around the World", Global Witness (2011)

Read more