Libyan Investment Authority Chairman arrested on suspicion of corruption and embezzlement of funds

The Libyan Office of Public Prosecutor in Tripoli has issued an arrest warrant of the Chairman of the Libyan Investment Authority (LIA) Dr Ali Mahmoud Hassan Mohamed.

Sources from the office reported Wednesday that Ali Mahmoud was detained and placed at the Special Deterrence Force-run Rehabilitation Prison in Tripoli’s Mitiga airport over financial corruption and embezzlement.

Ali Mahmoud was appointed by the Presidential Council’s Head Fayez Al-Sirraj as the CEO of the LIA as part of a string interim committee in August 2016.

The Libyan Investment Authority (LIA), which holds about $66 billion worth of mostly frozen assets, has long been at the centre of leadership disputes and power struggles that reflect Libya’s political splits.

The LIA was established by government decree in August 2006 after the end of economic sanctions previously precluding foreign investment in Libya.

The LIA’s primary role is to manage the value of Libya’s oil revenues and diversify its revenue streams as well as its dependence on national income. The LIA is a holding company that manages government investments from the oil and gas industry and other areas of the international finance market.

The LIA oversees the assets of the Libyan Arab Foreign Investment Company and also manages investment in other areas including real estate, agriculture, shares and bonds, infrastructure and oil and gas. The Libyan Investment Authority is Africa’s largest sovereign wealth fund and is a member of the International Forum of Sovereign Wealth Funds.