Libya eyes refund of Goldman, SocGen losses

MILAN (Reuters) - The Libyan sovereign wealth fund is investigating investment losses of $1.75 billion on structured products managed by Goldman Sachs and Societe Generale to see whether it can claim compensation, the fund's chairman said on Wednesday.

New Libyan Sovereign Wealth Fund Chief Seeks Probes

One of the first orders of business in post-Moammar Gadhafi Libya is to clean out the rotten wood.

Tops on that list is investigating corruption at the Libyan Investment Authority, the country’s sovereign wealth fund. Rafik Nayed, the fund’s acting chief executive, said in an interview with the Wall Street Journal that its investment operations are on hold while it looks through $65 billion in holdings to examine dealings with people tied to Gadhafi.

WSJ: Ex-Gadhafi Officials Remain At Libyan Sovereign Wealth Fund

The new Libyan government is said to be examining the Libya Investment Authority and its dealings with foreign banks

But the man in charge fears his scrutiny could be hindered by the continuing presence of Gadhafi-era fund managers

One rebel leader said the government should create an independent audit commission with the power to bring fraud charges

Libyan sovereign wealth fund 'missing $2.9bn'

Some $2.9bn (£1.8bn) is missing from the accounts of the Libyan sovereign wealth fund, the official tasked with tracking down Libya's foreign investments has told the BBC.

Mahmoud Badi said investigations had found "misappropriation, misuse and misconduct of funds" at the Libyan Investment Authority (LIA).

The LIA has total funds worth about $70bn.

Nato joins attack on Gaddafi bastion

Some $2.9bn (£1.8bn) is missing from the accounts of the Libyan sovereign wealth fund, the official tasked with tracking down Libya's foreign investments has told the BBC.

Mahmoud Badi said investigations had found "misappropriation, misuse and misconduct of funds" at the Libyan Investment Authority (LIA).

Stanford Receiver Sues Libyan Fund for $55 Million Withdrawn, Lawyer Says

R. Allen Stanford’s court-appointed receiver sued the Libyan government wealth fund for $55 million he claims the state withdrew from Stanford’s alleged Ponzi scheme before it collapsed in early 2009, according to the receiver’s lawyer.

Ralph S. Janvey, Stanford’s receiver, also won a temporary freeze on some Libyan government bank accounts in the U.S. until a federal judge can determine if the money should be distributed to investors allegedly swindled of more than $7 billion, said Janvey’s lead attorney, Kevin M. Sadler.

SEC Looks At Goldman, Others’ Dealing With Libyan Sovereign Fund

U.S. securities regulators are investigating whether Goldman Sachs Group Inc. and other financial firms violated foreign bribery laws when dealing with the Libyan sovereign-wealth fund, the Wall Street Journal reported, citing sources.

Enforcement lawyers at the Securities and Exchange Commission are reviewing documents that detail the companies’ relationships with the Libyan Investment Authority, which is controlled by Moammar Gadhafi, sources told the Journal. Among other things, the SEC is specifically interested in a $50 million fee Goldman initially agreed to pay as part of a proposal set up to help the LIA recoup losses.