Libya vs Western Bankers
During the rush after Gaddafi’s détente with the US in 2003, the LIA was courted by successive Western companies and invested in assets as diverse as the Dutch–Belgian bank Fortis and the Italian football club Juventus. Previous reports and court documents paint a picture of an inexperienced management team at the LIA wowed by sophisticated Western financiers. This, however, is a vast oversimplification.
The LIA now claims the deal was clouded by opaque structures and misleading advice. This, however, seems unlikely to be the full explanation despite how convenient it would be for the post-Gaddafi Libyan authorities. Given Zarti’s endorsment of other bad trades for the LIA on which he stood to gain personally, it is far more likely that Zarti and those around him were involved in various side actions with Goldman surrounding the losses. However, Zarti and Goldman would have been very careful to avoid leaving any sort of paper trail.
For Libyan politicians, the pending case represents an opportunity for the country’s new leaders to claw back losses incurred during Gaddafi’s reign, as well as to expose the corruption of the former regime and its nefarious and unscrupulous dealings with the Libyan people’s money.