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Libyan Investment Authority personnel changes 

Exclusive: Why I was right not to resign – Mohsen Derregia, outgoing head of the LIA 

Prime Minister finally publicly named the LIA as one of the institutions whose head had been removed from this post.

My first obvious question to LIA Chairman and CEO Derregia was why was he challenging the Prime Minister’s and the LIA’s Board of Trustees’ decision to remove him from his post?
“That decision contravenes the law that governs the LIA. It does not comply with the law or the internal procedures of the LIA”, was his straight forward answer.
Mohsen Derregia explained that the LIA Board of Trustees consisted of seven members:1-The Prime Minister, 2-The Governor of the Central Bank of Libya, 3-The Minister of Economy, 4-The Minister of Finance, 5-The Minister of Planning, plus two independent members appointed by the Cabinet as a whole – and not the Prime Minister personally.
He felt that the process and the internal procedures and steps taken when voting to remove him – were not followed correctly.
The LIA was set up to operate as an independent body, at arm’s length from the day to day ups and downs of politics, he explained. It is supposed to be a body concerned with the long term investments of Libya for future generations. It is supposed to be stable, transparent and worthy of the confidence of its counterparties both inside and outside Libya. It is supposed to be protected from the fickle whims and desires of politicians – Derregia clarified.
The LIA outgoing head also felt that the LIA is not supposed to be a political body, reflecting the political colour of the executive in power. It is also not supposed to be loaded with political appointees which are changed every time Libya gets a new government.
Moreover, with regards to the Board of Trustees of the LIA, Derregia explained that it is supposed to be an oversight body that stands back and allows the managers and directors to operate the LIA while making sure that the overall strategy that has been set is adhered to in the overall long term interest of the ultimate shareholders – ie, the people of Libya. It is not supposed to interfere in the everyday affairs of the LIA as that would simply create confusion and leave counterparties wondering who is really in charge.
Derregia pointed out that if the LIA was meant to be under the direct everyday control of the executive, it would be part of the annual budget. But the funds of the LIA are removed from Libya’s oil money – taken away from the executive – so that they are invested long term. The annual state budget is meant to be under the everyday control of the executive – cabinet and Prime Minister – but the LIA Sovereign fund is designed to be independent.
The LIA head then exploded the myth that most of the LIA’s assets have been unfrozen“Not even 5% of the LIA’s funds have been unfrozen. This is costing us hundreds of millions per year. The LIA has requested on numerous occasions since July 2012 that its funds be unfrozen. But we have not received a single reply. The last letter was sent on 4th December”.

 

More from Libya Herald..

• LIA gets a new temporary head – Mohsen Derregia’s removal is finally publicly confirmed by the Prime Minister By Sami Zaptia.     Tripoli, 28 February 2013: Libya's worst kept secret is no longer. Prime Minister Ali Zeidan finally came out in public at today’s press conference and c...
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NTC freezes 338 assets of which 260 are individuals and 78 are companies

By Sami Zaptia.
Tripoli, 21 May:
Libya’s National Transitional Council (NTC) has now issued Law No. 36 2012 dated 2 May, which was released this week entitled ‘The Administration of the Assets and Properties of Some Individuals’.
By virtue of this law, the assets and properties of 338 entities listed in the attachment to the law, of which the first 260 are individuals and the remaining 79 are companies, including branches of foreign companies, are frozen.
Article 1 of Law No. 36 makes the law quite broad in that it stipulates that the freezing of assets and properties applies to the named persons’ spouses and offspring too. It also allows for the government to add properties or assets to the list of by virtue of decree. It only allows the government to add people to the list who are abroad.
Articles 2, 3 and 4 give the power to a judge appointed by the Minister of Justice as administrator to do as he pleases with these assets including selling them or in the case of companies shutting them down.
Article 8 does not give the right to those listed to seek justice via either a civil or commercial court in Libya. Articles 10, 11, 12 and 13 invite any parties that feel that they have been harmed by this law to present their case to the administrator to look into and to follow the specifically set appeals process.