While the bribery scandal in Mozambique is drawing to a close, Credit Suisse already faces allegations from yet another African nation. The Libyan state fund has filed a lawsuit against the Swiss bank in London.
The Libyan Investment Authority (LIA) – Lybia’s state fund – on Monday filed a suit against Credit Suisse in London, «Bloomberg» reported.
Libyan Businessman Focus of Attention
The case is likely in connection with activities of Walid Al-Ghiahmi, a businessman who is said to have accepted briberies and who is listed as a defendant in the case filed Monday.
An earlier case brought by the fund ended with the payment of 1 billion euros ($1.1 billion) by Société Générale, also in connection with Al-Giahmi’s business affairs, «Bloomberg» said. At the time, LIA demand to see documents in connection with the businessman and four banks, among them Credit Suisse.
Founded by Muammar Ghaddafi
Credit Suisse didn’t comment on the new case filed in London. In the Mozambique case currently under consideration in U.S. courts, former employees of the Swiss bank stand accused of having accepted briberies. The two cases have nothing in common.
Libya’s state fund was founded in 2006 under the regime of Muammar Ghaddafi. Its aim was to reduce the country’s reliance on the revenues from the export of oil. The fund is being fed with oil revenues.
Distant Memories
Urs Rohner, the chairman of Credit Suisse, will have had mixed feelings when he became aware of the new lawsuit. A number of years ago, a group of prominent businessmen invested hundreds of millions of francs in Libya – among them Rohner, ex-Nestlé Chairman Peter Brabeck, ex-Bank am Ballevue head Martin Bisang and Prince Michael of Liechtenstein. The group invested the money into a project that included a luxury hotel, shops and a marina in Tripolis. Their co-investor: the Libyan state fund.
The project foundered when Ghaddafi chose to take two Swiss as hostages, prompting a period of hostility between the two countries, as Swiss business paper «Handelszeitung» reported at the time. While the relationship between Libya and Switzerland was seriously affected, the Swiss investor group with Urs Rohner received their money back.
