English court ruling confirms continued Malta operations of LIA

The English High Court today confirmed the continued operations of the Libyan Investment Authority (LIA) from Malta, and the protection for the LIA's on-going litigations in the English courts.

In a ruling the court noted that the Libyan House of Representatives and government based in the eastern city of Tobruk, have been acknowledged as legitimate by the British government and have achieved international recognition.

This comes as the UN-backed government of national accord attempts to gain recognition of the Tobruk government and the rival government based in Tripoli.

The divisions and conflict in Libya have not been restricted to the control of territory and the country’s rich oil resources but the instability has also brought the country’s main institutions to a standstill.

A number of Libyan institutions, including the major telecommunications company, LPTIC, and the investment authority, have opened offices in Malta and the squabble over the vast fortunes controlled by these institutions have reached the Maltese and English courts.

But today, the English High Court concluded that it would be premature at this time to make a final legal ruling on the third-party challenge to the authority of the LIA's Board in light of recent political developments.

The Judge noted the evidence of the Chairman, Hassan Bouhadi, that “the LIA continues to function out of Malta” and went on to confirm that “nothing in this judgment should be taken as casting any doubt on current arrangements” and that the decision to adjourn would have no impact on the receivership protecting the LIA's interests in its claims against Goldman Sachs International and Société Générale.

LIA chairman Hassan Bouhadi, , said “it is extremely reassuring to see the High Court acknowledging the international recognition of the House of Representatives a week after the UN Panel of Experts on Libya acknowledged the governance structure under which my Board of Directors operates.”

He added that “the sooner the parallel institution claiming to have authority over the LIA ends its false claims the sooner we can all move on and focus entirely on protecting the important litigations and growing the assets of the Libyan people.”

“Above all,” Bouhadi said, “the Board of Directors and I hope to see a Government of National Accord functioning as soon as possible and the LIA stands ready to play its part in any way it can.”