French bank faces suit over Gaddafi bribery claim
Publish date: 03 April 2014
Issue Number: 407
Diary: Legalbrief Forensic
The Libyan Investment Authority has accused Société Générale of helping to funnel bribes worth tens of millions of dollars to close associates of Saif al-Islam, the son of former Libyan leader Muammer Gaddafi, notes a Financial Times report.
It says the claim was made in a $1.5bn lawsuit filed against the French bank in London's High Court. SocGen said it planned to contest the legal claim against it, which it considered 'groundless and without substance'. The LIA alleges that SocGen paid at least $58m to Leinada, a Panamanian-registered company for advisory services related to $2.1bn of derivative trades that the Libyan sovereign wealth fund entered into with SocGen between late 2007 and 2009, according to the report. It states the suit comes as the US Securities and Exchange Commission has been looking into whether US financial institutions made inappropriate payments to officials for access to the LIA. Full Financial Times report