The rebels fighting in Libya are about to stare down a $65 bn problem: corruption in the country’s sovereign wealth fund. As the group continues to gain momentum against the Muammer Gaddafi regime, the issue of finding the company’s foreign assets begins – and that includes what’s under the Libyan Investment Authority’s control.
The sovereign wealth fund was established in 2006, and rebels believe that Gaddafi has used its assets for personal matters. The goal, according to an FT.com report, is to have a new board within the next three months. Since the uprising began, it looks as though many of the Libyan Investment Authority’s holdings have lost up to 40 percent of their value. Meanwhile, asset managers are still raking in hefty amounts in fees.