The Libyan political factions are still continuing its power struggle with regards to who is the rightful chairman of the Libyan Investment Authority. An English judge is appointed to rule regarding the issue.
An English judge has been asked to decide on who is the lawfully appointed LIA chairman. The country now reflects a wide political conflict and has been torn apart by civil wars. The LIA is caught up in a clash between two rival chairmen as per Financial Times.
According to the Wall Street Journal, Hassan Bouhadi, who is based in Malta says the internationally recognized government in the eastern city of Tobruk approved him of taking over the fund. However, Tripoli-based Abdulmagid Breish said that he is the chairman. Although he stepped down from the LIA as chairman after a legal challenge, the Libyan court has reinstated him afterwards.
Mr. Justice Blair, the brother of former Prime Minister Tony Blair, is the one who has to decide which of the two men is the rightful chairman for the purpose of the UK litigation. However, the judge decided to adjourn the hearing until Libya's government of national accord will be put in place. A decision will make the fund's separate lawsuit against Goldman Sachs and Societe Generale move forward.
During the height of the credit boom, both Goldman and SocGen have been accused by the LIA of having wrongdoings over the trades taken over by the two banks. The banks, however, denied that they've committed any mistakes.
Experts said the two trials could be delayed due to the political chaos in Libya. As reported by ABC News, Libya has splintered since the overthrow of Moammar Gadhafi in 2011. The two rival governments have since been vying for control while the Islamic State group linked militants are also gaining strength despite the chaos.
The two LIA factions both wanted a legal clarity regarding the issue so that the case can move forward. The LIA is expected to recover billions of dollars if the litigations go their way.
