By Claire Milhench
LONDON, May 17 (Reuters) - A dispute between Libya's $67 billion sovereign wealth fund and Societe Generale over alleged bribes paid to the company of a middleman linked to the Gaddafi family will be back in London's High Court on May 19 for a pre-trial hearing.
In the ongoing litigation, the Libyan Investment Authority (LIA) is pursuing Societe Generale for some $2.1 billion in relation to a series of disputed trades, including derivatives, entered into between late 2007 and 2009, before Colonel Muammar Gaddafi was ousted.
The hearing may provide an update on the timing of the case, which was expected to go to trial in January 2017.
SocGen is the second international bank to be pursued by the LIA in UK courts: it is also suing Goldman Sachs over advice given on $1 billion of trades made in 2008, claiming they were unsuitable and ultimately "worthless".
Goldman Sachs has denied the LIA's allegations and is contesting the case.
The LIA claims Societe Generale paid at least $58.5 million to a Panamanian-registered company called Lenaida for advisory services related to the disputed trades.
At the time, Lenaida was controlled by Libyan businessman Walid Giahmi, who is said to have been close to Gaddafi's son Saif. Giahmi is also named as a defendant in the suit.
Giahmi's representatives did not respond to repeated requests for comment. Lenaida has no representation and could not be contacted.
The sovereign fund claims that neither Lenaida nor Giahmi provided any legitimate services to Societe Generale. Rather, it alleges that the payments were bribes with the aim of influencing the LIA's decision to enter into the trades.
It cited no specific evidence but maintained that neither Lenaida or Giahmi had any discernible expertise in advising or structuring financial derivative transactions.
The French bank declined to comment on these specific allegations. However, in its annual report published in March, it said it refutes the allegations, and "any claim tending to question the lawfulness of these investments".
On April 8, 2014, the U.S. Department of Justice served Societe Generale with a subpoena requesting it produce documents relating to transactions with Libyan entities and individuals, including the LIA.
Societe Generale said it was cooperating with the U.S. authorities.
(Reporting by Claire Milhench Editing by Jeremy Gaunt) ((claire.milhench@thomsonreuters.com; +44)(0)(207 542 3571; Reuters Messaging: claire.milhench.thomsonreuters.com@reuters.net))
LONDON, May 17 (Reuters) - A dispute between Libya's $67 billion sovereign wealth fund and Societe Generale over alleged bribes paid to the company of a middleman linked to the Gaddafi family will be back in London's High Court on May 19 for a pre-trial hearing.
In the ongoing litigation, the Libyan Investment Authority (LIA) is pursuing Societe Generale for some $2.1 billion in relation to a series of disputed trades, including derivatives, entered into between late 2007 and 2009, before Colonel Muammar Gaddafi was ousted.
The hearing may provide an update on the timing of the case, which was expected to go to trial in January 2017.
SocGen is the second international bank to be pursued by the LIA in UK courts: it is also suing Goldman Sachs over advice given on $1 billion of trades made in 2008, claiming they were unsuitable and ultimately "worthless".
Goldman Sachs has denied the LIA's allegations and is contesting the case.
The LIA claims Societe Generale paid at least $58.5 million to a Panamanian-registered company called Lenaida for advisory services related to the disputed trades.
At the time, Lenaida was controlled by Libyan businessman Walid Giahmi, who is said to have been close to Gaddafi's son Saif. Giahmi is also named as a defendant in the suit.
Giahmi's representatives did not respond to repeated requests for comment. Lenaida has no representation and could not be contacted.
The sovereign fund claims that neither Lenaida nor Giahmi provided any legitimate services to Societe Generale. Rather, it alleges that the payments were bribes with the aim of influencing the LIA's decision to enter into the trades.
It cited no specific evidence but maintained that neither Lenaida or Giahmi had any discernible expertise in advising or structuring financial derivative transactions.
The French bank declined to comment on these specific allegations. However, in its annual report published in March, it said it refutes the allegations, and "any claim tending to question the lawfulness of these investments".
On April 8, 2014, the U.S. Department of Justice served Societe Generale with a subpoena requesting it produce documents relating to transactions with Libyan entities and individuals, including the LIA.
Societe Generale said it was cooperating with the U.S. authorities.
(Reporting by Claire Milhench Editing by Jeremy Gaunt) ((claire.milhench@thomsonreuters.com; +44)(0)(207 542 3571; Reuters Messaging: claire.milhench.thomsonreuters.com@reuters.net))
