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Norway Central Bank to Decide Oil Fund Exclusions

Posted on 19 December 2014 by VRS  |  Email |Print

Norway’s government said Thursday that from Jan. 1 the central bank will take over deciding which companies to exclude from the portfolio of the country’s sovereign-wealth fund and that it would no longer have the final word. “The changes in the governing documents are a result of a long-term effort to strengthen the work on responsible investment management in the fund,” Finance Minister Siv Jensen said.
Ms. Jensen said the government wanted “better interaction” between the $845 billion fund’s use of ownership power and the exclusion mechanism. The government has previously said it wants to avoid speculation that the fund is used for political means………………………………………..Full Article: Source

Why table hudud bill now, PKR asks Kelantan PAS

Posted on 17 December 2014 by VRS  |  Email |Print

PKR today questioned the timing of a special state assembly meeting to discuss the implementation of hudud in Kelantan, just as Umno and Barisan Nasional were thrust firmly under the 1Malaysia Development Berhad (1MDB) spotlight.
Its central committee member, Latheefa Koya, asked why the issue was brought up at the same time when the controversial sovereign wealth fund was dominating the headlines in the country…………………………………..Full Article: Source

Emperador OKs issuance of shares to GIC affiliate

Posted on 16 December 2014 by VRS  |  Email |Print

Andrew Tan-led Emperador Inc. has approved the issuance of shares of up to P22 billion to Arran Investment Private Limited, an affiliate of Singapore’s sovereign wealth fund GIC.
In a disclosure to the stock exchange on Monday, Emperador said its stockholders ratified the issuance of common shares and equity linked securities convertible to common shares, which will be taken from the unissued shares of the Emperador, under the terms and conditions approved by the Board of Directors……………………………………..Full Article: Source

Despite probe, Najib must answer questions on 1MDB, says DAP leader

Posted on 15 December 2014 by VRS  |  Email |Print

Prime Minister Datuk Seri Najib Razak cannot turn his back on 1Malaysia Development Berhad (1MDB) just because police have begun their investigations into the alleged improprieties in the management of the sovereign wealth fund, said Lim Kit Siang.
The Gelang Patah MP, who was in Subang Jaya today to address DAP Johor members attending a two-day retreat, also questioned if the police investigation was just for show. “Are the police serious in carrying out investigations into the alleged improprieties or are they just putting on a show for the public?” Lim asked………………………………………..Full Article: Source

Umno leader’s police report against 1MDB proves fund in trouble, says DAP

Posted on 15 December 2014 by VRS  |  Email |Print

The police report lodged against controversy-ridden 1Malaysia Development Berhad (1MDB) by an Umno leader yesterday is proof that the company’s finances are in shambles even as it continues the struggle to pay off its burgeoning debts, said DAP’s Tony Pua.
He said the fact that an Umno leader had lodged the report against his own party leaders including Prime Minister Datuk Seri Najib Razak – who is 1MDB chairman – meant that the complainant either had a “death wish” or had strong evidence of the fund’s RM42 billion debt crisis………………………………………..Full Article: Source

Penang Umno leader lodges report against 1MDB

Posted on 15 December 2014 by VRS  |  Email |Print

A Penang Umno division leader today lodged a report against Putrajaya’s controversial sovereign wealth fund 1Malaysia Development Berhad over the mismanagement of its finances. Khairuddin Abu Hassan, who is Batu Kawan division leader, lodged the report at the Dang Wangi district police headquarters earlier today.
He said he was “suspicious” and doubted the financial management of 1MDB, which he noted was not transparent. Calling for a “detailed and comprehensive” investigation, Khairuddin urged authorities to interrogate 1MDB’s directors, and representatives of any company that might be implicated………………………………………..Full Article: Source

Cabinet discussed 1MDB issue at this week’s meeting, say sources

Posted on 15 December 2014 by VRS  |  Email |Print

The controversy-ridden 1Malaysia Development Bhd (1MDB) was discussed at this week’s Cabinet meeting chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin after a minister brought up the issue, sources confirmed today.
The country’s second sovereign wealth fund has been under the spotlight for its debts and inability to submit accounts on time, attracting criticisms from opposition lawmakers and even former prime minister Tun Dr Mahathir Mohamad. Prime Minister Datuk Seri Najib Razak is away on an official visit to South Korea this week and did not attend the Cabinet meeting………………………………………..Full Article: Source

Norway oil fund lifts investment ban on Dongfeng

Posted on 11 December 2014 by VRS  |  Email |Print

Norway’s $860 billion oil fund has lifted its investment ban on Dongfeng Motor Group Co and will no longer keep Randgold Resources Ltd. on observation for possible exclusion, the finance ministry said in a statement on Wednesday.
The government regularly reviews the oil fund’s investments and puts companies either on a watch list or excludes them from the fund’s portfolio if the ministry’s ethics council observes ethical violations in the firms’ operations………………………………………..Full Article: Source

Khazanah has the right to appoint Mueller

Posted on 10 December 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd has the right to appoint Christoph R. Mueller as chief executive officer-designate to lead the restructured Malaysia Airlines (MAS) as it is injecting the RM6 billion investment to revive the national carrier, says Abdul Wahid Omar.
The Minister in the Prime Minister’s Department said the 12-point MAS Recovery Plan outlined by the government’s investment holding arm, the carrier’s major investor, clearly indicates the need for talents with the necessary skills to help turn MAS profitable………………………………………..Full Article: Source

Sovereign Wealth Fund Searches For Tailored Benchmark Index

Posted on 01 December 2014 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s largest, says designing benchmark indexes that give its portfolio managers greater investing freedom will help drive up returns.
“A large investor may wish to carve out some capital and allocate risk to active portfolio managers with the aim of enhancing the fund return,” it said in a report published on its website today. “A large investor may wish to design non- market capitalization weighted benchmarks to maximize the benefit to the investor of the stock picking ability of active portfolio managers.”……………………………………….Full Article: Source

Libya sues Goldman Sachs

Posted on 28 November 2014 by VRS  |  Email |Print

The Libyan Investment Authority claims that Goldman Sachs made $350m – and cost the country over $1 billion – by tricking “naïve” staff into paying vastly over the odds for products that proved worthless. The sovereign wealth fund, which was created to maximise oil profits and is worth $66 billion, bought complex derivatives from Goldman Sachs, which then collapsed in value in 2008, losing the Libyan Investment Authority $1 billion in the process.
Nine financial products were purchased in total, all of which were “bets” on the future share price of companies such as Citigroup and EDF. The fund says that its staff thought that they were buying actual shares in the companies and were duped by Goldman Sachs………………………………….Full Article: Source

Goldman Ordered by Judge to Disclose Profits on Libya Trades

Posted on 26 November 2014 by VRS  |  Email |Print

Legal woes continue to trouble The Goldman Sachs Group, Inc. The Wall Street banking giant has been ordered by a High Court judge in London to disclose the amount of profit it derived from nine complex derivatives trades associated with the $1 billion lawsuit filed against the bank by the Libyan Investment Authority (LIA).
LIA, a sovereign wealth fund, filed a lawsuit in Jan 2014, pertaining to Goldman’s dealings with the LIA in the earlier part of 2008, which led to significant losses for LIA. At a London court hearing on Monday, Judge Vivien Rose asked Goldman to reveal its margin, profit and loss on the trades, starting from the day those were booked as well as a month later. The bank is also ordered to reveal how the profits were calculated and the amount of reserves it set aside for each trade………………………………..Full Article: Source

High court judges orders Goldman Sachs to disclose Libya profits

Posted on 25 November 2014 by VRS  |  Email |Print

Libyan sovereign wealth fund, which is suing Goldman, estimates the US investment bank made $350m in upfront profit on nine derivatives products. A high court judge has ordered Goldman Sachs to reveal how much profit it made on a deal that lost Libya’s government more than $1bn when financial bets turned sour.
The Libyan Investment Authority, created in 2006 to look after the country’s oil riches, accused the Wall Street bank of duping it into making investments that its “naive” staff didn’t understand. The $66bn sovereign wealth fund is suing Goldman in the high court in London after it lost $1bn from investing in complex derivative investments that collapsed in value during the 2008 financial crisis…………………………………Full Article: Source

Goldman Sachs Told to Reveal Libya Transaction Profits

Posted on 25 November 2014 by VRS  |  Email |Print

A London judge said Goldman Sachs Group Inc. (GS) should reveal how much money it made from transactions with Libya’s sovereign wealth fund at the center of a $1 billion lawsuit. The bank should tell the Libyan Investment Authority what its profits were on the disputed trades, and how it calculated them, Judge Vivien Rose said at a London court hearing.
The LIA is suing Goldman over money lost on 2008 derivative deals that it says weren’t appropriate for the wealth fund. Part of the fund’s case is that Goldman made excessive profits from the trades. “It should be a reasonably straightforward matter for Goldman Sachs to tell everybody what they did,” Judge Rose said…………………………………Full Article: Source

Costello defends Future Fund tax bill

Posted on 14 November 2014 by VRS  |  Email |Print

Future Fund chairman Peter Costello has defended the amount of tax the sovereign wealth fund pays, saying it has ’sovereign immunity’ when it invests overseas. The government-owned Fund was named along with other Australian companies for using Luxembourg as a base in which to lower global taxes in one of the biggest global tax leaks in history, published last week.
Thousands of leaked documents released by the International Consortium of Investigative Journalists revealed how Australian and multinational companies used accounting firm PricewaterhouseCoopers to strike deals in Luxembourg to shift profits and avoid tax…………………………………..Full Article: Source

Don’t bend the rules for 1MDB, Anwar tells Putrajaya

Posted on 14 November 2014 by VRS  |  Email |Print

Datuk Seri Anwar Ibrahim warned Putrajaya against manipulating the checks and balances set out by the Treasury in order to counter the allegations against 1Malaysia Development Berhad (1MDB), saying that the fund is now “the government’s greatest liability”.
The former deputy prime minister, who also served as finance minister from 1992 up to his sacking in 1998, insisted that there was no difference between a letter of support and a sovereign guarantee as Putrajaya is still liable if the state investment arm fails to service its loan………………………………….Full Article: Source

Libya fund sues France’s SocGen for $1.5 bn

Posted on 13 November 2014 by VRS  |  Email |Print

Libya’s sovereign wealth fund is suing French bank Societe Generale for $1.5 billion (1.2 billion euros) for allegedly channelling bribes to allies of Moamer Kadhafi’s son, in a case hitting the London courts Wednesday.
The Libyan Investment Authority (LIA) is seeking compensation from the bank and from Walid Giahmi, an alleged associate of Seif al-Islam, for what it says is money that it lost on trades between 2007 and 2009. Libyan dictator Kadhafi was killed in 2011 during a NATO-backed uprising. Seif was long his father’s right-hand man and heir apparent………………………………………..Full Article: Source

SocGen denies allegations of funnelling bribes in LIA lawsuit

Posted on 13 November 2014 by VRS  |  Email |Print

Société Générale and a Libyan businessman have denied “extremely serious” allegations that they helped funnel bribes to influence the Libyan Investment Authority to enter into complex trades, the High Court has been told.
The LIA, now under new management since the fall of Colonel Gaddafi in 2011, has filed a $1.5bn lawsuit against the French bank as well as Libyan businessman Walid Al-Giahmi and a Panamanian company Leinada, which was controlled by Mr Giahmi, in relation to payments relating to five controversial trades………………………………………..Full Article: Source

SocGen Denies Bribing Qaddafi Friend in Libya Fund Case

Posted on 13 November 2014 by VRS  |  Email |Print

Societe Generale SA denied paying bribes to Libya’s sovereign wealth fund, saying $58 million in payments to a family friend of Muammar Qaddafi were to help the bank “navigate the unfamiliar and difficult” market in the country.
The payments to Walid Giahmi’s company, Leinada Inc., were for “introductory, market intelligence and follow-up services,” the Paris-based bank said in documents at the first U.K. court hearing in the Libyan Investment Authority’s lawsuit against the French lender………………………………………..Full Article: Source

Zimbabwe: Sovereign Wealth Fund Act Takes Effect

Posted on 13 November 2014 by VRS  |  Email |Print

Legislation to establish the Sovereign Wealth Fund is now in place following the gazetting of the Sovereign Wealth Fund Act on Monday, a landmark development which seeks to establish a facility whose objective is to reserve income from the country’s finite mineral resources for the benefit of future generations.
The fund will be driven primarily by 25 percent of all royalties on mineral exports, which will be deposited, along with special dividends on the sales of diamonds, gas, granite and other minerals through the Zimbabwe Mining Development Corporation. The Reserve Bank of Zimbabwe will be the primary custodian of the fund………………………………………..Full Article: Source

Mugabe signs Sovereign Wealth Fund bill

Posted on 13 November 2014 by VRS  |  Email |Print

The Treasury will, with immediate effect, remit a quarter of mining royalties to the Sovereign Wealth Fund (SWF) after President Robert Mugabe on Monday signed into law a bill to set up the fund, which is meant to secure investments for future generations and support economic growth.
A sovereign wealth fund is a state-managed pool of money drawn from the country’s reserves, set aside for investment in strategic areas that benefit the economy and its citizens. Funding for sovereign wealth funds is typically accumulated from revenues generated from the export of a country’s natural resources, such as minerals………………………………………..Full Article: Source

1MDB already audited by a ‘big company’, A-G says

Posted on 13 November 2014 by VRS  |  Email |Print

The Auditor-General’s Department did not audit 1Malaysia Development Bhd (1MDB), which is accused of financial irregularities, because it was already audited by “a big international” firm, Auditor-General Tan Sri Ambrin Buang said.
“As far as their accounts is concerned, there is no need to come back and open their books because they have already been audited by one of the big boys,” Ambrin told a town hall meeting on the third series of the 2013 A-G report held at the Angkasapuri here………………………………………..Full Article: Source

Court Dismisses Gbajabiamila, Others’ Suit on Excess Crude Account

Posted on 12 November 2014 by VRS  |  Email |Print

A Federal High Court in Abuja has dismissed a suit filed by the Minority Leader of the House of Representatives, Femi Gbajabiamila and four other members of the House, challenging the legality of the creation of the Excess Crude Account by the federal government.
Justice Abdulkadir Abdulkafarati, in a judgment on Tuesday, held that the suit was an abuse of court process. He said about five similar suits were currently pending before the Supreme Court. The judge upheld the defendants’ objection, noting that the Attorneys-General of Taraba, Abia, Niger, Bauchi and Oyo States had filed similar suits, which are now awaiting the determination of the Supreme Court. As against the argument by the defendants, Justice Abdulkafarati held that the plaintiffs had the locus standi to institute the case………………………………………..Full Article: Source

Chua Tee Yong sparks protest in Parliament after refusing to discuss 1MDB

Posted on 12 November 2014 by VRS  |  Email |Print

A ruckus broke out in Parliament today when Deputy Finance Minister Datuk Chua Tee Yong refused to answer questions on the controversial state sovereign fund, 1Malaysia Development Bhd (1MDB).
Tony Pua (DAP-Petaling Jaya Utara) had asked Chua about Putrajaya’s letter of support for 1MDB as well as a land deal for the relocation of defence units from land marked for government development project, Bandar Malaysia………………………………………..Full Article: Source

Leak reveals Future Fund and multinationals’ secret offshore tax deals

Posted on 07 November 2014 by VRS  |  Email |Print

Directors of the Australian government’s Future Fund as well as PricewaterhouseCoopers, Macquarie and AMP could be forced to face a Senate inquiry into tax avoidance following a global investigation into secret tax deals in Luxembourg.
Thousands of leaked documents published by the International Consortium of Investigative Journalists on Thursday revealed how Australian and multinational companies used accounting firm PwC to strike deals in Luxembourg to shift profits and avoid tax………………………………………..Full Article: Source

Penang warns 1MDB of tough road to approval for Air Itam project

Posted on 05 November 2014 by VRS  |  Email |Print

Penang has warned 1Malaysia Development Bhd (1MDB) that it will be an uphill task to gain planning approvals for its development project on the 234 acres land if it deviates from its promise to build affordable housing there.
Penang Chief Minister Lim Guan Eng said the sovereign wealth fund will also face difficulties due to unresolved squatter issues on the land. “I want to warn 1MDB that we will not allow them to throw out the present land tenants for a project other than affordable homes,” he said………………………………………..Full Article: Source

Slow Progress on SWF Governance Standards

Posted on 31 October 2014 by VRS  |  Email |Print

Governance and transparency standards at some of the world’s largest sovereign wealth funds (SWFs) are still falling below agreed levels, according to a study. Geneva-based political risk consultancy GeoEconomica found that only nine of 31 SWFs surveyed had complied with a “good governance and financial disclosure standards” agreement laid out in 2008, known as the Santiago Principles.
This is up only slightly from the 2013 study, which found six funds in compliance with the principles. Funds run by Gulf countries were particularly criticised in the latest report………………………………………..Full Article: Source

Norway is right to reassess its sovereign wealth fund

Posted on 10 October 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is large (Ministry of Finance 2013). At $890 billion, it is the largest sovereign wealth fund in existence, holding over 1% of almost every listed stock in the world.
However, as the fund approaches $180,000 for every man, woman, and child in Norway, there have been calls to reassess the way it is managed – from divesting oil and gas stocks to reducing the amount spent each year. Recent research provides some support for these calls, by treating above- and below-ground wealth as two sides of the same coin for the first time (van den Bremer et al. 2014)………………………………………..Full Article: Source

Norway to boost oil revenue spending in 2015 to fund tax cuts

Posted on 09 October 2014 by VRS  |  Email |Print

Norway cut its growth forecast on Wednesday, citing lower oil prices and investments, and said it may lift a cap on how much of the country’s $850 billion sovereign wealth fund it can spend each year. In its first budget since taking power last year, the centre-right government of Prime Minister Erna Solberg said it will spend 3 percent of the fund’s value in 2015, up from 2.8 percent in 2014, using the money to pay for tax cuts.
That is still below the 4 percent cap on spending from the fund, into which revenues from oil, Norway’s biggest industry, are routed. But Finance Minister Siv Jensen said she was appointing a commission to examine whether the rule, for long a sacred cow of fiscal policy, needs to be changed………………………………………..Full Article: Source

Goldman had ‘inappropriate’ relationship with Libyan fund

Posted on 07 October 2014 by VRS  |  Email |Print

A lawyer seconded to the Libyan Investment Authority, which is suing Goldman Sachs over $1 billion of trades that ended up worthless, was “shocked” by the bank’s “inappropriate” relationship with the fund, according to court filings.
In a suit filed at London’s High Court, the Libyan Investment Authority (LIA) claims the Wall Street investment bank exploited a position of trust by encouraging the sovereign wealth fund to invest more than $1 billion in a series of equity derivatives trades that expired as worthless in 2011………………………………………..Full Article: Source

High Court Rejects Abu Dhabi Fund’s $7.5B Citigroup Dispute

Posted on 07 October 2014 by VRS  |  Email |Print

The U.S. Supreme Court on Monday rejected a bid by Abu Dhabi’s massive sovereign wealth fund to continue pursuing Citigroup Inc. for funds lost in a $7.5 billion investment deal.
The high court said in a one-line order released Monday morning that it would not review an arbitration panel’s 2011 ruling in favor of Citigroup and against the Abu Dhabi Investment Authority. Representatives for Abu Dhabi were not immediately available for comment Monday. Citigroup declined to comment………………………………………..Full Article: Source

Goldman Special Relationship With LIA Fund Ends in Court

Posted on 06 October 2014 by VRS  |  Email |Print

When the Libyan Investment Authority started out in 2007, it had about $60 billion, office space in Tripoli and a lot to learn. Goldman Sachs Group Inc., keen to do business with the sovereign wealth fund, offered to help.
Goldman Sachs bankers gave LIA staff training at its London office and spent time in Tripoli showing them how to monitor markets. The bank characterized it as a “special trusting type of relationship,” the LIA said in documents in a London lawsuit………………………………………..Full Article: Source

SWF: Between constitutional and development imperatives

Posted on 01 October 2014 by VRS  |  Email |Print

The legality and desirability of the institution of a Sovereign Wealth Fund (SWF) in Nigeria are not one and the same thing. While determination of the former is an exclusive preserve of the law court and at the moment sub judice, the latter which is not a subject of dispute before any adjudicating body is, however, the focus of this piece.
SWFs the world over are attaining a position of universal prominence since the 2008 global economic recession when they played critical stabilizing role, and their managers, now widely classified among the new “Movers and Shakers” of the post-crisis world economic order, though may share common prospects; they essentially are faced with divergent challenges across different climes – Nigeria’s experience is a case in point………………………………………..Full Article: Source

Probe into 1MDB financial misconduct now, says anti-graft group

Posted on 01 October 2014 by VRS  |  Email |Print

Parliament’s Public Accounts Committee (PAC) must begin an immediate inquiry into the troubled sovereign fund 1Malaysia Development Bhd (1MDB), an anti-corruption watch group said.
The Centre to Combat Corruption and Cronyism (C4) said today the PAC should call “all actors involved” for the inquiry into the fund’s massive debts, dubious land deals and secrecy over its transactions as 1MDB was a burden to the country’s national debt. It said Prime Minister Datuk Seri Najib Razak, who is chairman of 1MDB’s advisory board, should provide an answer to the fund’s troubled developments………………………………………..Full Article: Source

Khazanah hopes govt enacts MAS Act early next year

Posted on 30 September 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd hopes the government will enact the “MAS Act” early next year, before MAS NewCo is set up in the middle of next year. According to the RM6 billion recovery plan for MAS, its shares will be delisted from Bursa Malaysia by year-end and a new company (Newco) will be created to carry on the airline’s business.
To facilitate the restructuring of the national carrier in a comprehensive, timely and holistic manner, the government will table a new law in Parliament called the MAS Act. Managing Director Tan Sri Azman Mokhtar said the act is an important enabling act, which the Prime Minister is expected to table in Parliament next week……………………………………….Full Article: Source

Nigeria: Suit On Sovereign Fund Adjourned Till Jan 26

Posted on 26 September 2014 by VRS  |  Email |Print

The Supreme Court on Tuesday said the legal tussle over the creation of the Sovereign Wealth Fund (SWF) was not ready for hearing. The case has been fixed for January 26, 2015. Presiding judge, Justice Mahmud Mohammed, said the case was not ripe for hearing because vital documents were not in the case file.
“In order to hear the case, it is necessary for counsels to go to the registry and make sure that all necessary processes were in the file,” Mahmud said. The sovereign wealth fund manages the surplus income produced from Nigeria’s excess oil reserves on behalf of the states and federal governments………………………………………..Full Article: Source

Goldman denies duping Gaddafi

Posted on 23 September 2014 by VRS  |  Email |Print

Goldman Sachs responds to accusations that Libya’s sovereign wealth fund was cheated out of more than $1bn during the Gaddafi era. The Telegraph reports that Goldman Sachs has hit back at allegations that the Wall Street giant duped Libya’s $60bn sovereign wealth fund into trades that lost the country vast sums of money while making the bank hundreds of millions in profits.
In court documents, Goldman denied that the Libyan Investment Authority (LIA) had been ‘financially illiterate’ when entering into trades that proved worthless, and rejected claims that its bankers had cosied up to LIA officials. It is also claiming unspecified damages against the LIA………………………………………..Full Article: Source

Goldman Sachs Files Counter Claim Against Libyan Investment Authority

Posted on 23 September 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc (GS) has defended itself against the allegations from the Libyan Investment Authority (LIA). Earlier this year, the Libyan Investment Authority filed a suit against Goldman Sachs, alleging that the bank had forced it to enter several equity derivative transactions worth more than $1 billion.
LIA added that these transactions were extremely risky and poorly documented by the investment bank, which sought to take advantage of the limited financial and legal expertise of LIA and its unsophisticated employees. LIA maintained that the disputed deals offered by Goldman adversely affected the trust and confidence the wealth fund had established with the investment bank………………………………………..Full Article: Source

Nigeria: Sovereign Wealth Fund: Between Legality and Desirability

Posted on 22 September 2014 by VRS  |  Email |Print

Nigeria’s Supreme Court will be entertaining a suit filed by the 36 states of the federation against the federal government on the legality of the Nigeria’s Sovereign Wealth Fund (SWF). But the legality and desirability of the institution of a SWF in Nigeria are not one and the same thing.
The legality and desirability of the institution of a Sovereign Wealth Fund (SWF) in Nigeria are not one and the same thing. While determination of the former is an exclusive preserve of the law court and at the moment sub judice, the latter which is not a subject of dispute before any adjudicating body is, however, the focus of this piece………………………………………..Full Article: Source

Goldman defence lifts veil on LIA relationship

Posted on 22 September 2014 by VRS  |  Email |Print

It is a fiercely contested $1bn lawsuit over disputed derivatives transactions and has pitted Libya’s Investment Authority against investment bank Goldman Sachs.
But behind the dry subject matter, the suit has thrown up colourful allegations that the bank offered training programmes, gifts, overseas trips and even a much coveted internship as it sought to win business from the sovereign wealth fund set up to invest the country’s vast oil wealth………………………………………..Full Article: Source

Goldman Sachs reveals ties to Gaddafi-era Libya fund

Posted on 22 September 2014 by VRS  |  Email |Print

Goldman Sachs has admitted in court documents to having used small gifts, occasional travel and an internship to cement its ties with Libya’s sovereign wealth fund under Muammar Gaddafi, the Financial Times reported today.
The details were in the investment bank’s defence to a lawsuit filed by the Libyan Investment Authority (LIA) in London in January, which accused Goldman Sachs of exploiting its position to make money on failed derivative trades………………………………………..Full Article: Source

SEC probing Goldman Sachs internship for brother of Libyan ex-official: WSJ

Posted on 22 September 2014 by VRS  |  Email |Print

U.S. regulators are investigating a Goldman Sachs Group Inc (GS.N) internship for the brother of a former official at Libya’s sovereign wealth fund and perks allegedly offered by the bank to the fund, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
As part of an ongoing investigation into Goldman’s ties to Libya’s sovereign wealth fund, the Securities and Exchange Commission is reviewing the company’s decision in June 2008 to hire the brother of Mustafa Zarti, then deputy chief of the Libyan Investment Authority, as an intern, the WSJ report said………………………………………..Full Article: Source

Sovereign wealth funds cheer FPI framework; double assets in 10 months

Posted on 22 September 2014 by VRS  |  Email |Print

Recent regulatory changes introduced by the Securities and Exchange Board of India (Sebi) with regards to foreign investors seem to have gone down well with sovereign wealth funds (SWFs), who have more than doubled their equity assets in the last 10-12 months.
Just a couple of months after Sebi issued the draft regulations for foreign portfolio investor (FPI) regime, SWFs’ assets under custody (AUC) surged to their highest ever at $18.07 billion in December, 2013. Since then, SWFs have further raised their equity holdings, with AUCs surging past $24 billion — 150% higher than the levels seen just before the draft in September 2013………………………………………..Full Article: Source

Sovereign wealth funds cheer FPI framework; double assets in 10 months

Posted on 19 September 2014 by VRS  |  Email |Print

Recent regulatory changes introduced by the Securities and Exchange Board of India (Sebi) with regards to foreign investors seem to have gone down well with sovereign wealth funds (SWFs), who have more than doubled their equity assets in the last 10-12 months.
Just a couple of months after Sebi issued the draft regulations for foreign portfolio investor (FPI) regime, SWFs’ assets under custody (AUC) surged to their highest ever at $18.07 billion in December, 2013. Since then, SWFs have further raised their equity holdings, with AUCs surging past $24 billion — 150% higher than the levels seen just before the draft in September 2013……………………………………..Full Article: Source

Tanzania Sets Up Special Unit to Scrutinise Gas Revenues and Wealth Fund

Posted on 26 August 2014 by VRS  |  Email |Print

Tanzania’s government is forming a special unit to monitor its natural resource revenues from major gas discoveries that promise to lift the country from poverty and free it from dependency on foreign aid in the coming decades.
The east African nation has enough natural gas, more than 50.5 trillion cubic feet discovered so far, to provide energy independence and bring significant export revenues. But Tanzania lacks experience in exploiting oil and gas, so relies on contracts with foreign companies such as Statoil of Norway and ExxonMobile to develop its immense offshore finds………………………………………..Full Article: Source

Societe Generale’s Libya case to run to court

Posted on 25 August 2014 by VRS  |  Email |Print

French bank has opted against getting $1.5bn bribery case stemming from Gaddafi days thrown out. Societe Generale has opted to allow a bribery case brought by Libya’s sovereign wealth fund to go to court, having previously indicated that it would attempt to have the case thrown out.
The French bank is accused by the Libyan Investment Authority (LIA), which is believed to control about $60bn (£36bn) of the country’s wealth, of paying some $58m in bribes to key officials in the Gaddafi regime and at the top of the fund to smooth over trades that lost the LIA hundreds of millions, in the years before Muammar Gaddafi was overthrown in 2011………………………………………..Full Article: Source

Libyan sovereign wealth fund set to sue SocGen in alleged bribery case

Posted on 25 August 2014 by VRS  |  Email |Print

Société Générale has decided against filing a summary judgment application in the UK High Court over its earlier plea to have a bribery-linked lawsuit filed against it by Libya’s sovereign wealth fund to be dismissed.
The Libyan Investment Authority, which apparently oversees assets worth almost $60bn, has charged SocGen with paying about $58m in bribes to influential members of the erstwhile Gaddafi regime - including senior LIA executives - to smooth over transactions that cost the state-backed fund hundreds of millions of dollars………………………………………..Full Article: Source

Goldman withdraws attempt to stop $1bn Libya fund dispute

Posted on 20 August 2014 by VRS  |  Email |Print

Goldman Sachs has withdrawn an application to have a $1bn lawsuit filed by the Libyan Investment Authority, a former client, thrown out of an English court ahead of trial. The US investment bank has withdrawn its request for a summary judgment in the dispute lodged at the High Court, it confirmed on Tuesday.
A summary judgment is when a matter is determined before trial, and Goldman’s withdrawal of its application removes one hurdle that the LIA would have had to overcome before getting a full hearing of the evidence in court………………………………………..Full Article: Source

Goldman to face Libya’s sovereign wealth fund in court over trades

Posted on 20 August 2014 by VRS  |  Email |Print

Goldman Sachs and Libya’s sovereign wealth fund are set to meet in a London court over claims the Wall Street bank exploited a position of trust by encouraging the fund to invest more than $1 billion in trades that ended up worthless.
Goldman had filed a summary judgment application - a request to decide a claim without going to trial - in the case brought by the Libyan Investment Authority (LIA) in January, but has recently withdrawn it, the LIA said in a statement. “Following the serving of the LIA’s reply evidence, Goldman Sachs has withdrawn its summary judgment application,” the LIA said………………………………………..Full Article: Source

Tanzania sets up special unit to scrutinise gas revenues and wealth fund

Posted on 15 August 2014 by VRS  |  Email |Print

Tanzania’s government is forming a special unit to monitor its natural resource revenues from major gas discoveries that promise to lift the country from poverty and free it from dependency on foreign aid in the coming decades.
The east African nation has enough natural gas, more than 50.5 trillion cubic feet discovered so far, to provide energy independence and bring significant export revenues. But Tanzania lacks experience in exploiting oil and gas, so relies on contracts with foreign companies such as Statoil of Norway and ExxonMobile to develop its immense offshore finds………………………………………..Full Article: Source

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