On Sunday, the Libyan Investment Authority (LIA) launched arbitration proceedings against Belgium at the International Centre for Settlement of Investment Disputes (ICSID), an international arbitration institution.
This legal action responds to a July decision by a Brussels court to seize approximately €15 billion of Libyan assets, intensifying a longstanding dispute involving Belgian Prince Laurent.
Reports from The National News indicate that Prince Laurent, formerly next in line for the Belgian throne, claims €67 million from these frozen Libyan assets. The funds were originally allocated for projects managed by the Global Fund for Sustainable Development, aimed at reforesting desert areas in Libya.
William Kirtley, a specialist in international arbitration law, expressed surprise at the LIA’s decision to pursue arbitration. He noted that state-affiliated institutions like LIA are particularly exposed to challenges in such legal arenas.
Kirtley explained that arbitration processes resemble court lawsuits and typically span about three years. He speculated that the LIA is seeking a more neutral venue than the Brussels courts, which they believe have not served their interests well.
The dispute traces back to 2008 when a contract was first signed between Libya’s General Secretariat for Development and the Belgian prince, only to be halted in 2011. Prince Laurent initially sought €37 million, plus interest accrued since then; this figure has now escalated to €67 million and continues to rise.
In a broader context, the international community had previously frozen Libya’s sovereign wealth funds, valued at $67 billion, to prevent them from being accessed by Gaddafi or his allies. These sanctions are still active due to ongoing civil strife in Libya, often referred to as a “civil war.”
In 2015, it was revealed that the LIA managed to transfer €2 billion in interest from €13 billion of the frozen funds held at Euroclear Bank in Belgium under sanctions.
Following this, Prince Laurent requested a criminal investigation into the LIA and the involved banks for potential embezzlement, money laundering, and criminal organization involvement, in efforts to reclaim his funds.
This legal confrontation led to the issuance and subsequent lifting of an Interpol Red Notice against Ali Mahmoud, the CEO of the Libyan Investment Authority.
The National News reached out to the LIA, the Belgian Foreign Ministry, and legal representatives of both parties, but responses were either non-committal or not forthcoming.
