An investigation by the Organized Crime and Corruption Reporting Project (OCCRP) has found that a brother-in-law of Libya’s long-time leader, Muammar Gaddafi moved millions to purchase a ferry for war-torn Sierra Leone into his personal bank account in Malta.
The investigation found that Abdusalam Abulghasem Abughila achieved personal profits through “nepotism and corruption” from investments that were directed to Sierra Leone during the Gaddafi era. The arrangement netted Abughila well over $1 million dollars, and he failed to pay $7 million owed to the Libyan authorities.
The scheme was uncovered by the OCCRP, and dates back to between 2008 and 2009. A Libyan state investment fund, LAIP, allocated some $4 million dollars to buy a new ferry for Sierra Leone, according to the Times of Malta newspaper.
According to confidential documents and banking records seen by the OCCRP, the Libyan African Investment Portfolio (LAIP) planned to buy a second ferry for Sierra Leone, having already purchased one in 2004.
The ferry was operated by Afrimpex Navigation Co. Ltd, a subsidiary of a company registered in Malta controlled by Abughila.
Abughila recommended adding a second ferry to the route, and LAIP agreed to invest $4 million into the project, with the vessel to be controlled by a new version of Afrimpex based in Belgium.
He owned three-quarters of the new company, while a LAIP subsidiary, the Libyan African Investment Company (LAICO) controlled the rest.
The original agreement stipulated that Afrimpex would purchase and operate the ferry, while paying 60% of profits to LAIP annually. In turn, LAIP would also retain ownership of the ferry, since it had fronted the money for its purchase.
However, according to the OCCRP, the money earmarked for the ferry was subsequently deposited into Abughila’s personal bank account, at Malta-based FIMBank, rather than a company bank account belonging to Afrimpex.
The ferry was then purchased by an offshore Panamanian company controlled by Abhughila rather than by Afrimpex directly, according to a filing by LAIP to a Belgian court.
Despite receiving $4 million to purchase the ferry, bank statements show that the vessel that was ultimately procured cost $2.6 million. It was paid for in two instalments, with one payment sent from Abhughila’s personal account, and the second from the offshore company.
The same Panama company, Almuhit, was also listed as the owner of the vessel instead of the LAIP, as was originally agreed.
Abhughila then drew up an agreement in which the Malta-based Afrimpex Navigation Co. Ltd would lease the ferry from Almuhit for $120,000 a year, between 2010 and 2014.
This meant Abhughila not only made off with $1.4 million in siphoned funds from the original ferry investment, the OCCRP said, but secretly arranged for his own company to make money off of its operation by retaining its ownership and leasing it back to Afrimpex.