LIA amends its internal rules to stop conflict of interest
By Sami Zaptia.
London, 30 August 2019:
The Libya Investment Authority (LIA) announced that it has amended its articles of association and those of companies affiliated to it to prevent conflict of interest through management holding more than one leading role.
It said that was doing this in its pursuit of Good Governance and Transparency and regards these moves as necessary strategic policies, in order to improve the proficiency of management and of its affiliated companies.
The move was approved during the LIA’s Extraordinary General Assembly meetings which took place in Tripoli on 25 August 2019. The amendment cover the operations of the Libyan Foreign Investment Company (LAFICO), Long Term Investment Portfolio (LTIP) and Libyan Africa Investment Portfolio (LAIP).
Furthermore, the move comes within the framework of executing the reform resolutions of the Faiez Serraj Government of National Accord No. 15/2018 and Circular No. 7 of the Libyan Audit Bureau regarding conflict of interest in the Boards of the Governmental Companies.
These relate to activating the article on the rules pertaining to Governance and Conflict of Interest, which states: The Chairman and board members of the LIA may not undertake any executive, supervisory or inspectional posts or join any board of companies affiliated to the LIA.
The article also relates to the rules pertaining to Governance and Conflict of Interest, which states: The CEO of the LIA or its affiliated Companies and their deputies may not be a chairman or a board member of any other affiliated company.
The LIA said that the reform will permit qualified Libyans the opportunity to share in the running of the country’s investments by allowing them to be nominated to take positions on the affiliated companies’ boards.
The move will affect first of all the LIA chairman himself, Ali Mahmoud, who has to decide whether he will remain as chairman or as executive manager. Others will also be affected and have to resign some posts.
It will be recalled that the LIA’s Board of Directors is chosen by the Board of Trustees which is headed by Faiez Serraj.