From: Gregory Brown To: undisclosed-recipients:; Bcc: [email protected] Subject: WSJ: Ex-Gadhafi Officials Remain At Libyan Sovereign Wealth Fund Date: Tue, 20 Sep 2011 17:06:02 +0000 Attachments: WSJ.pdf; WSJ_Ex_Gadhafi_Officals_Remain_ALLibyan_Sovereign_Wealth_Fund_09_20_2011.pdf Article originally published by the Wall Street Journal WSJ: Ex-Gadhafi Officials Remain At Libyan Sovereign Wealth Fund --The new Libyan government is said to be examining the Libya Investment Authority and its dealings with foreign banks --But the man in charge fears his scrutiny could be hindered by the continuing presence of Gadhafi- era fund managers --One rebel leader said the government should create an independent audit commission with the power to bring fraud charges By Benoit Faucon As the dust settles in the streets of Tripoli after the fall of longtime Libyan ruler Col. Moammar Gadhafi, the new government will have much to do to disentangle itself from the past because many of its officials served during the 42-year Gadhafi era. While the government continuity can be help to stabilize the battle-scarred country, there are many questions about how Gadhafi's government invested the country's vast oil wealth. Mahmoud Badi, the person put in charge by the new government to examine the $65 billionLibya Investment Authority, says he is scrutinizing dealings with foreign banks, such as Societe Generale SA or Goldman Sachs Group Inc. The investments undertaken by the French bank on behalf of Libya lost about $700 million while transactions carried by Goldman Sachs lost $ 1.4 billion. Both banks declined to comment. "Losses of the [Investment Authority] were not less than $3 billion and might go to $6 billion," he said recently. The Wall Street Journal previously reported the U.S. Securities and Exchange Commission was examining a $50 million payment offered by Goldman Sachs to the Investment Authority for an outside advisory firm owned by a relative of t