The Board of Trustees working along with the Board of Directors will ensure mitigation against the current governance risks for Libyans' Sovereign Wealth Fund, which include risks such as:
- Funds depleted to finance recurrent expenditure.
- Funds used to finance conflict.
- Loss of funds from excessive risk taking or high management fees.
- Corruption.
During the meeting in Tripoli, the LIA Board of Trustees' outlined its commitment and priorities during the next 6 to 12 months as follows:
- Reforming the legal framework of the institute.
- Establishing good governance and transparency principles by ensuring the newly appointed governance committee at the LIA to continue to work with the Natural Resource Governance Institute in improving the LIA’s adherence to Santiago Principles.
- Enforcing separation of powers between the supervisory role of the Board of Directors, Board of Trustees and the executive.
- Re-establishing the Libyan Investment Authority’s standing and organisational reputation amongst international markets.
- Working on creating a stabilisation fund to support the budget deficit for development.
LIA’s funds are currently frozen and secured in accounts in and outside of Libya. Despite the potential for contests arising from Libya’s current political in-fighting, the LIA will administer its responsibilities ‘above the political fray’. Only the newly-appointed Board of Directors will have full control and authority over the assets as part of their focus to deliver LIA’s fiscal, commercial and strategic objectives.
(Source: LIA Trustees)
