Belgian Prince Accused of Fraud in Failed Libyan Reforestation Project: Libyan Sovereign Wealth Fund Lodges Criminal Complaint

Background

• The Libyan Investment Authority (LIA), Libya’s sovereign wealth fund, has filed a criminal complaint against Prince Laurent of Belgium.
• The complaint, filed on Sept 3, 2021, alleges fraud, extortion, and unacceptable pressure by the prince during his involvement in a reforestation project in Libya.

Events Leading to the Complaint

• In 2008, Prince Laurent and Libyan officials signed a multimillion euro accord to reforest desert regions in inland Libya.
• The project came to a standstill due to the civil war in 2011.
• With Libya under international sanctions since then, the €14 billion sovereign wealth of the country is currently frozen at Brussels-based Euroclear.
• Prince Laurent claimed he was owed approximately €70 million by the Libyan Ministry for Agriculture.

Allegations of Misconduct

• The LIA alleges that these advances resulted in unacceptable pressure for settlement.
• They claim Prince Laurent misused his position as a public official.

Libyan Investment Authority’s Statement

• “We have provided factual information to the investigative judge, indicating, according to us, that Prince Laurent misused his position as a public official,” Christophe Marchand, one of the LIA’s legal representatives, stated.
• However, the press release from the Libyan Investment Authority does not provide further details about the financial aspects, terms of the contract, or the exact nature of the alleged fraudulent actions.

Belgian Prince’s Response

• Arnauts, a lawyer representing the Belgian prince, dismissed the allegations as “not serious.”
• He claimed it was an attempt by Libyan dignitaries to save face after they had suffered 13 losses in Belgian courts and in Luxembourg.