WikiLeaks: Gadhafi Turned Down Madoff

Even despotic leaders, it turns out, can make sound investment decisions.

Libyan leader Moamar Gadhafi turned down a chance to invest with Bernie Madoff and accused ponzi schemer Allen Stanford, according to a new diplomatic cable released by WikiLeaks. (The U.K.'s Telegraph has the full cable, dated January 28, 2010.)

In the cable, the head of the Libyan sovereign wealth fund, Mohamed Layas, claimed to control $32 billion in liquid assets, most of which was deposited at U.S. banks. Layas, according to the cable, was miffed at Libyan funds that were "mismanaged" by Lehman Brothers, the failed investment bank.

From the cable:

"Layas denied press reports that the LIA had invested USD 100 million with the infamous Allen Stanford. He said that he had personally written a letter to the "Financial Times" disputing the information, explaining that Stanford had approached the LIA in the middle of his crisis, offering a 7-8% share in his investment scheme, but Layas had refused. Layas also mentioned having been previously approached by Bernard Madoff about an investment opportunity, "but we did not accept." On the contrary, LIA's recent purchase of the Canadian Verenex oil company -- after much controversy over the manner in which it was purchased and share price -- was considered by Layas a "good deal." LIA plans to operate Verenex jointly with the Libyan Investment and Development Corporation (LIDCO).

Libya's reported $32 billion in liquid wealth doesn't account for the untapped energy capacity waiting for the nation to upgrade its aging technology. And Libya's ties to major multi-national companies don't stop at U.S. banks, Fortune's Cyrus Sanati reports:

"In 2007, BP inked a multiyear production contract with Libya worth at least $900 million. It will explore for oil and gas both onshore and offshore in an area larger than Kuwait. Total spending by BP (BP) in Libya could reach as much as $20 billion over the next two decades.

In 2008, ExxonMobil reentered the country, agreeing to invest $97 million to explore for oil and gas off the Libyan coast. It also paid a $72 million "signature bonus" to the state and agreed to pay $25 million to fund scholarship programs for Libyan citizens. The company is also expected to spend much more money in the country over the next decade."

These deals, Sanati notes, could be come "worthless" if Gahadfi leaves the country.

Comments

[Brant Kelsey]

03:10 PM on 02/25/2011

Sorry for the repost: It seems the original never showed up when posted 14 hours ago, then reposted and both showed up............HuH?.................apologies

[Brant Kelsey]

03:08 PM on 02/25/2011

“Another comment that piqued my interest, and trust there is much good material to be found here, it's totally the most spastic think tank ever devised, yet great fun at it's worst and extremely cogent at it's best. Back to the point. So Ironic that Osama Bin Laden became the Lee Harvey Oswald and the Subsequent Camel upon whose back we Rode the Bush Train into Iraq: To clear up Daddy's Debt to the Saudi's Ostensibly­: As did they, the Saudi's, not float the nearly indigent Bush Family for Nearly 20 years? I mean they did amass a small bit of Wealth during World War Two: Then that was cut short when Grand Daddy Bush, Prescott, and another American Hero, John Foster Dulles, had their New York bank shut down by the Feds, under the auspices of the Trading with the Enemies Act, which ended their financial ties with Hitler. However, Skull and Bones alumni, Bush 1, made his bones with the Oligarchs, and rose to the Rank of Capo, by fronting a CIA operated enterprise called Zappata Oil: Read Fair Play for Cuba, Read Hit Squad to kill Kennedy, read Grassy Knoll, read Head Shot from the Gutter, Read Hunt, Read Nixon White House, Read Head of the CIA, Read Warren Commission­, Read Lee Harvey Oswald, read I am a Patsy read Osama Bin Laden, read another False Flag......­........re­ad incomplete mission Iraqi Freedom, Read Saudi's still aren't safe, Read Spider Hole”

[Brant Kelsey]

03:04 PM on 02/25/2011

“OK. So BP has invested 20 billion in Libya....W­hat an incredible and remarkable Irony. Is it a Dream or a Premonitio­n? The Libyan Leader's imported Mercenarie­s on the thresh-hol­d of a scheme to rid the Protesters­/Revolutio­naries....­........Wh­en BOOM the Well Blows. Spouting Thick viscous Sweet Crude relentless­ly for 90 days as BP struggles to divert the flow: The desert is awash in Oil and African Mercenarie­s are photograph­ed, those that survive, tended to by UN workers in HAZMAT gear, using highly toxic substances in attempts to free their oil laden and useless appendages­. Meanwhile Helicopter­s hover overhead broadcasti­ng to the world, photo's of lifeless bodies caked in the strangleho­ld of the commoditie­s that once brought wealth, and now only death, like so many Seabirds, trapped and expired in a honeyed Sea of Oil.......­.....BP...­...The End Game”

[Brant Kelsey]

01:03 AM on 02/25/2011

OK. So BP has invested 20 billion in Libya....What an incredible and remarkable Irony. Is it a Dream or a Premonition? The Libyan Leader's imported Mercenaries on the thresh-hold of a scheme to rid the Protesters/Revolutionaries............When BOOM the Well Blows. Spouting Thick viscous Sweet Crude relentlessly for 90 days as BP struggles to divert the flow: The desert is awash in Oil and African Mercenaries are photographed, those that survive, tended to by UN workers in HAZMAT gear, using highly toxic substances in attempts to free their oil laden and useless appendages. Meanwhile Helicopters hover overhead broadcasting to the world, photo's of lifeless bodies caked in the stranglehold of the commodities that once brought wealth, and now only death, like so many Seabirds, trapped and expired in a honeyed Sea of Oil............BP......The End Game

[ramsha]

12:40 AM on 02/25/2011

Kaddafi new that anything from the US is bad news.

[Lozange]

06:23 AM on 02/24/2011

He joins Prince Charles who also blew Maddoff off by way of Philippe Junot, Princess Caroline's ex. Of course, now we in Canada have the infamy of doing business with Qaddafi. I'm ready to put money down it was brokered by our corrupt former PM Chretien who sits on some nebulous oil company's board in Kazakhstan somewhere.

[praxitas]

07:24 AM on 02/24/2011

in fairness to canada (not chretien), every western country is either in or looking to get in to libya. i do have a question though. what is up with this hard right turn in canada under harper? is he the driver, or is something else changing in the country? i lived there till age 7yrs in the early 70s, have fond memories and have maintained these, but the news of recent leaves me somewhat concerned.

[Lozange]

01:30 PM on 02/24/2011

I'd like to offer wisdom on that, but am at a loss. As per (Conservative) Harper, he came in after the Liberals had collapsed under scandals-the sponsorship scandal and Paul Martin's offshore companies registered in tax havens, etc- and is a counterweight I believe to the vocal Qc separatists. He's from the Prairies who've had major growth since the 70s. As a Poli Sci major from McGill, I've nevertheless stopped following domestic politics. I grew up during Trudeaumania, however when you realize Trudeau cranked up hatred against Qcers by making Canadians swallow the language pill when Qcers were using language only to illustrate our basic difference in wanting to leave Canada, combined with the travesty he made of repatriating a Constitution that doesn't exist to this day, there's no such thing as legitimate Canadian politics. It still behaves as a colonial outpost that nobody checks in on, and the national pastime is clogging the judicial system thanks to yet another Trudeau legacy, his Bill of rights and multiculturalism. We waste more time and money on compensating terrorists than an actual agenda for the country. Sorry to be longwinded.

[Behind the Tweed Curtain]

11:20 PM on 02/24/2011

It leaves me very concerned.

There were poll results published this week that show only 26% of Canadians would be pleased if Harper were to get a majority government. This is his second minority, and it's doubtful he will get a majority if he calls an election soon. One problem is that the Liberals were in power too long and got caught in a lot of scandals, the guy who was brilliant at Finance turned out to be not so great as a PM, and the Liberal leaders since him have been weak. This means they can't raise the money they need to run a great campaign. We nearly got a Lib/NDP coalition government a while back, but the Conservative mouthpiece lied to voters and told them it would be unconstitutional, and someone convinced the GG to let him have his way.

I just thank the PTB that he's only got a minority. Who knows how far right he would yank us - he personally supports the death penalty and doesn't support universal access to abortion.

[Skeetshooter]

03:44 AM on 02/24/2011

Very very wise for a supposed lunatic.

[Peter Combs]

12:18 AM on 02/24/2011

so...Kadhafi is smarter than the SEC...

Any more questions on how the US got into its current mess?

[Bike Commuter]

12:14 AM on 02/24/2011

So Gadhafi is smarter than Kevin Bacon?

[maslin]

12:16 AM on 02/24/2011

Seven Degrees of Bernie Madoff?

[Frank David Nall]

12:59 AM on 02/24/2011

A madoff too far.

[rotorhead1871]

11:27 PM on 02/23/2011

seize all kadaffy assets, pay off the china bonds with the proceeds, case closed,,,,,,,

[praxitas]

07:25 AM on 02/24/2011

basically steal, huh?

[Peter Combs]

11:10 AM on 02/24/2011

how about siezing them and giving them back to the Libyan people after they execute this guy...or leaves after accepting Chavez's invitation to move to Venezuela.

[looneydoone]

11:57 AM on 02/24/2011

Peter
Venezuela has said NO to any request for sanctuary for Gadafi.....not going to happen
That rumor was started by Libyan Ambassador stationed in Pekin (Beijing) Husein Sadeq al Misurati. He's been discredited after Al Yazira and Al Arabiya ran the story with the caveat, this information was unconfirmed at time of broadcast. (eurpoapres.es)

[blessedfrog]

09:27 PM on 02/23/2011

So Kaddafi has his money in western banks.

[barbra1971]

10:50 PM on 02/23/2011

Nobody says they are going to freeze his assets so far, at least I didn't see anything in media yet.

[Frank David Nall]

01:05 AM on 02/24/2011

We only pretend to like freedom. In essence it is bad for business. All those people running around demanding a decent wage and stealing money out of the CEO's pocket. When they can ship it overseas for slave wages in the name of globalization and pocket all those salaries and pensions themselves. It is never enough money for these people. The politicians and their money men don't think of the average citizen as anything more then a hindrance to their bottom line.

[alpi57]

09:21 PM on 02/23/2011

Never mind Madoff. That is yesterday's news. The most alarming sentence in this article was the last one:

"These deals, Sanati notes, could be come "worthless" if Gahadfi leaves the country."

That is why it is a dangerous situation for the people of Libya when the oil cartels will do anything to keep their investment sound and safe even if it means to keep Gadaffi in power, not to mention all the dirt he has on them and the western governments and could easily implicate the lot of them. Unless he is terminated of course.

[thebanana]

09:20 PM on 02/23/2011

You can't con a con.

[barbra1971]

10:50 PM on 02/23/2011

You are right, they are not stu-pid

[conservicide]

09:01 PM on 02/23/2011

Journalists call him crazy, yet they won't point that out about Walker, Koch, and Gingrich even though they are much crazier.

Journalism is dead, tis only propaganda now.

[EveAngel]

08:58 PM on 02/23/2011

Even despotic leaders, it turns out, can make sound investment decisions. sure, "despotic" leaders who make sound judgments are the ones who don't let the USA own them and therefore because of these sound decisions, the USA money masters hate them and send in their jackals to destroy them.

[Inkosi]

01:32 PM on 02/24/2011

"Confessions of an Economic Hit Man" - excellent book.