Court jails and dismisses head of Libya Investment Authority

A criminal court in Tripoli has sentenced the chairman of the Libyan Investment Authority (LIA), Ali Mahmoud Hassan, to one year in prison and ordered his removal from office in a case linked to abuse of power and breaches of applicable laws.

The ruling was issued by the Criminal Chamber of the South Tripoli Court of First Instance on 30 March 2026. According to court documents, the case stems from Mahmoud’s failure to implement a previous judicial ruling in favour of Dr Mohsen Ali Derregia.

The court found that Mahmoud’s refusal to enforce the ruling constituted a violation of the law and caused harm to the public interest and to the interests of others.

In its reasoning, the court said the evidence presented, including official documents and legal submissions, established the offence. It also noted that the administrative decision at the centre of the dispute had previously been challenged before the administrative judiciary, which ruled to annul it.

The court further ordered Mahmoud to pay legal costs, describing his conduct as a breach of the duties of public office and an unlawful use of authority in violation of existing legislation.

Commenting on the ruling, political analyst Sami Radwan questioned whether Prime Minister Abdul Hamid Dbeibeh, in his capacity as head of the LIA’s board of trustees, would move to enforce the earlier court decision that Mahmoud had failed to implement. He said such a step would demonstrate respect for the judiciary and reinforce the principle of the rule of law.

The verdict comes as political and economic observers await the government’s response, given the strategic importance of the LIA in managing Libya’s sovereign assets.

The case also follows a long-running legal dispute over the leadership of the authority. In January 2023, Libya’s Supreme Court rejected a request by Mahmoud to suspend a ruling by the administrative courts of appeal in Tripoli ordering the reinstatement of Dr Derregia as chairman and chief executive of the LIA.

A source cited at the time said Mahmoud had exhausted all legal avenues and had been advised that the ruling was final and must be implemented. Previous reports also suggested that Mahmoud’s relationship with Dbeibeh had been marked by disagreements.

Dr Derregia was appointed to lead the LIA in April 2012, taking charge of a sovereign wealth fund then valued at more than $67 billion. During his brief tenure, he commissioned an asset survey and valuation project by Deloitte, as well as a strategic review by Oliver Wyman, as part of efforts to assess the fund’s holdings and strengthen its institutional governance.

Established in 2006, the Libyan Investment Authority manages Libya’s surplus oil revenues and is regarded as one of Africa’s largest sovereign wealth funds. Parts of its assets have been subject to an international freeze since 2011.

No official statement has yet been issued by the relevant authorities on how the latest ruling will be handled.