Transformation program - Libyan Investment Authority

Bringing about real change through transformation towards good governance, transparency efficiency in our institutional performance

LIA is committed to bringing about real change in its continuous pursuit of excellence in its institutional performance. Our priority now is to move forward with the comprehensive transformation strategy, which aims to improve governance, transparency and accountability.

Launched in

January
2020

This strategic initiative was launched in January 2020, to enhance our efforts to preserve and develop the assets of the Libyan Investment Authority for the benefit of the Libyan people and future generations.
Our primary goal, which we are working on achieving, in cooperation with our international advisors, is to upgrade the capabilities of the Authority to enable it implement its investment activities in accordance with the best global practices followed by the leading international sovereign wealth funds.

Transformation Strategy

The strategy is composed of three key work tracks:

Transformation towards Governance Program
Organization and infrastructure
  • Adopting robust systems and processes across all levels of the authority.
  • Providing continuous training to raise the efficiency of the Libyan Investment Authority’s cadres.
Reporting
  • Provide greater control over all funds, portfolios and companies affiliated with the Libyan Investment Authority.
  • Improving compliance with the Santiago Principles ®️.
Governance of the Board of Directors
  • achieving the integration of the governance structure in line with the best practices of sovereign wealth funds.
  • Adopting a clear and consistent governance framework in all funds, portfolios and subsidiaries of the Libyan Investment Authority.
Control (oversight)
  • Adopting the best controls in the areas of audit, risk, compliance and reporting.
  • The strategic distribution of the invested assets to reflect the objectives, risks and returns.
Investments
  • Building strong local and foreign investment capacities to support future investment plans and programs.
  • Adopting the best investment policies to achieve the targeted returns.
Disputes
Highly efficient management of judicial disputes to ensure the protection of the Authority ‘s assets.
  • Focus on issues that affect the authority’s control over all of its assets.
  • Provide protection for the assets that are exposed to attempts of judicial attachment and execution by parties that obtained judgments and orders against the State of Libya.
  • Emphasizing that the Authority has a legal personality and independent financial and legal liability.
Financial statements and valuation
Prepare financial statements
  • Ensure compliance of accounting data and policies with international standards used in the preparation of financial reports.
Evaluation
  • Strengthening oversight based on the quality of reports and performance valuation of all assets, portfolios, funds and subsidiaries of the Libyan Investment Authority.

LIA is a member of the International Forum of Sovereign Wealth Funds, a global network of sovereign wealth funds dedicated to collective action and enhancing the impact of sovereign wealth funds through dialogue, research, and evaluation.

Our transformation program reflects our endeavor to improve our compliance with the Santiago Principles ®️, which promote governance, transparency, accountability, and prudent investment practices. We are committed to applying the highest standards of professionalism and disclosure, and we continue to take steps to enhance corporate transparency and openness.

Since launching the Authority’s transformation program, we have taken a series of measures to ensure that the LIA aligns with the best practices of sovereign funds.

We continue to work closely with international experts to implement positive reforms and best practices in compliance with the Santiago Principles.

Key initiatives implemented to date


Transformation Programme
Organization and infrastructure
  • Establishing a new organizational structure that supports the implementation of our strategy and is based on international best practices.
  • Continuous improvement of the roles and responsibilities of the authority to support our strategic priorities.
Reporting
  • Preparing comprehensive periodic investment reports for all assets, portfolios, funds and subsidiaries of the Libyan Investment Authority.
  • Produce quarterly reports on the progress of compliance with the Santiago Principles ®️.
Governance of the Board of Directors
  • Improving the internal governance standards of the Board of Directors and approving the instruments regulating its work thereof.
Control
Investments
  • Preparing a proposal for an investment policy statement that defines our investment philosophy in light of the commitment to the United Nations sanctions framework.
  • Preparing an investment model proposal to complete the above.
Financial statements and valuation
Completion of the valuation of LIA ‘s assets of
  • Conducting a valuation of all assets, portfolios, funds and companies affiliated with the Libyan Investment Authority for the years (2017, 2018, 2019).
Prepare financial statements
  • Appointing an independent international external auditor to audit the final accounts of the Libyan Investment Authority for the year ending on December 31, 2019.
Valuation
  • Preparing a plan to face the risks of the impact of the Coronavirus pandemic on our investment portfolio.
  • Organizing training programs for our employees with the aim of building the capacities and skills required to conduct the valuation.

In completion of the work done, and as part of the transformation phase, LIA will continue to seek to submit a request for minor amendments to the current applicable sanctions regime to make it smarter and allow part of the assets under freezing to be managed in a way that ensures that these assets are protected from exposure to market risks and erosion.

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© 2021 LIA,  ALL RIGHTS RESERVED.

© 2021 LIA,  ALL RIGHTS RESERVED.