Seeking Goodwill
“It is common for firms to seek to cultivate and generate goodwill with potential counterparties in the hope (rather than expectation) that a closer relationship will lead to more potential business opportunities,” Vella, who previously worked at JPMorgan Chase & Co., said in the statement.
The LIA’s lawyers have alleged that Goldman bankers bought gifts, arranged trips abroad and hired prostitutes for Libyans with connections to the fund. The bank denies any wrongdoing.
The power vacuum left by Qaddafi’s 2011 death plunged Libya into violent conflict and destroyed its economy. A unity government has gained support from the main factions and restarted oil exports, however control of the Libyan Investment Authority remains disputed.
The case is Libyan Investment Authority v. Goldman Sachs International, HC-2014-000197, High Court of Justice, Chancery Division.