‘Heavy drinking and girls’ on Libyan investors’ Goldman-funded trips

Goldman Sachs took employees at Libya’s sovereign wealth fund on “lavish” excursions to Morocco at which there was “heavy drinking and girls involved”, a lawyer who worked at the fund has claimed in court documents.

Catherine McDougall, formerly of City law firm Allen & Overy, said she had been “shocked” by the closeness between those at the Wall Street bank and employees at the Libyan Investment Authority (LIA) during the Colonel Gaddafi era, when the LIA lost around $1bn on a derivatives trade arranged by Goldman.

The LIA, which is suing Goldman in London, claims the bank cosied up to its employees and hoodwinked it into making $1.2bn-worth of trades it did not understand, and is seeking damages.

Goldman, meanwhile, argues that it had an arms-length relationship with the LIA officials, who understood completely what they were buying into.

In witness statements provided by the LIA on Monday, at the start of a court hearing to manage the case, Ms McDougall and others claimed the relationship was anything but normal.

Read on.

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