The internationally recognised Tobruk government in Libya and the self-declared government in Tripoli are fighting in the Maltese courts over ownership of LPTIC, a state-run telecoms company with millions of euro worth of assets.

The Tripoli administration is claiming that LPTIC’s chairman Feisal Gergab abandoned his post last summer shortly after Islamist seized control of the Libyan capital.

The Tripoli administration appointed a steering committee to manage LPTIC on 26 October 2014 and terminated Mr Gergab’s chairmanship, along with the rest of the directors.

The Attorney General’s office in Tripoli has requested an investigation into Mr Gergab, as well as Osama Siala, the Minister for Communications for the Tobruk-based government.

In February, Mr Gergab set up a subsidiary company in Malta called LPTIC Services, which has a stake worth millions in Italian data services provider Retelit though a holding company in Luxembourg called Bousval.

In its court application, the Tripoli administration argued that Mr Gergab formed LPTIC Services “under false pretences”, and he continued to make “illegal use” of LPTIC’s letterheads.  

During the last court sitting, Lawyer Tonio Azzopardi – who filed a request asking for LPTIC’s assets to be frozen on behalf of the Tripoli administration – argued that Malta will be putting itself in an embarrassing situation if the courts do not agree to temporarily freeze LPTIC’s assets until the ownership battle has been resolved.

Countering this, Professor Ian Refalo – who represents Mr Gergab said the documents presented in court by the Tripoli administration claiming ownership of LPTIC are not valid, as the Maltese government does not recognise the Tripoli administration.

Foreign Ministry representative Peter Paul Mallia was called to testify in court in order to confirm that the Maltese government does not recognise the Tripoli administration.

Dr Azzopardi argued that the Maltese government’s position in this regard should not affect the court’s decision.

The case is being heard by Mr Justice Wenzu Mintoff, who is also hearing a request to have the millions owned by the former Libyan dictator’s son Mutassim Gaddaf currently frozen in a Bank of Valletta returned to Libya.

Yet another legal battle is playing out over ownership of the Libya Africa Investment Portfolio (LAP), with the Tripoli government again demanding that the Maltese courts recognise the directors it has appointed to the company.

LAP is subsidiary of the state-owned Libya Investment Authority, which has holdings in various Maltese companies.