Libya: Gaddafi's billions to be seized by Britain

Ministers have identified billions of pounds that Col Muammar Gaddafi and the Libyan regime have deposited in London, The Daily Telegraph can disclose.

Col Gaddafi was yesterday accused of ordering the deaths of thousands
of protesters, but he refused to surrender as Libya descended into civil
war Photo: EPA

Telegraph, By Robert Winnett, and James Kirkup in Muscat 10:52PM GMT 24 Feb 2011

The funds are expected to be seized within days. The Treasury is understood to have set up a unit to trace Col Gaddafi's assets in Britain, which are thought to include billions of dollars in bank accounts, commercial property and a £10 million mansion in London.

In total, the Libyan regime is said to have around £20 billion in liquid assets, mostly in London. These are expected to be frozen as part of an international effort to force the dictator from power. A Whitehall source said: "The first priority is to get British nationals out of Libya. But then we are ready to move in on Gaddafi's assets, the work is under way. This is definitely on the radar at the highest levels."

Col Gaddafi was yesterday accused of ordering the deaths of thousands of protesters, but he refused to surrender as Libya descended into civil war.

Meanwhile, the British Government struggled to assert its authority following a chaotic few days.

It faced further embarrassment, when Nick Clegg said he "forgot" he was supposed to be running the country in David Cameron's absence.

The Deputy Prime Minister was also forced to cut short a holiday at his family villa in the Swiss ski resort of Davos to return to Britain for security meetings today. Mr Cameron was also due to return to Britain from the Gulf after being forced to apologise for the chaotic evacuation effort.

Hundreds of Britons were finally able to leave Libya in military planes and on a Royal Navy warship after several days stranded in the country. More than 350 British nationals had been rescued by last night.

Those returning to this country spoke of Libya "descending into hell". United Nations experts estimated that more than 3,000 people may have died, while militias were reported to have executed wounded protesters.

Special forces soldiers were understood to be assisting the evacuation of dozens more British oil workers. They were thought to be preparing to travel in convoys across land to Tunisia or Egypt, but they will have to pass through dozens of checkpoints set up by rebel forces or troops loyal to Col Gaddafi.

Officials are confident that all Britons who wish to leave Libya should be able to do so by tomorrow.

Mr Cameron said he was “extremely sorry” over delays in the evacuation as the Government ordered a review. In a television interview from Muscat, Oman, he admitted that the Government must improve its performance.

The Daily Telegraph has learnt that Mr Cameron told William Hague, the Foreign Secretary, and Liam Fox, the Defence Secretary, that their handling of the crisis was not good enough.

During a conference call from Qatar on Wednesday, he gave the ministers a detailed list of goals to improve the operation, and asked for updates in a second, late-night call. A “furious” Mr Hague is understood to have ordered in the officials responsible for the evacuation for a “serious dressing down”. Several officials are expected to be moved to other positions once the Libyan crisis is over.

Ed Miliband, the Labour leader, said ministers had “taken their eye off the ball” and lessons must be learnt.

International attention is now expected to turn to efforts to force Col Gaddafi from power. Hillary Clinton, the US Secretary of State, is expected to attend UN talks in Switzerland on sanctions and plans for a no-fly zone over Libya. Last night the Swiss announced they were freezing Col Gaddafi’s assets in the country.

A diplomatic cable passed to The Daily Telegraph by WikiLeaks earlier this month, disclosed the scale of the Libyan regime’s deposits in foreign bank accounts, primarily in London.

Mohamed Layas from the Libyan Investment Authority, which has offices in London, told the US ambassador last year: “We have $32 billion (£19.8 billion) in liquidity.”

There is also growing concern over the impact of the turmoil on oil prices, which yesterday hit their highest level since the crisis began. The price of a litre of fuel in British petrol stations has risen by 3p over the past few days.

The US last night dismissed rumours begun by oil traders that Col Gaddafi had been shot and killed. Earlier, the defiant Libyan leader gave a rambling address to state television via telephone. “Our youths have been drugged and they have been misled to wage war against our country,” he said.

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