As per a leaked report some of the world’s best known financial institutions held billion dollars of Libyan state funds. According to Global witness among them main were Royal Bank of Scotland, HSBC, JP Morgan Chase, Societe General, Goldman Sachs, and Nomura. It was denied by the bank to say that whether they held the funds or still they are holding it.

Now the European Union and United Nation have frozen all the assets. As per a document of June 2010 $292.7m is held by HSBC bank in 10 cash accounts, and in a hedge fund similar amount is invested. And $43m is held by Goldman Sachs bank in three accounts.

Nearly in investment funds and structured products $4bn was held and alone Societe General holding $1bn. and $500 was held by Bank of New York and Japanese bank Nomura each. According to the document a larger proportion of Libyan assets that is in total $19 were held by Middle Eastern Banks and Libyan.

It is widely reported that the held funds are stake in Italy’s Uncredit bank, UK publishing group Pearson, industrial group Finmeccanica and Canadian oil exploration group Verenex.

As per the page nine of the leaked report commonwealth Bank bond holds $US 20.37million NAB bonds hold 10.12 million by last year June 30. The report prepared by the firm KPMG for the Libyan authority says a vast amount of Libyan state oil revenue was hold by many high profile Western financial institutions by last year June 30. This was just six month prior the country went for civil war.

The Chaiman Gooch, director of Campaigning group Global Witness said in this type of case it is absolutely meaningless that HSBC and Goldman Sachs can hide the confidentiality of customer.

He also said “These are state accounts, so the customer is effectively the Libyan people and these banks are withholding vital information from them.”

The LIA was established in the year 2006 and it holds assets of nearly $70bn. as per the Sovereign Wealth Fund Institution in the world it is the 13th largest sovereign wealth fund. On the transparency ranking of institute the fund built on the Libya’s oil wealth have a score of two out of 10.

Early this month the economic sanction against Libya is extended by EU in a motive to include both country’s central bank and LIA. The assets of Libyan leader Muammar Gaddafi and some of his family members had already been frozen.

Mr. Palmer said “This would cost nothing and would allow citizens to see that state revenues are not being stolen by corrupt leaders,”

The KPMG report shows that last year many poor investment had been made by Libyan fund including a gamble of $US1.25 billion in equity derivatives which had 98.5 percent loss and by the end of June left just $US19.8 million.