Libya nears $10million compensation deal with Lockerbie families
An agreement may have been reached between Libya and lawyers working for families affected by the Lockerbie bombing which could see victims relatives paid $10million.
Following negotiations in the UK, it appears that Libya is willing to establish a $2.7billion fund from which to pay staggered compensation.
Although the deal means Libya is expected to immediately start shifting funds into an account with the Bank of International Settlements, these funds will not be available to claimants until other significant actions are taken.
The first requirement is that the United Nations formally removes sanctions on Lybia. The sanctions have been suspended but the deal may require the USA to write to the United Nations to suggest that Libya has met the requirements for them being permanently removed.
That first act will see funds worth $4million per family made available, and the same amount will be made available again when the USA removes its sanctions on the North African state.
$2million more will be released as the last of the funds involved in the deal if the USA removes Libya from their list of states that sponsor terrorism.
UN sanctions could be removed within a week, which would help to ensure some results come from the deal as previous agreements have been close to completion only to collapse and frustrate all sides.
However, the other changes are less simple. It will take some time for the USA to remove its sanctions regime, which sees it take punitive action against foreign firms that invest in the country. It will also be difficult for the USA to conclude that Libya is no longer a terrorist threat.
Representatives of the families welcome the move towards a form of justice, and particularly the possibilities opened by a part of the agreement that states Libya must write to the United Nations to accept its responsibility for the bombing.
Following the conviction at a Scottish court in Holland of Abdelbaset ali Mohmed al-Megrahi for the Lockerbie bombing, the families fear that any such letter would place the blame on individuals rather than accept the Libyan Government was to blame. This would make a difference to any right to sue afforded to the families.
Menzies Campbell MP, Liberal Democrat Shadow Foreign Secretary, commented on the news saying: ‘Financial compensation, even at this level, can never restore what these families have so tragically lost. One can only hope that it may help them to draw some kind of line under what has been a long-running ordeal.’
