Report: Cash paid before Swiss businessman freed by Libya

Jun 17, 2010, 12:40 GMT

Zurich - Swiss officials deposited about 1.3 million dollars into a bank account held by Libya as a 'confidence-building' measure just before Libya freed a Swiss businessman who had been detained since 2008, media reported Thursday.

The money, deposited into a German account, was intended to cover damages should Swiss authorities not bring to justice the people who gave police photos of Hannibal Gaddafi - son of Libyan leader Moamer Gaddafi - according to a Geneva newspaper.

The disputed pictures shows the younger Gaddafi and his wife as they were arrested in 2008 on charges of abusing hotel staff in Geneva.

The Swiss Foreign Ministry described the payment as a necessary confidence-building measure if Goldi was to be freed.

Max Goldi and fellow businessman Rachid al-Hamdani were arrested in July 2008, days after the complaint was filed against the Gaddafis.

The two were prevented from leaving Libya and subsequently tried on visa violations. Both men were sentenced to 16 months in prison on charges of illegal business activity and visa infractions.

Al-Hamdani, who has joint Swiss and Tunisian nationality, was acquitted of both charges, and was allowed to leave Libya.

Goldi was fined 1,000 Libyan dinars (780 dollars) for conducting illegal business in the country and only returned to Switzerland on June 10.

Part of the agreement to secure Goldi's release obligated Swiss authorities to try to investigate how the pictures ended up with the newspaper.

Although the foreign ministry said the paper's procurement of the photographs was unlawful, Swiss press law could still protect the person who handed them over.