Plot by Gaddafi family to grab £900m in new Libyan banknotes from UK



A secret plot by the Gaddafi family to grab nearly £900million in new Libyan banknotes was thwarted after George Osborne intervened.

It came as Britain last night froze the assets of the tyrant and his family and told him: ‘It’s time to go.’

With Gaddafi’s power base under assault, his allies launched an audacious attempt to seize the notes from a warehouse in Britain, where they are printed.

With Gaddafi’s power base under assault, his allies launched an audacious attempt to seize the notes from a warehouse in Britain, where they are printed. The plot was thwarted after George Osborne intervened



But Treasury officials engaged in a game of subterfuge and delaying tactics reminiscent of a Hollywood thriller as they set about stalling the henchmen.



While the Chancellor’s people worked on drawing up a legally watertight ‘stop order’, his officials created a series of logistical obstacles to prevent the currency leaving the country. A source said: ‘We strung out process to give time to get the legal powers. We said it would take three to four days to move that amount, and an appropriate plane.

‘When they offered to provide their own plane they were directed to Marsden in Kent – whereas the notes are in the North East, meaning extra travelling time would be required and several extra 4x4s.’

By the time the hurdles had been cleared, Mr Osborne had a document in place to prevent the money leaving the warehouse.



Libyan troops loyal to leader Muammar Gaddafi guard a checkpoint between the capital and the city of Zawiyah 30 miles to the west

The plot was highly sensitive because the company which made the bank notes had to be seen to be fulfilling its legal obligations.

The dictator and his henchmen were last night stripped of diplomatic immunity, meaning they could be arrested for war crimes if they set foot in the UK.

And Mr Osborne got the approval of the Privy Council – with the Queen present – to stop the regime getting access to billions of pounds in assets in Britain at a meeting at Windsor Castle yesterday.

The Government also said it would no longer approve export licences for ‘military or paramilitary equipment to Libya’, except if it is for UN peacekeeping or humanitarian purposes.

It followed an outcry when it emerged that Gaddafi used weapons supplied by British firms against his own people.

Earlier Foreign Secretary William Hague joined U.S. President Barack Obama in calling for Gaddafi to stand down.

‘Of course it is time for Colonel Gaddafi to go. That is the best hope for Libya,’ Mr Hague said – the first time a minister has publicly stated what has privately been British policy for a week.

The White House said in a statement: ‘When a leader’s only means of staying in power is to use mass violence against his own people, he has lost the legitimacy to rule and needs to do what is right for his country by leaving now.’

The Obama administration said it stood ready to offer ‘any type of assistance’ to Libyans.

Those covered by the asset freeze include Gaddafi, his daughter Aisha and four sons – Saif, Hannibal, Mutassim and Khamis.

The UN Security Council is calling for further asset seizures and travel bans. It has tasked the International Criminal Court with investigating the atrocities.