The story that seems to want to stay a small one

The Telegraph's report that "A secretive company run by the brother of Tony Blair’s main adviser is profiting from being a key player in the development of Libya’s lucrative tourist industry" seems interesting and worthy of comment but I cannot see any coverage in the blogosphere, why? The Telegraph report much that is of interest in this article and in fact you really need to read the whole piece, so I have reproduced it here with the most interesting extracts highlighted:

"Magna Holdings has been charged with building hotels and office blocks in Tripoli and is poised to win valuable contracts developing tourism along Libya’s unspoilt 300-mile Mediterranean coastline.

It is also constructing “Gaddafi Tower” in Tripoli as one of a number of contracts worth £175 million.

Magna Holdings, which is registered in Hamilton, Bermuda, a Caribbean tax haven, is chaired by Lord Powell, the brother of Jonathan Powell, Mr Blair’s chief of staff when he was at No10. Mr Powell has continued to work alongside the former prime minister over the past two years.

Lord Powell, a former aide to Baroness Thatcher, also advised Mr Blair and was the “special envoy” to Brunei. He has played host to many Labour figures at the Italian villa he shares with his wife, Carla, including Mr Blair and his wife Cherie and Lord Mandelson.

One of Magna Holding’s major backers is Wafic Said, a British-based billionaire linked to the BAE-Saudi bribery scandal. Mr Blair intervened to halt the Serious Fraud Office inquiry into the affair.

One of Mr Blair’s final acts as prime minister was to sign a controversial co-operation agreement with Col Gaddafi, the Libyan leader, that opened trade links for British firms.

It was previously thought that oil companies would be the main beneficiaries. However, Magna Holdings is one of the main players in the development of Libya’s tourism industry.

The country has an unspoilt coastline, some of the best Roman ruins in the world and a hot, dry climate. Although tourism is in its infancy, estimates suggest that it could soon be a multi-­billion-pound industry.

Magna Holdings, despite having virtually no public profile and no background in the tourism industry, is expected to become one of its major players.

It has already won contracts for three projects in Tripoli. It has redeveloped the five-star Al Wadden hotel, which is run by Intercontinental, and is constructing a second £40 million hotel for the group in the capital.

The third and most controversial project is the £121 million Algathafi (Gaddafi) Tower, a 50-storey development consisting of offices, restaurants and shops. It is jointly owned by Magna Holdings and the Watasemo Organisation for Charity Work, which is run by Ayesha Gaddafi, the dictator’s daughter.

Magna is also understood to be bidding for contracts to develop Libya’s coast.

The company does not publish public accounts and many of its shareholders are front companies or trusts that are registered in other tax havens.

However, The Daily Telegraph has established that the firm has three main shareholders — Mr Said; Och Ziff, a hedge fund based in New York; and a Middle-Eastern property developer.

Sir Anthony Joliffe, the former Lord Mayor of London, is a director of Magna Holdings and the chief executive is Nabil Naaman, who lives in a millionaire’s enclave in Cobham, Surrey. His wife has been involved in fund-raising for the Conservative Party.

The company was formed in June 2004 — three months after Mr Blair normalised relations between the two countries. It agreed its first deal in Libya shortly after.

Several other British firms hoping to profit from the development of Libya’s tourist industry have so far been frustrated in their attempts to win major contracts.

A spokesman for Magna Holdings, which has no links to the Yorkshire-based company of the same name, denied that Mr Blair or Mr Powell had been involved in helping to secure contracts from the firm. “There is no involvement at all,” he said.

A spokesman for Tony Blair said neither the former prime minister nor Mr Powell had been involved with discussions on Magna Holdings.

Mr Blair is understood to have visited Libya several times since leaving Downing Street. His aides said this was in connection with his charitable and humanitarian work.

The Cabinet Office refused to answer requests over whether Magna Holdings or its representatives attended meetings in Downing Street between 2004 and 2007."