Libya and the London School of Economics

Libya: LSE director resigns over university’s Gaddafi links
Sir Howard Davies, the director of the London School of Economics, has resigned over the university’s links to Col Gaddafi’s family.

Sir Howard Davies will remain as the head of LSE until a successor has been found Photo: JUSTIN SUTCLIFFE
By Barney Henderson 9:52PM GMT 03 Mar 2011
Sir Howard Davies said he recognised that LSE’s reputation had “suffered” over a £300,000 research grant from Col Gaddafi’s son, Saif al-Islam, meaning he must step down.

He said the decision to accept the grant had “backfired” and expressed regret that he had visited Libya to advise the regime about how it could modernise its financial institutions.
The LSE council has commissioned an independent inquiry into the university’s relationship with Libya and Gaddafi’s family.
Amid controversy over its Libyan links, the university announced on Wednesday it was cutting ties with the Gaddafi family and that it would donate up to £300,000 to struggling Libyan students. It is also investigating claims that Saif al-Islam plagiarised his LSE PhD thesis.
“I have concluded that it would be right for me to step down even though I know that this will cause difficulty for the institution I have come to love. The short point is that I am responsible for the school’s reputation, and that has suffered,” Sir Howard said in a statement.
“Also, I made a personal error of judgment in accepting the British Government’s invitation to be an economic envoy and the consequent Libyan invitation to advise their sovereign wealth fund.”
Sir Howard, a former head of the Financial Services Authority and deputy governor of the Bank of England, will remain as the head of LSE until a successor has been found.
Peter Sutherland, chairman of the court of governors at LSE, said: “Howard has been an outstanding director of the LSE these past eight years and his achievements here will endure long after the current controversy has died away.
“We accept his resignation with great regret and reluctance but understand that he has taken an honourable course in the best interests of the school.”