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By Michael Shields

VIENNA, April 30 (Reuters) – Libya’s former prime minister

and oil minister Shokri Ghanem, a prominent defector from

Muammar Gaddafi’s government, drowned in the River Danube,

Vienna police said on Monday and a Libyan security source

suggested he could have been murdered.

Ghanem’s fully-clothed body was found in the Danube in

Vienna on Sunday, a few hundred meters from his home. According

to a preliminary autopsy there were no indications of foul play

or suicide, spokesman Roman Hahslinger told reporters.

A Libyan security source said they were investigating the

death and believed he could have been pushed into the Danube by

former Gaddafi agents.

His body was found at 8:40 a.m. (0640 GMT) on Sunday by a

passerby near the entertainment area known as Copa Cagrana,

where a footpath winds along the riverbank. He had spent

Saturday evening watching television with his daughter.

The daughter noticed at around 10 a.m. that her father was

no longer at home, police said.

The former Gaddafi confidant, who was also close to

Gaddafi’s son Saif al-Islam, was privy to potentially damaging

information including on oil deals with Western governments.

Ghanem, 69, had been chairman of Libya’s state-owned

National Oil Corporation (NOC) before defecting last year

several months after opponents of Gaddafi had risen up against

the Libyan leader and begun a rebellion.

Saad Djebbar, a UK-based Algerian lawyer who knew Ghanem and

advised the Libyan government during the Lockerbie affair, told

Reuters Ghanem was not the sort of man to kill himself.

“It’s a very mysterious death,” he said.

“He was worried about the future course of politics in Libya

but he would not be the kind of man for suicide. He was very

well introduced internationally and had lots of connections.”.

“Shokri Ghanem definitely is one of the guys who knew a lot

and was one of the most powerful guys in the old regime,” said

David Bachmann, an Austrian Chamber of Commerce official based

in Tripoli who knew Ghanem well.

As NOC chairman since 2006, Ghanem helped steer Libya’s oil

policy and held the high-profile job of representing Libya at

OPEC meetings, often visiting Vienna for meetings in that role.

After making a final break with the Gaddafi administration

last year, Ghanem first appeared in Rome, saying he had defected

because of the “unbearable violence” being used by government

forces to try to put down the rebellion.

He had been working of late as an energy consultant in

Vienna, where two daughters and their families also live.

Hahsinger said police had been unaware of any “concrete”

threats against Ghanem.

Ghanem was still closely associated with Gaddafi’s rule by

Libya’s new leaders and had ruled out returning home.

“Definitely there were people there who did not like him or

who thought that he had stolen billions and now he is in safety

in Vienna, having a nice life,” Bachmann said, adding it was

common knowledge that Ghanem was often in Vienna.

Bachmann said he would not have been surprised to read that

former Libyan rebels had taken revenge on Ghanem, but said

Gaddafi allies could also have held a grudge.

“The problem was he was sitting between the chairs. For the

old guys (in the Gaddafi regime) he was a defector, a kind of a

rat. For the rebels he was also a rat because he did not defect

early enough,” Bachmann said.

A woman who answered the phone at his home in a high-rise

apartment block and identified herself as his daughter said:

“Today we are still in a state of shock…right now I’m sorry I

can’t talk more.”

Bachmann said Ghanem had many friends in Austria and Italy

and spent time shuttling between Vienna and Rome while trying to

lead a quiet life.

“He was 69 and was not a stupid guy. You figure out you have

no political future and at a certain moment you say ‘OK, let’s

finish this Libya story and try to enjoy my family and my

grandkids and that’s it’.”

Ghanem, who studied at the Fletcher School of Law and

Diplomacy in Boston in the early 1970s, stood out among his

fellow graduate students for his sharp intellect and infectious

humour.

While American students there worried about soaring petrol

prices during the OPEC oil embargo of 1973, he eagerly explained

and defended the Arab view of the emerging new world energy

order.

At an alumni reunion in 2004, he impressed his former

classmates with his insider’s account of the economic reforms he

planned to introduce with the help of Gaddafi’s son Saif

al-Islam, whom he had mentored at OPEC headquarters at a time

when the now-captured son wanted to make a name for himself

outside of Libya.

Ghanem said Saif al-Islam had persuaded his father to reform

but he wasn’t sure how far reforms could go. He said he only

wanted to stay in office as long as he could modernise the

economy. If Gaddafi didn’t keep him, Ghanem said, he would

happily retire to write one or two books on economics he had in

mind.

(Reporting by Michael Shields, Tom Heneghan, William Maclean

and Marie-Louise Gumuchian; Editing by Samia Nakhoul)