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Author: Amira Cherni

Exclusive: Despite Audit Bureau Reports Proving Involvement in Supplying Contaminated Gasoline, the National Oil Corporation Accepts Settlement with the Accused Company, with Approval from Shakshak

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On December 22, 2024, ur source obtained reports from the Audit Bureau, which were forwarded to the Public Prosecution, regarding the contaminated gasoline supply by Litasco company to Libya, which led to numerous vehicle malfunctions.

The National Oil Corporation had reached a settlement with the aforementioned company, with approval granted by the head of the Audit Bureau, Khaled Shakshak, under the following conditions:

  • Approval of the settlement by the Legal Affairs Department, including a legal opinion from the law office on the corporation’s position in this case.
  • Confirmation from the General Department of International Marketing regarding the financial value owed to the company for late penalties on the shipments delivered.
  • The settlement record affirms that the Libyan state retains the right to resort to legal action if evidence emerges proving the company’s involvement in supplying fuel shipments that do not meet agreed-upon specifications.
  • Payment to be made from the fuel supply account at the Libyan Foreign Bank.

The National Oil Corporation stated on its Facebook page that this settlement helped avoid significant financial losses, which would have been legally binding and could have endangered some of its foreign assets to seizure. The corporation also emphasized that it still retains the right to file a lawsuit against the company if investigations by the Audit Bureau reveal that the company supplied fuel shipments that did not meet the agreed specifications.

This ongoing case has sparked widespread debate, with many questioning why the company is being compensated instead of compensating the affected citizens.

Amin Salih Writes: The Communications Authority Outside the Scope of Communications

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The tech blogger Amin Salih wrote an article in which he entitled: “The Communications Authority is Outside the Scope of Communications.”

He stated: “When writing an opinion piece on information technology, you try to gather many ideas, mistakes, viewpoints, and issues, blending them with local and global experiences and practices.

During my visit last week to the Internet Governance Forum in Riyadh, I heard and participated in many discussions. One sentence by a member of a Brazilian organization named CGI, which focuses on multi-stakeholder models in information technology, caught my attention. He said, “The government and ministries do not lead development in information and communications technology; rather, communities drive that. The role of regulatory ministries is to develop and implement policies that grow the sector and coordinate with other sectors.”

While speaking with him directly, my thoughts turned to the case of the “General Authority for Communications and Information Technology.” With a staff exceeding 2,000 employees, boasting millions in budgets covering salaries, bonuses, and development efforts, the results, based on what I’ve observed, are close to zero. There are branches, travels, committees, and media productions, but the outcomes are very limited.

Some employees believe the authority should trade, compete, and profit, leading to envy and animosity toward private and public companies.

Challenges and Problems Facing the Authority

  • Weak coordination between various departments within the authority.
  • Absence of a clear strategic vision for developing the sector.
  • Over-reliance on bureaucracy that delays decision-making.
  • The impact of political disputes and armed conflicts on the authority’s performance, leading to power struggles within and outside the authority among private and public sectors, as well as individuals, resulting in no progress.
  • Limited investment in training and development for employees.
  • Dependence on outdated technologies, failing to keep up with modern technological advancements.
  • Weak digital transformation in providing services to citizens.
  • Employment based on personal relationships, rather than competence, and the influence of tribal and social factors in decision-making, even in simple administrative matters like firing or leave requests, including licenses and fees. This has led to the authority becoming a place for resolving unemployment issues, which results in disguised unemployment.
  • Many employees are preoccupied with creating “trends” and projects based on desires rather than needs, without considering causes, effects, or conducting research.
  • The absence of scientific and field research coordination, with no tangible results.
  • Lack of transparency in addressing citizens’ complaints or inquiries.
  • Failure to encourage private sector investment in telecommunications, directing work exclusively to government sectors, a practice the Libyan Audit Bureau has indicated may be tied to corruption.
  • Appointing unqualified officials in leadership roles due to quota systems.
  • Lack of cooperation with the local or international private sector, civil society, or even ministries within the country.
  • No accountability for administrative failures or financial waste.
  • Slow response during critical moments requiring swift action due to job congestion and a lack of accountability.

The Need for Comprehensive Reform

There are many mistakes that are hard for a single person to list from just one angle. What if a technical, oversight, and financial report about the authority were created? Would it be dismantled and rebuilt? I have made several attempts at reform on various levels, but unfortunately, I failed even with leadership supporting these ideas. The problem exists in middle management and even among employees. Here, I do not blame any party; each has its reasons. We have begun justifying corruption and decay and offering excuses. There are many questions, and we’ve reached a point where we can’t even find the questions to seek answers for.

My Vision for the Communications and Information Technology Authority Based on What I Know and Have Learned

  1. Reducing the Number of Employees
    The number of employees in the General Authority for Communications and Information Technology should be capped at 50, all of whom should be specialists and experienced, with a modern mindset, earning competitive salaries ranging from $1,500 to $3,000 per month.
  2. The Authority’s Framework
    The authority should focus on developing the best policies, regulations, and drafts of laws, coordinating with relevant parties.
  3. Advisory Council
    The authority should be supported by an advisory council, with no material compensation or personal or institutional benefits, consisting of:
    • Three universities, colleges, or specialized institutes (can be increased).
    • The National Authority for Information Security and Safety.
    • The General Authority for Information.
    • Three civil society organizations.
    • Three government-owned companies.
    • Several private sector companies (based on the topic of interest).
    • The Government Call Center.
      Each entity would nominate a representative, and conflicts of interest would be prevented. This council would serve an advisory and oversight role.
  4. Authority Independence
    The authority should avoid commercial competition, conflicts of interest, and favoritism. It should refrain from directly benefiting from markets but should encourage investment by reducing fees and taxes in targeted areas.
  5. Accuracy and Transparency
    The authority must operate with accuracy and transparency, publishing reports regularly, and serve as a model for providing services without personal interests or irresponsible behavior.

Reforming the Communications and Information Technology Authority requires a comprehensive vision and collective work aimed at overcoming accumulated mistakes and building a system that keeps pace with global technological developments and serves the interests of the country and its citizens. Achieving this goal starts by redefining the authority’s role, reducing its size to qualified competencies, and enhancing transparency and good governance. By moving away from bureaucracy and corruption, focusing on policy development and supporting innovation, the authority can become a model for management and sustainability. The road is not easy, but it is possible with sincere will and effective cooperation among all parties. This will lay the foundation for a strong telecommunications sector that contributes to strengthening the digital economy and supports sustainable development.”

Libya Not Exempt from Tightening Financial Procedures and International Review Requests: Lawsuits Filed Against Several US Banks for Payment Fraud

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Financial Times reported today that the Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Zelle payment network operator and three major US banks.

The British newspaper confirmed that these banks dominate financial transactions and failed to adequately investigate fraud complaints and compensate victims.

Millions of Dollars in Losses:

According to the report, the three banks involved are JPMorgan Chase, Bank of America, and Wells Fargo, with customers losing over $870 million since Zelle’s launch in 2017.

The article highlighted that Zelle, a peer-to-peer payment network run by Early Alarm Services, a company owned by the banks, allows for instant payments between consumers and other businesses. It quickly grew to become the largest service of its kind in the US.

Zelle Service:

The report pointed out that in recent years, Democratic lawmakers have criticized the banks for financial crimes taking place on the Zelle platform.

Rohit Chopra, CFPB Director, stated: “The largest banks in the country felt threatened by competing payment apps. As a result, they rushed to introduce Zelle, failing to implement the necessary safeguards.”

He added: “Zelle has become a goldmine for scammers, while victims are often left to handle the situation on their own.”

According to the report, the recent measures are not unique to Libya alone, indicating a global trend in tightening financial oversight and addressing fraud.

Exclusive: Despite the Audit Bureau’s Rejection, the National Oil Corporation Agrees to Settlement with Company Accused of Supplying Contaminated Gasoline to Libya

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Our exclusive sources revealed that in a new development in the case against Lukoil, filed in English courts, Libya is being asked to pay outstanding amounts totaling $42 million, including fines. These amounts are being demanded by the company for supplying contaminated gasoline, which led to the conviction of the general director of marketing in a case that has captured public attention for years.

The sources added that the company that supplied the contaminated gasoline and the National Oil Corporation have agreed to a settlement, in which the company will waive $7 million in exchange for receiving the remaining outstanding amount of $35 million. This agreement comes despite the Audit Bureau’s rejection of the settlement.

The sources raised a key question: “Is it possible for the company to waive its rights in this manner if it wasn’t involved and its position is weak before the judiciary? Has collusion by entities that dealt with the company opened the door for a settlement that has resulted in the complete loss of Libyan rights and potentially opened the door for the importation of more counterfeit goods?”

Global Platts: Oil Shutdown in 2025 Signals More Chaos in the “Mafia State”

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Global Platts, the British agency, revealed part of its 2025 commodities series today, also focusing on the oil and gas sector.

According to the agency, Libyan oil production rose in November to 1.17 million barrels per day, according to estimates from Standard & Poor’s Global Commodity Insights. This is the highest production figure since October 2022. However, considering the volatile security situation and the fractured policies in the country, the recovery is unlikely to last long, according to Libya observers.

The British agency stated that Libya holds the largest reserves of oil and gas in Africa, but it has been mired in chaos since the overthrow of Muammar Gaddafi in 2011 and has not yet recovered. In 2014, the country was divided between two competing governments in the west and east.

The agency noted that following a weeks-long oil shutdown due to a dispute over the leadership of the Libyan Central Bank, which ended in early October, oil production rose.

Analysts stated that the vital sector will remain at the mercy of political actors in the coming year.

A source from the oil and gas sector in Tripoli, who requested anonymity, said: “If anyone understands what will happen politically in 2025, they will understand what will happen in the oil and gas sector. The National Oil Corporation wants to say that production is rising and things are stable, but 2025 will be similar to 2024.”

The agency confirmed that key issues on the agenda include negotiations between the National Oil Corporation and foreign companies about major projects, the impact of Syrian President Bashar al-Assad’s fall on political stability in Libya, and the fragile ceasefire between Prime Minister Abdul Hamid Dbeibah and Libyan National Army Commander Khalifa Haftar in the east of the country.

Prominent analyst at Verisk Maplecroft, Hamish Kinnear, stated that 2025 presents mixed prospects for Libya’s oil and gas sector. On one hand, Libya’s production reaches record levels, global oil companies resume exploration, and the sector sees its best performance since the 2011 civil war. On the other hand, the recent central bank crisis and oil and gas shutdowns, along with Libya’s entrenched political conflict, could lead to sudden disruptions in the country once again, according to the British agency.

Africa Intelligence: Libyan Investment Authority Seeks to Negotiate Frozen Assets Abroad

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The French intelligence website, Africa Intelligence, reported today, Thursday, that the Libyan Investment Authority is resuming its battle to recover Libyan assets.

The site confirmed that the head of the Investment Authority, Ali Mahmoud Hassan, is seeking negotiations on the use of frozen assets during his discussions with the United Nations sanctions committee on Libya.

Exclusive: Audit Bureau Deputy Discusses with the General Administration for Oversight of the Energy and Public Companies Sectors the Work of Technical Committees Observing the Annual Oil Inventory

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The Deputy of the Libyan Audit Bureau held discussions with the General Administration for Oversight of the Energy and Public Companies Sectors about the work of technical committees serving as observers in the annual oil inventory operations.

He emphasized the need to crown oversight efforts with a comprehensive qualitative report supported by technical observations and recommendations aimed at improving governance of inventory processes and addressing any negative phenomena in this regard.

During the meeting with the Energy Sector Oversight Administration, the Deputy addressed the issue of financial settlements concerning Mellitah Oil and Gas Company and the absence of its revenues over the past ten years.

He explained that delays in the settlement procedures by Mellitah resulted in approximately $53 billion being subject to noticeable negligence in their settlement by the National Oil Corporation (NOC) and the foreign partner.

The Deputy stressed the importance of urging the NOC to address this issue while safeguarding Libyan rights, noting that prolonged settlement periods further complicate and obscure the situation.

He also requested the Oil Sector Oversight Administration to submit a report on the matter within three weeks.

World Bank: Fuel Smuggling from Libya Exceeds $5 Billion Annually

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The World Bank has revealed in a report that Libya introduced its subsidy program in 1971, covering essential food products, energy, public services such as water and sanitation, education, medicines, and animal feed. The program aimed to set affordable prices for basic consumer goods and shield consumers from global price shocks.

The report noted an attempted reform of the subsidy system between 2005 and 2010, which failed before the 2011 uprising. The subsidy system continues to burden the state budget significantly.

The World Bank confirmed that subsidies and controlled prices in Libya are integral to the social contract, representing an average of 9.3% of the GDP during 2015–2023, according to the budget of the Government of National Unity. However, Libya’s subsidy system is highly inefficient, with a significant portion of subsidized fuel smuggled to neighboring countries. The estimated fuel smuggling amounts to no less than $5 billion annually. Given Libya’s limited refining capacity, the country imports or “trades” fuel and sells it at subsidized prices.

According to the World Bank, Libya has increased fuel imports from Russia, particularly since February 2023, following the EU’s ban on Russian petroleum products. Libya ranks as the third-largest buyer of Russian diesel globally and the largest in the Arab world. Moreover, fuel smuggling from Benghazi port has reportedly surged significantly since the onset of the war in Ukraine.

Beyond the substantial financial costs, smuggling subsidized fuel also contributes to domestic shortages. At a subsidized price of 0.15 Libyan dinars per liter, Libya has the second cheapest fuel globally after Iran. However, fuel shortages frequently occur in the south, where prices in the parallel market can reach up to 7 dinars per liter when fuel is available. Discussions about subsidy reform are ongoing, with the most recent being in January 2024, when the Government of National Unity announced plans to replace fuel subsidies with cash transfers. However, reforming the social rent system and redistributing wealth remains challenging for a government grappling with political instability and limited authority and representation.

The World Bank emphasized that subsidy reforms in Libya must be accompanied by adequate cash transfers. A study conducted by the World Bank on subsidy reforms highlights that subsidies for gasoline and electricity—accounting for over 90% of household energy consumption and the same proportion of government spending on subsidies—decline sharply in absolute terms. On average, each individual benefits 3.5 times more from energy subsidies than from subsidies on electricity and gasoline combined, according to the World Bank.

Al-Shaeibi Explains the Importance and Implications of the Federal Reserve’s Alert to the Central Bank Regarding Dollar-Denominated Transactions

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Banking expert Omran Al-Shaeibi commented on the letter sent by the Central Bank of Libya to the Audit Bureau in response to the alert issued by the U.S. Federal Reserve, which called for subjecting its dollar-denominated transactions to review and auditing. He described this alert as a significant indicator of the nature of the relationship between the Libyan banking sector and international financial institutions. Al-Shaibi stressed the need for serious action, as this measure falls under the “de-risking” policy, whereby financial institutions end or restrict business relationships with certain clients or client groups to avoid risks, instead of managing them in line with the Financial Action Task Force (FATF)’s risk-based approach.

Al-Shaeibi explained the importance and implications of this measure as follows:

  1. Loss of Institutional Trust: This measure reflects deep concerns from the U.S. Federal Reserve about the Central Bank of Libya’s ability to manage its financial operations according to international standards. This impacts the bank’s reputation and reduces international dealings.
  2. Complicated Financial Operations: This involves subjecting international financial transactions to meticulous reviews or involving a third party in auditing processes, as indicated in the alert. Such actions could disrupt vital financial operations, such as collecting oil revenues or facilitating essential imports.
  3. Direct Economic Repercussions: Restrictions on dollar-denominated transactions may delay the country’s ability to meet external obligations, negatively affecting national economic stability and hindering the state’s ability to provide basic goods or maintain monetary stability.

He added that the implementation of the “de-risking” policy by international financial institutions, as per the FATF, is not solely tied to risks of money laundering and terrorism financing. It also reflects a comprehensive assessment of the institution’s adherence to the 40 international standards set by the FATF. This approach is based on internal risk assessments without requiring formal justification.

Al-Shaeibi emphasized the need for the Central Bank to enhance its procedures and demonstrate its ability to comply with international standards to restore correspondent institutions’ trust. This includes:

  • Preventing delays in international financial transactions.
  • Avoiding disruptions in financial flows with the global market.
  • Strengthening measures against money laundering and terrorism financing.
  • Developing a robust “Know Your Customer” system.
  • Increasing transparency in managing financial operations.
  • Engaging reputable third-party financial institutions to manage risks.
  • Seeking advisory support from international financial institutions to enhance compliance standards.
  • Working on a long-term strategy for sustained improvements.

He concluded by stating: “The recent uncalculated breach of the Central Bank has led international institutions to take stringent measures until trust in Libya’s financial institutions is restored. However, we trust the new board of directors and technical teams at the Central Bank to overcome this obstacle successfully.”

Al-Haddad: These Are the Reasons Behind the U.S. Federal Reserve’s Suspension of Dealings with the Central Bank of Libya

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Banking expert Ibrahim Al-Haddad stated in a post on his official page that the Central Bank of Libya has lost its status and credibility, as he described it. He attributed the U.S. Federal Reserve’s suspension of dealings with the Central Bank of Libya until an international auditing firm is assigned to review the bank to a complete lack of transparency and disclosure, which raised concerns about the bank’s condition. He also pointed to the inaccuracy of the bank’s financial statements, balance sheets, and financial positions, along with contradictions in the announced data, information, and statistics.

In his post, Al-Haddad added: “There is ambiguity regarding Libya’s foreign currency reserves abroad and fears surrounding them, especially after Al-Kabeer’s statement that they amount to $29 billion instead of the $84 billion reported in the International Monetary Fund’s report. Deloitte’s internationally commissioned financial audit reports have revealed very serious violations, breaches, and substantial risks in the bank’s procedures and operations.”

Al-Haddad further noted: “Deloitte and the Organized Crime and Corruption Reporting Project (OCCRP) disclosed suspicious practices involving significant manipulation in amending the contract between the bank and the British company De La Rue for printing currency. This resulted in massive losses amounting to $4.8 billion, or 6.5 billion Libyan dinars. Additionally, Libyan currency was unlawfully printed in Russia by the company Goznak at a very high cost of $6 per banknote, whereas the global standard at the time was between 4 to 13 cents per note. Furthermore, Deloitte’s report was concealed by Al-Kabeer and Al-Hibri, allegedly to preserve their positions and hide their corrupt practices.”

He also pointed out: “A report by the World Gold Council revealed the disappearance of 27.18 tons of Libya’s gold reserves held at the Central Bank in 2014. The bank failed to announce this reduction, as the reserves dropped from 143.82 tons to 116.64 tons. The IMF noted that the Central Bank recently purchased 30 tons of gold, which was considered an attempt to obscure previous facts and events. Additionally, Global disclosed suspicions of corruption and money laundering related to foreign credits and transfers exclusively directed by Al-Kabeer to ABC Bank in London.”

Al-Haddad concluded his post, stating: “Meetings held by former Governor Al-Kabeer and the current Acting Governor with ambassadors from various countries, where they disclosed secrets and information about the bank and the state’s condition, as well as meetings with international organizations, the U.S. Federal Reserve, and the U.S. Treasury in Tunisia, revealed the unstable situation of the Central Bank. These meetings confirmed the inefficiency, inexperience, and inability of the Acting Governor and his deputy to manage the bank’s affairs effectively, leading to the U.S. Treasury’s support for the Federal Reserve’s aforementioned measures.”

Al-Shaeibi: This Notice Signals a Serious Risk in the Relationship Between the Libyan Banking Sector and International Financial Institutions

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Economic expert Omran Al-Shaeibi an article saying: Social media platforms have circulated the letter sent by the Central Bank to the Audit Bureau based on the warning issued by the U.S. Federal Reserve to the Central Bank regarding subjecting its dollar-denominated transactions to review and auditing.

This notice signals a serious risk in the nature of the relationship between the Libyan banking sector and international financial institutions and requires dealing with it with utmost seriousness. This measure falls under the “de-risking” policy described by the Financial Action Task Force (FATF), where financial institutions terminate or restrict commercial relationships with clients or categories of clients to avoid risks instead of managing them, in line with FATF’s risk-based approach.

What is the significance of this measure and its implications?

Firstly, the loss of institutional trust, as this procedure expresses deep doubts from the Federal Reserve about the Central Bank of Libya’s ability to manage its financial operations in accordance with international standards, affecting the reputation of the Central Bank and consequently reducing international transactions.

Secondly, complicating international financial operations and subjecting them to rigorous reviews or involving a third party in auditing processes, as noted in the letter, which could lead to disruptions in critical financial operations such as collecting oil revenues or facilitating essential imports.

Thirdly, direct economic repercussions due to restrictions on dollar-denominated transactions that could result in delays in fulfilling the state’s external obligations, negatively affecting national economic stability and impacting the state’s ability to provide essential goods or maintain monetary stability.

The application of the “de-risking” policy by international financial institutions, according to the FATF, is not only related to risks of money laundering and terrorism financing but also reflects a comprehensive view of the concerned institution and its adherence to the forty international standards set by the FATF. This does not require formal justification, as it pertains to risk management based on internal evaluations.

The Central Bank must improve its procedures and prove its ability to adhere to international standards to regain the trust of correspondent institutions, prevent delays in international financial transactions, avoid disruptions in financial flows with the outside world, enhance anti-money laundering and terrorism financing measures, develop a robust system for implementing “Know Your Customer” procedures, raise transparency levels in managing financial operations, involve reputable and trusted financial institutions as third parties to manage risks, seek advisory support from international financial institutions to improve compliance standards, and work on a long-term strategy.

When the Central Bank was stormed in the past period through uncalculated methods, it prompted international institutions to take measures that will remain strict until confidence in the financial institutions of the Libyan state is renewed.

We also trust the new board of directors and the technical staff at the bank to overcome this obstacle successfully.

Exclusive: The Central Bank Reveals Arrival of a New Shipment of Cash from Abroad

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The Central Bank of Libya exclusively revealed toour source that a new shipment of cash arrived this evening from abroad. The cash was immediately transported to the Central Bank’s vaults to prepare it for distribution to all branches of commercial banks in Libya, in accordance with the previously approved timeline.

This step comes as part of the Central Bank of Libya’s plan to ensure cash availability, under the directives of Mr. Naji Mohammed Issa, the Governor of the Central Bank, and his deputy.

Abu Snina Writes About the Federal Reserve’s Warning to the Central Bank of Libya on Reviewing Dollar Transactions

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Economic expert Mohammed Abu Snina wrote about the warning issued to the Central Bank by the U.S. Federal Reserve regarding the review and audit of its dollar-denominated transactions:

This measure falls under what is known as D-Risking, a procedure adopted by international financial institutions when they perceive financial risks associated with their transactions with certain banks or financial institutions. This often leads to suspending transactions with them.

Typically, the risks necessitating the review of financial transactions of a central bank or a financial institution operating in international markets include money laundering and terrorist financing risks (AML-CTF), as well as weak “Know Your Customer” (KYC) procedures applied by financial institutions under scrutiny for financial risks.

The measure reflects doubts about the financial institution’s ability to manage its funds transparently, implying a loss of trust in its management. This loss of trust is the worst scenario any financial institution can face.

The Federal Reserve’s decision to request the involvement of a third party to review financial operations with the Central Bank indicates that the Federal Reserve faces challenges in managing risks associated with financial transactions with the Central Bank and the Libyan banking sector in general or in managing these risks efficiently.

Naturally, the procedures adopted by international financial institutions to hedge against financial risks resulting from their dealings with various institutions vary from one institution to another, depending on the level of expected financial risks.

To continue financial transactions with high-risk institutions, third-party financial institutions with robust risk management systems are often engaged. These institutions are chosen based on their reputation and the financial risk management system they adopt.

According to the Financial Action Task Force (FATF), the application of D-Risking to any institution indicates a complex situation that goes beyond merely complying with anti-money laundering and terrorist financing procedures. It requires adherence to the full forty recommendations and standards of FATF directed at financial institutions. Notably, institutions implementing D-Risking policies with their clients are not obligated to justify the procedure or base it on judicial rulings. Risk management is an internal matter determined by the financial institution itself. The institution subjected to this procedure or ban (the customer or client) is only required to comply and rectify its situation.

Underestimating or downplaying the significance and seriousness of subjecting the Central Bank to D-Risking risks does not serve the national economy or the future of the Libyan banking and financial sector. This issue should be taken seriously and requires a strategy to ensure the sustainability of financial transactions with the external world. Such a strategy is necessary to avoid delays and disruptions to dollar-denominated transactions with correspondent banks abroad, including the collection of oil revenues in dollars. These disruptions would affect economic stability, the supply of consumer goods, the state’s ability to meet its external obligations, and result in losses for the Central Bank and the Libyan banking sector as a whole.

Exclusive: Al-Zantouti Comments on the Central Bank of Libya’s Statement

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Financial expert Khaled Al-Zantouti exclusively told our source regarding the Central Bank’s recent statement: “The average Libyan household consumes imported goods and services worth over 21,000 Libyan dinars monthly, which is three times the value of our oil exports.”

He added, “I was deeply astonished by the Central Bank’s recent statement and the figures it disclosed. It stated that during just 18 days of December, $3.5 billion worth of currency purchase requests were processed. Of this, $1.7 billion was for letters of credit and another $1.7 billion for personal transfers—staggering figures.”

Al-Zantouti explained, “This means we are transferring approximately $200 million daily, equating to about one billion dinars per day, to fund imports and other purposes. And as for ‘other purposes,’ you can underline that ten times. One billion dinars daily—day after day—are spent by Libyans on food, drink, medical treatment, and other needs, all sourced in foreign currency and from outside Libya. This averages 143 dinars per individual per day, assuming a population of 7 million Libyans.”

He elaborated, “For a family of five, this translates to approximately 21,450 dinars in imported goods and services per month. (This assumes that the consumption by foreigners is ultimately borne by Libyans.) Is this reasonable?”

He added, “Now let’s take another perspective: Based on the average Brent crude price of $72.5 per barrel for the first 18 days of this month and factoring in daily export volumes, the foreign partner’s share, and local refinery consumption, Libya’s oil revenues will not exceed $1 billion over these 18 days. This means that even if the full value of these exports were deposited in the Central Bank’s external account, we would still face a hard currency deficit of over $2.5 billion. In essence, our consumption exceeds three times the value of our oil exports.”

He noted, “This analysis is solely for imported goods and services. It does not even account for salaries and other public budget expenditures. Whatever the reasons or justifications, even if tied to year-end processes or annual closures, these figures are alarming, frightening, and disheartening.”

He concluded with a wry remark: “And then they ask me, ‘Why are you pessimistic, Mr. Khaled?’”

Commenting on the Central Bank of Libya’s Letter to the Audit Bureau: Mrajaa Ghaith Says the International Working Group Began Its Review Months Ago and Expressed Concerns, but the Matter Was Taken Lightly

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Former Central Bank of Libya board member, Mrajaa Ghaith, commented to our source regarding the letter sent by the Central Bank to the Audit Bureau. He stated that these issues had been repeatedly highlighted in the past, referencing the Global Witness report that revealed corruption in letters of credit. He also warned about the risks associated with the “Family Heads Grant,” emphasizing that it should have been disbursed in Libyan dinars. Allowing citizens to sell dollars without controls over how the currency is used or identifying the real buyers posed significant risks.

The international audit report highlighted its inability to access the letters of credit system, further indicating a lack of control over the use of foreign currency. The government’s cancellation of its agreement with a company monitoring letters of credit raised suspicions about its capability to combat money laundering and terrorism financing. The international working group initiated a review process months ago, expressed concerns, but the matter was not taken seriously.

Ghaith added: “The way the letter was leaked, which is unethical, has raised doubts about the Central Bank’s continued ability to process and approve dollar transactions through the U.S. Federal Reserve system. Perhaps some are unaware that all dollar transactions pass through specific systems in the United States, with a focus typically on countries experiencing instability. The political factor in this field cannot be overlooked.”