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Exclusive: Unveiling Documentation: Tracking “Hadrian Food Imports,” Owned by the Al-Dawadi Family – Revealing the Scale of Their Suspended Financing

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Our source exclusively obtained the commercial register and founding contract for the mentioned company in the Central Bank’s report, “Hadrian Food Imports,” which indicates that its founders are, Abdul Basit Al-Dawadi, a major shareholder in the Libyan Islamic Bank, along with his brothers, Faisal Al-Dawadi, and, Tarek Al-Dawadi, registered in the commercial register of the company under the name, Mohammed Ali Mohammed Ibrahim.

Reports from the Central Bank indicate that the company has obtained financing worth $5.9 million, which the Central Bank warned the bank against stopping foreign currency sales operations and managing the bank, deeming them a clear violation. The Islamic bank responded by stating that these measures were taken before the decision to suspend funding to the bank.

As for the rest of the companies and their subsidiaries belonging to the Al-Dawadi family, according to the commercial records attached to the news, such as the Shouf Company, which was granted funding exceeding $19 million, and the Akno Company, with two financings, one worth $4.1 million and the other $8 million.

It is worth mentioning that the Central Bank of Libya issued a warning to the Libyan Islamic Bank for granting financing to companies owned by major shareholders, resulting in the suspension of funding at the bank.

Oil Price: Financial Risks for International Oil Companies in Libya Significantly Increased After the Overthrow of Gaddafi

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Oil Price website reported today, Thursday, that after the overthrow of the Libyan leader Muammar Gaddafi, the security and financial risks for international oil companies operating in Libya increased significantly. Regardless of the dismantled government institutions and the ongoing civil war, the imminent threat of force continues to be present at the country’s main oil and gas institution.

The website pointed out that on January 7, the National Oil Corporation declared a state of force majeure at Sharara oil field after its closure, along with the Al-Feel field. This followed large protests due to the rise in local fuel prices and the precarious state of the country’s economy.

The site continued to state that due to the significant economic and political risks associated with obtaining the largest possible share of Libyan oil money, no agreement has been reached that satisfies the conflicting parties since then. Several attempts have been made to effectively direct oil funds to one side or another through a series of political maneuvers, including the management of the National Oil Corporation.

According to the oil website, in July 2022, the Prime Minister of the Government of National Unity at that time, Abdul Hamid Dbeibeh, replaced Mustafa Sanalla, who is widely respected as the chairman of the board of the National Oil Corporation with Bengdara who was a longtime colleague and friend of Dbeiebh. He warned against tampering with the National Oil Corporation or its oil revenues and managed contracts.

The site added that Bengdara held a special press conference at the main headquarters of the National Oil Corporation during which he gained the support of two major companies affiliated with the National Oil Corporation: Waha Oil Company and Arabian Gulf Oil Company, before Waha later withdrew its support.

However, even the minimum of normal life in the oil sector can allow Libya to achieve its oil goals, as there has been progress in the country’s gas sector that can be replicated.

It is worth mentioning that last year, the Italian oil and gas giant Eni signed an agreement with the National Oil Corporation to invest around $8 billion to produce about 850 million cubic feet per day from two offshore gas fields in the Mediterranean Sea.”

Exclusive: Documents and Commercial Records Reveal Libyan Islamic Bank’s Financing to Al-Dawadi Companies – Central Bank Issues Warning, Bank Provides Justification

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Our source obtained a correspondence from the Central Bank of Libya to the Libyan Islamic Bank, which included granting financing to several companies worth millions, in violation of its instructions. This action could subject the bank to severe penalties, including the suspension of the board of directors and the general manager, the formation of a temporary administrative committee, and the cessation of the bank’s foreign currency sales operations. The Central Bank demands corrective measures and the formation of an investigation committee to identify those responsible within 10 days.

In response, the general manager of the Islamic bank stated in a correspondence to the bank’s supervisory management at the Central Bank that the bank’s management is committed to complying with the instructions of the Central Bank of Libya and has not granted any financing after the suspension date.

The error in the platform is attributed to insufficient data fields and failure to keep up with financial engineering operations. These financings represent salam transactions conducted with dates preceding the suspension, and the commitment to receiving purchased goods was on dates later than the salam contracts. Therefore, the employee responsible filled in the delivery dates in the grant date field and clarified this, attaching an extract from the banking system showing the dates of salam financing grants.

It is worth mentioning that the financings highlighted in the Central Bank’s correspondence include a grant of $19.9 million to the Shouf Company for importing and distributing foodstuffs, owned by “Faisal Mawlood Abu Al-Qasim Al-Dawadi” according to the commercial register exclusively obtained by Economic Echo newspaper, a member of the prominent shareholders’ family “Abdul Basit Al-Dawadi”.

Our source also obtained the commercial register of Aktou Food Imports, which the Central Bank mentioned had been granted financing by the Islamic Bank: one totaling $4.139 million and another worth $8.100 million. Its owner, Adel Abdul Salam Ali Al-Dawadi, is from the prominent shareholder family, Abdul Basit Al-Dawadi.

It’s worth noting that the Central Bank of Libya made decisions last year to suspend granting financing to the Islamic Bank due to several observations recorded regarding the major shareholder, Abdul Basit Al-Dawadi, granting financing to his own companies in violation of regulations, prompting the bank to issue a new warning.

Ministry of Oil and Gas Responds to Corruption Accusations by Mustafa Sanalla

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The Ministry of Oil and Gas responded to the contents of the letter from the former president of the National Oil Corporation, Mustafa Sanalla, dated January 9, 2022, addressed to the Head of the Administrative Control Authority and published on some social media platforms.

The ministry stated that during the second half of 2006 and the first quarter of 2007, consultations were held between the Minister of Oil and Gas, Mohammed Aoun, who was then an advisor to the National Oil Corporation, and the board of the National Oil Corporation, along with experts. These discussions aimed to increase Libya’s share in oil agreements with foreign partners. The National Oil Corporation’s Management Committee issued Resolution No. (10) for the year 2007 on January 24, 2007, forming a committee and appointing Aoun as its chairman to study ENI’s proposal for the development of its granted areas and to prepare the technical standpoint for negotiations with various companies to improve contract terms.

The ministry added that the committee submitted its report through Aoun on March 22, 2007, consisting of about a hundred pages. The report, among its recommendations, included the option not to renew any contract approaching expiration. The ministry highlighted that contracts like the Sand Field (Concession 82), expiring in 2009, produced only about 10,000 barrels at that time, and the company had the right to request a 10-year contract extension with the approval of the Libyan government under oil law. Similarly, the Concession 100 contract, ending in 2016, was subject to negotiations to improve conditions, not terminate contracts for any reason, according to the government and the General Planning Council at that time.

The ministry also mentioned that during a presentation of direct negotiation results at a ministerial subcommittee, when someone asked why contracts nearing expiration were renewed, Aoun replied that the negotiating committees were tasked with improving conditions. The Libyan state could decide to fully secure the contracts, a recommendation Aoun couldn’t make himself. Following this, the National Oil Corporation’s Management Committee issued Resolution No. (48) for the year 2007 on April 18, forming negotiation committees.

The negotiation committees consisted of a main committee chaired by Aoun and three supporting committees (technical, legal, and financial), comprising expert oil sector professionals. Upon completing negotiations with companies, the results were presented to the National Oil Corporation’s Board for approval or modification. Subsequently, the results were presented to a ministerial subcommittee chaired by the Secretary of the General People’s Committee at that time. Afterward, a proposal to amend the agreements was presented for final approval by the General People’s Committee. The transformation of concession and participation contracts into the fourth model of exploration and production-sharing agreements yielded excellent results in favor of Libya. As a small part of this, more than ten billion dollars were secured through signatures, and the foreign party’s share was reduced to 12%, 13%, 17%, and 30% in each contract. These percentages decrease over time with production, and Libya has not lost but increased its share. Comparing what Libya obtained in 2007 to what it acquired in 2010 after the agreement adjustments revealed an increase of over 100 million barrels of crude oil annually in favor of Libya. The ministry emphasized that the benefits obtained through signatures alone in these agreements exceeded what the former president considered a loss by $250,511,611.

The ministry questioned why Sanalla waited until January 2022 to send this letter after contributing to depleting the oil sector of experts since joining the board in June 2011. It also criticized his role in selling Marathon’s share to the French company Total, delaying refinery development to meet local fuel consumption needs, and delaying the resolution of the Ras Lanuf refinery issue. Furthermore, it criticized allowing foreign companies to retain significant amounts (approximately 10.9 billion Libyan dinars) for 16 months, from which Libya gained no benefit. Additionally, it mentioned the loss of banking profits amounting to approximately 250 million Libyan dinars.

S&P Global Platts: Oil Companies Halt Projects in Libya, and Here are the Details

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The British S&P Global Platts reported in its article today, Monday, that protesters from the Ubari region in the south of the country have taken to the streets in recent days amid anger over rising fuel prices and a shortage of economic opportunities. El-FeelField, with a capacity of 70,000 barrels per day, has also been closed.

A source, who requested anonymity, told S&P Global Platts that the Sharara field, managed by a joint project between the National Oil Corporation, Equinor, OMV, Repsol, and TotalEnergies, will be forced to stop pumping.

The agency pointed out that the coercive force may have an impact on crude oil prices in the Mediterranean, where the Azerbaijan and Algeria blend is likely to see an increase in production.

The agency continued, stating that Libyan oil is highly popular among refineries in the Mediterranean and northwest Europe. Libya’s oil production is still much lower than the 1.6 million barrels per day it produced before the 2011 uprising in the country. In November, production reached 1.12 million barrels per day, according to the latest monthly survey conducted by the British Blats company for OPEC.

Africa Intelligence: Memorandum of Understanding between Italian ENI and National Oil Corporation Fails for These Reasons

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The French intelligence website, Africa Intelligence, stated today, Monday, in its article that the project of the Italian company ENI is set to fail in Libya due to the eruption of a battle between the Minister of Oil, Aoun, and the National Oil Corporation.

The French website pointed out that the major Italian oil company ENI’s project to operate the NC7 gas plant in Al-Hamada oil field in Libya may collapse.

It is worth mentioning that on March 25, 2019, in its headquarters in Tripoli, the National Oil Corporation signed two memoranda of understanding with ENI, one of the largest Italian oil companies. The first memorandum involves the formation of a management committee to oversee the gas production process in Sabratah Offshore (A, H) blocks under the concession (M-N-41).

Exclusive: Central Bank’s Director of the Banking and Monetary Control Department Warns, via Sada, of Smuggling Food and Other Goods to Neighboring Countries

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The Director of the Banking and Monetary Control Department at the Central Bank of Libya revealed in a statement to our source: “If the smuggling of food and other goods to neighboring countries continues in the absence of relevant authorities controlling border crossings, it will have a significant negative impact on the national economy.

This will deplete the state’s foreign currency reserves and complicate the tasks of commercial banks and the central bank in performing their duties throughout the year 2024.”

He continued by saying: “The Ministry of Economy and Finance must take measures to protect the national economy and implement strict procedures towards exporters of food and other goods without organized official procedures, through export credits that ensure the supply of foreign currency to Libyan banks and its reuse instead of benefiting from it in speculation and profiting in the parallel market.”

Exclusive: Al-Kabeer Informs Dbeibeh: Budget Disbursement Hinges on Parliamentary Approval

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Sources revealed in an exclusive statement to Sada Economic Newspaper that the Governor of the Central Bank of Libya, Seddiq Al-Kabeer, categorically rejected the disbursement of the budget to the Government of National Unity.

According to the sources, the Governor of the Central Bank of Libya emphasized the necessity of disbursing a budget approved by Parliament to control public spending.

The Central Bank Reveals Presidential Council Expenditures Until the End of November

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A report from the Central Bank of Libya has disclosed the expenditures of the Presidential Council and its affiliated entities from January 1 to November 30.

The expenditures of the Presidential Council amounted to 43.1 million dinars, while the expenses of the security entities exceeded 611 million dinars. The expenses of the Office of Public Policy Support amounted to 1.53 million dinars.

The expenditures of the Fact-Finding and National Reconciliation Authority reached 2.5 million dinars, and the expenses of the Office of the Supreme Commander amounted to 17.5 million dinars.

In total, the expenditures of the Presidential Council and its affiliated entities amount to more than 676 million dinars.

Africa Intelligence: Foreign Companies Rebuilding Derna Boost Transactions for Military Investment Authority

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According to the French website Africa Intelligence, business activities in the city of Derna, amidst the ruins, seem to be improving.

The French website confirms that the call issued by parallel authorities in Benghazi for foreign companies to assist in rebuilding the coastal city of Derna, destroyed by Storm Daniel in September, will enhance commercial transactions for the Military Investment Authority, according to the site.

Exclusive: CBL Corresponds with Moamalat Financial Services Company, Urging Completion of Integration with Licensed Electronic Payment Companies

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In an exclusive update, our source obtained a letter from the Director of Payments and Settlements Department at the Central Bank of Libya to the CEO of Moamalat Financial Services Company.

The Central Bank has called for the completion of integration processes with Electronic Payment Companies licensed by the Central Bank. This includes automating the processes of loading and unloading electronic wallets, prepaid cards, and settling their transactions.

The directive emphasizes the swift completion of integration with licensed companies for issuing and accepting bank cards. This aims to ensure the acceptance of cards issued by licensed companies on the national distributor and vice versa, facilitating seamless transactions.

Furthermore, the directive emphasizes the completion of the national distributor’s connection with regional and international systems to accept international cards on the local payment network.

Exclusive: CBL Discloses Exclusively About Foreign Exchange Sales During the Last Three Weeks of November

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Our source at the Central Bank of Libya revealed in an exclusive statement that the foreign currencies sold to commercial banks during the month of November, the past three weeks, amounted to approximately $1.7 billion, including $1 billion covering documentary credits and $700 million for personal items cards and transfers.

According to the source, the coverage of foreign exchange requests by the Central Bank of Libya continues at the same pace and the volume of payments covers the market needs and increases.

Aoun to Global Platts: The Use of Oil as a Weapon Against Israel Has Not Yet Been Decided

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Oil Minister Mohammad Aoun, in an interview with the British agency Global Platts today, Wednesday, stated that he does not expect OPEC to resort to imposing a similar embargo to the Arab oil movement in 1973, which caused a global oil crisis.

Aoun added that OPEC includes non-Arab countries and may not be prepared to implement such an oil embargo.

According to Global Platts, most Libyan politicians condemn the Israeli war on Gaza, but there has not yet been a consensus calling for the punishment of Israel and its Western supporters led by the United States.

Aoun pointed out that any Libyan move to turn oil into a weapon would be a government decision and could not be a decision from the Ministry of Oil.

He also confirmed that Libya’s current oil exports to the United States are diminishing compared to the quantities in the 1970s. Outflows reached 133,000 barrels per day in 1973 and peaked at 642,000 barrels per day in 1979, compared to 79,000 barrels per day in 2022, according to data from the U.S. Energy Information Administration.

According to the agency, Iranian calls for an oil embargo come amid massive voluntary oil cuts by Saudi Arabia and Russia, the two countries leading OPEC. These reductions, in addition to OPEC restrictions of 2 million barrels per day, which began in November 2022 and were extended until the end of 2024.

Exclusive: Parliament Revokes Decision Granting Omar Al-Dulaimi Chairmanship of Anti-Corruption Committee

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Our source revealed that a decision has been issued by the Speaker of the Parliament to revoke the decision enabling Omar Al-Dulaimi to chair a limited-scope committee within the National Anti-Corruption Authority, related to settling the conditions of employees and restructuring the administrative system within the authority.

The source added that the decision of the Parliament came after the violations committed by Al-Dulaimi and his attempt to storm the headquarters of the National Anti-Corruption Authority to install himself as its president.

Breaking: IMF Experts Report Positive Shifts in Libyan Banking Services – Full Details Inside!

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The IMF announced on Monday that the declaration of the reunification of the Central Bank has led to welcomed improvements in banking services and the coordination of monetary policy. It has also helped propel the reform agenda forward, as Libya urgently needs a clear economic vision and technical assistance support.

According to the IMF, a team led by Dmitry Gershenson visited the capital, Tunis, from November 15 to 16, 2023, to discuss economic and financial developments in Libya, macroeconomic outlook, and reform priorities.

The IMF stated that despite uncertainties about the flood damage, an increase in oil prices is expected. The impact of the disaster on the measured gross domestic product is likely relatively small, given Libya’s significant reliance on oil and gas production. Medium-term economic expectations remain positive due to expected global oil price increases.

The IMF emphasized Libya’s need for a budget to support policy credibility, as untargeted financial spending complicates economic policy implementation. In the medium term, the country requires an economic strategy to diversify away from oil and gas, promoting stronger and more inclusive growth led by the private sector. On the other hand, reducing untargeted subsidies is necessary for better social spending and more productive investments.

In the long term, structural reform efforts should focus on strengthening institutions, updating the anti-money laundering and counter-terrorism financing framework, and addressing corruption and governance concerns.

The IMF acknowledged the reforms implemented by Libyan authorities this year, noting significant progress in improving data collection and enhancing the anti-money laundering and counter-terrorism financing framework.

According to the IMF, the recently established High Financial Oversight Committee, including representatives from the West, to allocate financial resources is an improvement but ultimately needs further development toward a better state. The committee should:

– Prepare the budget in line with global best practices.

– The recent reunification of the Central Bank is a step in the right direction, and direct benefits from improved coordination in regions, monetary policy, and banking system liquidity and oversight should include the following steps:

– Integration of the payment system and unification of the organizational structure of the Central Bank.

– Development in various areas, including public financial management, monetary and financial matters, contingent on the pace of political reconciliation. The task of the following Article 4 consultation is expected to be completed in 2024.