The Libyan Audit Bureau published its 2024 report, confirming that the Council of Ministers of the Government of National Unity dispatched 11 envoys through seven procedures to receive overnight allowances for foreign missions amounting to LYD 119.8 thousand, while accommodation was charged to the state through a private company at a cost of LYD 447.8 thousand, despite the envoys having received the full allowance and being provided with free public housing. This indicates the submission of misleading declarations and the realization of unlawful gains.
According to the report, direct oil barter spending reached a cost of 44.5 billion, causing distortions in state data and misrepresenting the true situation. The deficit has continued from 2014 to 2024, reaching LYD 38 billion, excluding the government in the eastern region, in addition to the existence of oil quantities that are not disclosed or reported.The report also noted a decline in revenues transferred to the treasury in 2024, falling by 47% compared to 2022, and the existence of a gap of about USD 9.2 billion between realized sales and collected value due to the total cost of crude oil swaps for fuels and expenses.
The Bureau further pointed to losses in the investments of the Libyan Foreign Bank despite support provided to the Niger Commercial Bank, and Burkina Faso’s nationalization of Burkina Commercial Bank, in which the bank holds a 50% stake, due to the Libyan side’s lack of seriousness in honoring commitments and shortcomings of the bank, as well as a decline in its contributions to North Africa Bank Tunisia.
Total investments in Sahel commercial countries amounted to USD 118.9 million, while returns since establishment did not exceed USD 13.6 million, with returns not exceeding 11% of total investment cost, reflecting shortcomings and underperformance, according to the Bureau.The report also indicated that oil companies submitted inflated and unrealistic budgets, with a decline in the National Oil Corporation’s share due to the entry of new partners and preferential payment terms granted to certain clients. Oil sector expenditures rose to 32.5 billion, alongside expanded spending on foreign missions.The Corporation also rented housing for some employees at amounts reaching LYD 30,000 per month, fragmented vehicle supply contracts to evade Bureau oversight, transferred LYD 15.9 million to a German car company for vehicle supply, and carried out direct appointments of individuals lacking professional qualifications and unrelated to oil specializations.
The report revealed that the value of assets of the Libyan Investment Authority reached approximately USD 72.8 billion, an increase of USD 1.1 billion compared to 2023. The Libyan Internal Investment Fund continued to incur losses, with net losses of about USD 3.4 million during the first half of 2024, amid weak performance of subsidiary companies and failure to adopt effective solutions to stop the ongoing drain of public funds.Some subsidiaries within the long-term investment portfolio continued to struggle and incur consecutive losses, including the Housing, Tourism, and Hotel Investment Company affiliated with Sabitna, without fundamental solutions to address their conditions.
The Central Bank of Libya invested the Authority’s deposits with the Libyan Foreign Bank in violation of approved provisions stipulating that funds be invested in time deposits with global banks, with the value of deposits invested in the Libyan Foreign Bank reaching about USD 2.5 billion.The report also stated that central bank reserves reached LYD 409 billion (equivalent to USD 83 billion), alongside an increase in its currency and gold assets.According to the report, the State Properties Authority – Abu Salim Office waived usufruct rights to a vacant land plot in Abu Salim measuring 10.6 thousand square meters in favor of North Africa Development and Investment Holding Company for 90 years for LYD 86.2 thousand, while the true value of the land is no less than LYD 2.6 million.
It also waived usufruct rights to land hosting the old Abu Salim market, measuring 34.2 thousand square meters, for LYD 204.7 thousand, while its real value is LYD 8.3 million.The Authority further waived land of 21 thousand square meters to the same company for LYD 302 thousand, despite a real value of LYD 4.9 million, and waived usufruct of land in Tripoli Central Municipality measuring 1.8 thousand square meters for LYD 304.5 thousand, though its true value is at least LYD 450 thousand. The report also cited the company’s seizure of properties, including a warehouse belonging to Waha Oil Company and a property of Al-Aman Bank, and the signing of a contract to develop the Abu Salim beverage factory between Al-Kawthar Water Company (affiliated with North Africa) and the Internal Investment Fund, with an estimated cost of LYD 200 million, which constitutes suspected corruption.Additional costs were imposed on Zallaf Oil Company due to its contract with North Africa Development and Investment Holding, in partnership with Ural Drilling, to execute onshore drilling services for water wells, despite North Africa’s lack of specialization in this field.
Regarding the investment sector, the report noted a 7% decline in revenues of the Libyan African Investment Company (LAICO) due to the absence of dividend distributions and a sharp decline in extraordinary revenues. The bulk of revenues, amounting to LYD 16.39 million, consisted of interest on non-performing and hard-to-collect loans, rendering these revenues uncertain in terms of cash realization.Expenses increased by 19% due to a 43% rise in administrative and general expenses (equivalent to LYD 2.5 million), reflecting unjustified spending expansion and financial instability. Profits do not reflect real performance due to reliance on interest from distressed loans, weak oversight of administrative expenses, and continued deterioration of LAICO Tunisia’s financial performance, which recorded increased losses in 2023 by TND 1.9 million compared to 2022, alongside rising financial obligations reaching USD 2.1 million, classified as high-risk liabilities, threatening the company’s continuity and operations.The financial performance of the Mediterranean Company for Tourism Studies and Projects also deteriorated, shifting from profits in 2022 to losses in 2023 amounting to TND 941.7 million.
The Ghanaian Arab Libyan Holding Limited recorded increased financial obligations reaching USD 32.5 million, including loans and interest, exposing it to significant financial risks.According to the report, LAICO Central Africa incurred escalating financial losses during 2022–2023 exceeding 5.9 billion CFA francs, reflecting ongoing financial deterioration. It also noted the failure to specify currency type in LAICO Zambia’s lease contracts and disproportionate rental prices, where the same villa’s rent reached USD 2,000 in earlier years and later fell to USD 200.The report observed that rental values were often low relative to the leased assets, including leasing a café for 2,500 Zambian kwacha per month (about USD 150) without clearly specifying the area, and leasing a complex including a gym, tennis court, squash court, swimming pool, two saunas, and other facilities for 27,000 Zambian kwacha per month (about USD 1,600). It also highlighted a significant increase in penalty clauses upon contract termination by the company, including USD 800,000 for terminating a contract with Falcon Company and 500,000 Zambian kwacha for terminating the café contract, as well as long-term contracts of up to 20 years without clear justification.Legal expenses rose to about 1.1 million Zambian kwacha in 2023 due to multiple cases, notably disputes over legal representation of the company. The report also noted the general manager’s salary rising to EUR 6,075 per month, in addition to a quarterly performance-based bonus that could reach EUR 33,000 annually.Revenues declined due to reduced demand for villa and office rentals because of aging assets and maintenance needs, with several units taken out of service, neglect of green spaces, and intensified competition in the sector.
Total equity as of December 31, 2023 stood at a negative 2.6 million Zambian kwacha. Payments of 18.1 thousand Zambian kwacha were made via a check dated July 15, 2016 for renovation works without authorized disbursement, and 18 thousand Zambian kwacha were paid for labor costs without supporting documents.The report also cited the inclusion of the former finance director’s salaries under maintenance expenses to reduce taxes, based on handwritten notes on disbursement vouchers, despite attached invoices from suppliers and contractors, undermining their credibility. It recorded the payment of EUR 33.3 thousand on January 22, 2024 to the general manager as an annual bonus for 2023, despite the company not achieving profits that year, in addition to cash withdrawals to cover various expenses at the request of the general manager instead of using approved banking instruments such as checks or transfers.
