Libyan Airlines: Over 6 Million LYD, 10 Million USD, and 1.2 Million SAR Wasted According to 2024 Audit Bureau Report

The 2024 Libyan Audit Bureau report revealed serious financial violations at Libyan Airlines. The former chairman, A.A.Q, at the airline’s Tunis office, contracted lawyer K.M.Z to handle company cases inside and outside Libya. Legal fees and consultations from 2015 to 2019 totaled 650,426 TND, 40,900 EUR, and 26,442 USD. Most cases assigned to the lawyer were also referred to other lawyers at additional cost, raising questions about his role and the justification for the high payments, which included travel and accommodation expenses, including trips to Paris with his spouse.

The lawyer also received 70,000 EUR for a case against Tunisian company Sfax, despite the company declaring bankruptcy, as well as other payments of 13,000 EUR and 28,000 EUR for cases in Tripoli, Benghazi, and Al-Bayda, all paid in foreign currency from Tunisia. He also received 10,000 TND for a real estate dispute in Paris, though this fell under the regional manager’s duties.

A 2014 armored Toyota Avalon was purchased in 2016 for 47,500 USD without clear justification or proper delivery procedures.

The report also highlighted irregularities in cash management: a Tunis bank account was opened and funded with USD from Tripoli during 2017–2021, with 100,000 USD taken in cash and partially deposited into a personal account as a “deposit.” Additional transfers brought the balance to 688,505 USD by August 2017.

Unjustified spending included New Year gifts (18,156 TND), ceramic sets (40,220 USD), office furniture (18,842 USD) despite local availability, and company trips to Paris (12,281 USD) and Brussels (11,934 EUR) without official approvals. Accommodation allowances, executive bonuses, and hotel bills were also paid without authorization, including 36,021 EGP as a severance payment to a driver involved in accidents while under the influence.

In 2020, 49% of Hotel Mushtal invoices (27,474 TND) covered stays of the former chairman, and other officials stayed in hotels without official approvals. The company also made direct cash payments from revenues, violating regulations, including medical and educational expenses for employees’ children, totaling tens of thousands of LYD without supporting documentation.

Mismanagement extended to salaries and allowances, including 150,484 USD for a period from March 2022 to July 2023 without legal basis, additional claims of 185,892 USD, and unauthorized payroll for previous employees. Other unauthorized expenses included VIP services (25,000 USD), security allowances (7,000 LYD), and unjustified travel allowances.

In Saudi Arabia, mismanagement and lack of oversight led to fines exceeding 1,200,000 SAR due to non-compliance with flight regulations during Hajj and Umrah seasons. A dispute with the General Authority for Hajj and Umrah over the 2022 season involved 1,738,793 LYD, with discrepancies in transfers and unexplained payments.

Legal consultancy contracts with lawyer A.M.A, in effect since 1993, continued without formal renewal, with fees increasing from 2,000 EGP to 116,228 EGP in 2024, despite poor performance and lack of actual deliverables.

The report concluded that weak internal controls, cash-based disbursements, delayed financial documentation, misuse of allowances, and unauthorized payments, including security bonuses of 9,000 USD instead of 600 USD, as well as ticket refunds without management approval, caused significant financial losses for the airline.