Skip to main content

Tag: audit bureau

The Chairman of the Audit Bureau and Law No. (2) is void

Written by Amira Cherni on . Posted in News. No Comments on The Chairman of the Audit Bureau and Law No. (2) is void

Our source obtained a correspondence from the Department of Cases regarding communication with the Central Bank, the Audit Bureau, and the Authority about the invalidity of Law No. 2.

It confirmed that Khaled Shakshak’s position as Chairman of the Audit Bureau remains in effect, and that financial oversight in its three forms—prior, concurrent, and post-audit—is an exclusive mandate of the Bureau, as it was before the issuance of the void Law No. 2.

Oversight Report: Cancer Control Authority Records a Decline from 1.56 Billion (2024) to 12 Million (2025)

Written by Amira Cherni on . Posted in News. No Comments on Oversight Report: Cancer Control Authority Records a Decline from 1.56 Billion (2024) to 12 Million (2025)

The report of the joint committee between the Audit Bureau and the Anti-Corruption Authority revealed that the financial trajectory of the Medical Supply Organization during the period 2022–2025 is non-linear and reflects the absence of a stable pharmaceutical demand model.

The report stated that the sharp change in expenditure does not correspond to the nature of the healthcare sector, which is expected to demonstrate stability or gradual growth. This indicates weaknesses in financial planning and the absence of a link between allocated budgets and actual consumption indicators.

According to the report, the sharp discrepancy in funding for certain specialized authorities reflects a lack of stability in financing policies. The Cancer Control Authority recorded a decline from 1.56 billion in 2024 to 12 million in 2025.

It also noted that the institutional expansion in the number of beneficiary entities led to clear regulatory inflation, as the system shifted from a clearly centralized structure in 2022 to more than 25 entities in 2025, resulting in reduced traceability and increased risks of corruption.

The report further confirmed that the assessment of financial efficiency reveals structural weaknesses in the financial governance of pharmaceuticals, manifested in the absence of centralized procurement, weak tracking mechanisms, and fluctuating expenditure, all of which increase the likelihood of waste and misuse.

Joint Audit Bureau and Anti-Corruption Committee Report Reveals Fuel Subsidy Disorder in Libya, Legal Loopholes, and Billions Outside Oversight

Written by Amira Cherni on . Posted in News. No Comments on Joint Audit Bureau and Anti-Corruption Committee Report Reveals Fuel Subsidy Disorder in Libya, Legal Loopholes, and Billions Outside Oversight

A report issued by the joint committee between the Libyan Audit Bureau and the Anti-Corruption Commission revealed legislative overlap and duplicated responsibilities between the National Oil Corporation and Brega Petroleum Marketing Company, resulting in weak oversight and accountability.

The report confirmed that Brega Petroleum relies on approximate and traditional estimates to determine local fuel market needs and lacks scientifically validated studies.

It also noted record increases and unexplained inflation in fuel withdrawals allocated to the public security sector, the armed forces, and the electricity sector between 2021 and 2024. Gasoline withdrawals by the public security sector increased by 621%, while diesel withdrawals rose by 441% in 2024 compared with 2021. Diesel withdrawals by the armed forces recorded a remarkable increase of 1,527% during the same period.

According to the report, recommendations included imposing a daily late-payment penalty of 0.5% on fuel distribution companies that fail to settle their obligations on time, suspending fuel supplies to companies whose debts exceed 30 days, requiring fuel distributors to transfer revenues to the Ministry of Finance account within 48 hours of receiving fuel allocations, and installing GPS tracking systems and sensors on fuel tankers and storage facilities to improve distribution monitoring and combat waste and smuggling.

The report stated that the proposed fuel-sector reform roadmap aims to reduce imported fuel quantities by between 25% and 30% in order to protect public resources.

The report further found that Libya’s fuel subsidy system suffers from serious legislative and financial loopholes that have weakened transparency and oversight, while relying on unclear mechanisms for financing subsidies outside the state’s general budget. It also noted the absence of explicit legal provisions regulating fuel subsidies within the Financial System Law, despite fuel subsidies being one of the largest categories of public expenditure. This situation leaves room for discretionary interpretations and unregulated administrative decisions.

The Financial System Law does not provide for a dedicated government account for fuel subsidies, nor has the authority to establish additional accounts for subsidy management been activated within a clear and stable legal framework. The lack of a legal basis for fuel subsidy allocations makes them vulnerable to financial transfers and limits the existence of binding oversight mechanisms to monitor expenditures and ensure fiscal stability.

According to the report, the Budget, Accounts, and Warehouses Regulation does not clearly define the mechanism for preparing fuel subsidy estimates or identify the responsible authority, highlighting weaknesses in the regulatory framework governing the system. The fluctuation of fuel subsidy allocations and the complete reliance on the oil-for-fuel swap system have resulted in the importation of large quantities without clear financial controls, making actual expenditures difficult to track.

The report also argued that using oil resources to import fuel through the swap mechanism violates financial regulations governing public funds and contributes to concealing part of the state’s actual revenues and expenditures. It highlighted significant weaknesses in collecting fuel revenues from distribution companies, noting that total collections during 2022, 2023, and 2024 amounted to only LYD 596.7 million, amid ineffective collection and accountability mechanisms.

The committee recommended introducing a mandatory fuel subsidy item within the state budget, determining its allocations according to clear criteria and linking them to global price fluctuations. It also called for greater transparency through monthly reports from the National Oil Corporation, Brega Petroleum, and the Ministry of Finance detailing imported and distributed quantities and subsidy allocations.

Additional recommendations included improving revenue collection from fuel distributors by obligating them to transfer revenues within 48 hours, imposing penalties on late payments, and suspending fuel distribution to companies with debts exceeding 30 days.

The report noted that the Government of National Unity approved fuel subsidy allocations worth LYD 5.2 billion in 2022 following a financial reallocation of LYD 2.6 billion. The 2023 budget did not include any fuel subsidy allocations despite continued spending through the swap system, while the temporary monthly appropriations approved for 2024 likewise contained no fuel subsidy allocations.

According to the report, the swap system understated the state’s official revenues and expenditures by between 30% and 35%. Actual revenues collected from fuel distribution companies during 2022, 2023, and 2024 amounted to only LYD 596.7 million.

The committee also recommended imposing a daily late-payment fine of 0.5% on companies that fail to transfer revenues owed to the Ministry of Finance and preventing fuel distribution to companies whose outstanding debts exceed 30 days until their financial obligations are settled.

After PR Campaigns and Media Spin, Corruption at Brega Tops Latest Audit Bureau Report – Part One

Written by Amira Cherni on . Posted in News. No Comments on After PR Campaigns and Media Spin, Corruption at Brega Tops Latest Audit Bureau Report – Part One

The 2024 report issued by the Libyan Audit Bureau revealed delays by the General Assembly of Brega Petroleum Marketing Company in approving the company’s operational budget for the 2024 fiscal year, as the budget was only formally approved during the third quarter of the year. The report also noted that expenditures charged to several budget items exceeded the allocations approved in the company’s estimated 2024 budget.

The report further disclosed that a committee assigned by the company’s management to furnish the guest house exceeded its authority and assumed the role of the tender committee by soliciting bids from companies, comparing them, selecting the preferred offer, and authorizing the payment of 3.16 million Libyan dinars, in violation of Article 3, Paragraph 1 of the Unified Contracting Regulation for the oil sector.

In addition, the report revealed that the company contracted Aoun Al Arab Consulting to prepare operational plans, restructuring frameworks, job descriptions, and procedural manuals for a total value of $632,562 through direct assignment, based on Resolution No. 219 of 2024 issued by the Board of Directors of the National Oil Corporation. However, the report stated that none of the provisions of Article 24, Paragraph 1 of the Unified Contracting Regulation for the oil sector appeared applicable to justify this direct contract, while no clear criteria or justification were provided for selecting the company specifically.

The report also pointed to discrepancies in most data related to imported quantities of gasoline, diesel, and aviation kerosene, in addition to inconsistencies between total imports recorded by the Supply and Marine Transport Department and those recorded by the Planning Department.

Furthermore, the report identified discrepancies between quantities received according to delivery reports and quantities supplied according to shipping manifests during 2024. The total shortages amounted to 28,353.22 metric tons of gasoline, 13,476.18 metric tons of diesel, and 305.071 metric tons of aviation kerosene. The report noted the absence of any officially approved standard loss ratio by the National Oil Corporation, reflecting weak oversight and control over supply operations.

The report also highlighted rising commercial and operational losses in gasoline and diesel, with gasoline losses reaching 7,310,716 liters and diesel losses totaling 2,848,837 liters.

Additionally, it noted the use of massive quantities of diesel in power generation stations without linking consumption to operational efficiency, reflecting weak monitoring mechanisms and an urgent need for accurate measurement systems, meter calibration, and digital tracking of transportation and distribution operations.

Despite all these findings, figures, and observations contained in the reports of the Audit Bureau and oversight authorities, supporters and image-polishers continue attempting to downplay the scale of the violations, even as official reports and documents increasingly speak louder than any media campaign or public relations effort.

Ahmed Al-Masalati Denies Audit Report on Brega and Attacks Allegations Against It

Written by Amira Cherni on . Posted in News. No Comments on Ahmed Al-Masalati Denies Audit Report on Brega and Attacks Allegations Against It

Ahmed Al-Masalati, former media office director at Brega Petroleum Marketing Company and currently head of the media office of the General Oil Workers’ Union (reportedly appointed while on a scholarship in Malaysia funded by Brega), has rejected the claims made by the Libyan Administrative Control Authority regarding Brega withholding data on local production.

He dismissed the findings of the authority’s latest report, stating that Brega is not a production or refining company in the first place, and therefore cannot be required to disclose production figures to the oversight body.

His remarks have been seen by some observers as contradictory to what is stated in several local and international reports, including reports issued by the UN Security Council and various Libyan oversight institutions, which reference Brega within the national fuel supply and distribution chain.

Supreme Court Confirms the Audit Bureau’s Exclusive Authority Over All Types of Financial Oversight on Contracts

Written by Amira Cherni on . Posted in News. No Comments on Supreme Court Confirms the Audit Bureau’s Exclusive Authority Over All Types of Financial Oversight on Contracts

The Legal Affairs Office of the Audit Bureau exclusively revealed to our source that the Supreme Court, through its Constitutional Chamber, issued a ruling today, Tuesday, in the case filed by the Audit Bureau. The ruling ordered the removal of obstacles to the implementation of the constitutional judgment issued in Appeal No. (9/70) and obligated all state entities in Libya to continue enforcing it.

The statement added that the ruling affirms the Audit Bureau’s exclusive jurisdiction over financial oversight in all its forms—concurrent, subsequent, and prior—on contracts. It also strips the Administrative Control Authority of the power to exercise these competencies.

Public Prosecutor and Audit Bureau Reveal Violations in Telecom Holding–Rawafed Contract After Reactivation Through Settlement

Written by Amira Cherni on . Posted in News. No Comments on Public Prosecutor and Audit Bureau Reveal Violations in Telecom Holding–Rawafed Contract After Reactivation Through Settlement

Our source obtained a copy of correspondence revealing investigations by the Public Prosecutor regarding the agreement between the Telecom Holding Company and Rawafed Company. The Telecom Holding Company, under its current management headed by Ali Bin Gharbia, had previously concluded a settlement with Rawafed and reactivated the contract.

The newspaper also obtained a copy of an earlier correspondence issued by the Audit Bureau to the Public Prosecutor concerning the Telecom Holding Company’s contract with Rawafed, which includes legal violations according to the Bureau’s findings.

Libyan Audit Bureau Warns PM Over Oil Minister’s Accumulation of Multiple Positions

Written by Amira Cherni on . Posted in News. No Comments on Libyan Audit Bureau Warns PM Over Oil Minister’s Accumulation of Multiple Positions

The Libyan Audit Bureau, headed by Khaled Shakshak, has sent an official letter to the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, as part of its oversight responsibilities.

The letter stated that, while monitoring the Ministry of Oil and Gas and companies within the sector, several cases of conflict of interest were identified due to the accumulation of multiple leadership positions (executive, supervisory, and regulatory roles). This, the Bureau noted, undermines the principle of separation of powers and creates overlapping responsibilities.

Among the reported cases is an official holding several positions, including: Acting Minister of Oil and Gas, Undersecretary of the Ministry of Oil and Gas, board member of the National Oil Corporation (Exploration and Production Affairs), former head of the management committee of Waha Oil Company, former head of the management committee of Arabian Gulf Oil Company, and board member of other oil and service companies.

The Bureau emphasized that this situation represents an exceptional case that contradicts good governance standards and leads to an unjustified concentration of both oversight and executive powers, which may negatively affect performance and decision-making independence.

It called for taking the necessary measures to end this situation, correct the legal status, ensure a full separation between sovereign, supervisory, and executive roles, and prevent any future conflicts of interest.

Exclusive: After Dbeibeh’s pressure to reinstate oil swaps… Shakshak warns him: A move that drains the treasury and undermines the path of reform and public tenders

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: After Dbeibeh’s pressure to reinstate oil swaps… Shakshak warns him: A move that drains the treasury and undermines the path of reform and public tenders

Our source has exclusively obtained a letter from the Head of the Libyan Audit Bureau, Khaled Shakshak, addressed to the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, regarding the latter’s letter to the Chairman of the Board of the National Oil Corporation. The letter included a request to halt all procedures related to the public tender for fuel supply and to continue operating under the previously adopted mechanism, with the same quantities as in November 2025, until a comprehensive evaluation of all available options is conducted.
Shakshak explained that the Audit Bureau, in line with its oversight role and based on the findings of follow-up work, identified fundamental observations revealing serious shortcomings and weaknesses in the mechanisms for managing supply contracts. These deficiencies led to unjustified additional burdens on the state budget, constituting waste of public funds. The National Oil Corporation had previously been notified—under letters No. (19/5225) dated 22/09/2025 and No. (19/7174) dated 08/12/2025—of the necessity to take corrective measures in the fuel supply mechanism and procedures, by committing to presenting the matter through a public tender. The Bureau also recommended observing a set of controls and standards to ensure procedural transparency and contracting with the most efficient, qualified, and capable international companies, thereby opening competition and ensuring Libya benefits from obtaining fuel of the required quality at the most appropriate prices.
According to the correspondence, the outcomes of repeated meetings among the concerned entities—including the Public Prosecutor, the Central Bank of Libya, and the National Oil Corporation—confirmed the Audit Bureau’s position and the need to review and update the existing supply mechanisms in line with approved legal standards and frameworks. This includes the necessity for the National Oil Corporation to adopt the public tender method as the optimal and most effective legal and regulatory framework for achieving the public interest, rationalizing expenditure, and preventing exploitation or improper practices.
Shakshak added that the referenced letter represents a deviation from the course previously adopted by the Prime Minister and agreed upon under the auspices of the relevant parties, as well as from the Audit Bureau’s recommendations. It increases the risks of continued unacceptable costs and burdens on the public treasury and delays the deserved path of reform and correction of the current mechanisms and procedures. He noted that all organizational and corrective steps taken had allowed the National Oil Corporation sufficient time to transition from the previous system to a more equitable, transparent, and reliable procedural system that meets requirements of efficiency and economic effectiveness, secures and meets local market needs without waste or excessive costs, and maintains uninterrupted supply flows—within a structured and orderly path that balances institutional reform requirements with genuine local demand.
He further stated that, in accordance with the corrective measures already taken, the National Oil Corporation had begun adopting and implementing the public tender system, announcing the tender, qualifying a number of supply entities and instruments, and comparing offers submitted by companies based on approved requirements and standards, in light of recommendations and the outcomes of the aforementioned meetings. These steps yielded encouraging results and a positive impact in achieving financial savings and limiting corruption practices and fuel smuggling—making it necessary to consolidate efforts to support and complete this path. Reversing or delaying its implementation could risk creating financial or legal obligations and judicial disputes that would affect the integrity and reputation of the Libyan state’s position.
He also said that while the Audit Bureau appreciates the Prime Minister’s concern for the smooth flow of fuel supplies and the stability of the local market, it reiterates its previous warnings and stresses the importance and necessity of adhering to the agreed procedures coordinated among the relevant entities, supporting the agreed-upon path, completing corrective steps through public tenders, and avoiding the risks of continuing to operate under the previously used mechanism.

Audit Bureau: Irregularities at Libya’s Embassy in Bosnia Involving More Than €165,000 and 65.9 Thousand Bosnian Marks

Written by Amira Cherni on . Posted in News. No Comments on Audit Bureau: Irregularities at Libya’s Embassy in Bosnia Involving More Than €165,000 and 65.9 Thousand Bosnian Marks

The Audit Bureau revealed in its 2024 report the existence of irregularities at the Libyan Embassy in Bosnia and Herzegovina. These included the failure to submit revenue and expenditure reports for the financial year to the competent authorities in accordance with the Budget, Accounts, and Stores Regulations, despite correspondence from the Director of the Financial Controllers Department at the Ministry of Foreign Affairs. The report also noted the absence of a dedicated register to track the movement of financial advances (cash advances) disbursed during the financial years under review, in which the amounts, expenditures, and remaining balances should have been recorded. In addition, the financial controller carried out all tasks alone—preparation, review, treasury, and approval of all procedures—based on the documents, as well as disbursing financial advances to himself and completing their settlement procedures. The report also pointed out that some amounts were received by individuals who were not the beneficiaries listed on the payment orders.

The report continued: the self-generated revenues collected by the embassy’s cultural office amounted to 65.9 thousand Bosnian marks, with 11.2 thousand Bosnian marks transferred to the tax revenue account at Sberbank. There was a discrepancy between the statement showing revenue movements prepared by the financial controller and submitted to the Ministry of Foreign Affairs and the detailed revenue values reflected in the bank accounts. The report also found the existence of deposits carried forward in the embassy’s account from previous years, which the embassy disposed of without legal justification and without obtaining the necessary approvals from the competent authorities. Furthermore, an amount of €12.7 thousand was paid to a Bosnian citizen hired to work for the committee and to a locally contracted embassy employee in return for sending him several times to Turkey and Serbia. The head of the inventory committee for the yard area, /N.A., also forwarded correspondence related to renting an office for the committee’s work and charged several fictitious expenses, including equipment, fuel, and heating, which were approved by embassy officials. Below are examples of amounts spent without legal justification.

The report added: upon reviewing payment orders related to renting the committee’s office, it was found that the amount was not paid to the property owner’s account but rather to a committee member, /A.S.B. The monthly rent was €1,800 for a two-year term renewable thereafter. A payment order of €50,000 was issued and paid to a member of the Wounded Committee in the Bosnian field, along with another payment order of €66,500 paid to the head of the Wounded Committee in the Bosnian field, /N.A., for transportation, accommodation, and living expenses in Turkey. It was found that these expenses related to the Turkish field and were not connected to the treatment of the wounded in Bosnia.

The report further noted the failure to attach entry and exit visas and stamps for the concerned individuals to Bosnia, despite the disbursement of accommodation and lodging expenses at the Bristol Hotel amounting to €7,850, which were received by the financial controller, /A.E.S., with no evidence of their delivery to the concerned parties. In addition, an amount of 9,000 Bosnian marks was paid as salaries for teachers at the Libyan school for the month of December, despite the school not having obtained accreditation or an operating license from the Bosnian state and the Ministry of Education, noting that the school has been inactive since 2022.

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

Written by Amira Cherni on . Posted in News. No Comments on 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.

Audit Bureau Report: Inflated Revenues of 48.5 Million LYD, Wasted Millions of Euros, and Illegal Bonuses at Afriqiyah Airways

Written by Amira Cherni on . Posted in News. No Comments on Audit Bureau Report: Inflated Revenues of 48.5 Million LYD, Wasted Millions of Euros, and Illegal Bonuses at Afriqiyah Airways

The Audit Bureau’s report revealed significant financial mismanagement at Afriqiyah Airways, whose capital amounts to 1 billion LYD. The company continued paying the chairman a 10,000 LYD bonus, despite the general assembly approving only 5,000 LYD, alongside a conflict of authority between the board and the general manager, with the board intervening in the general manager’s responsibilities.

The airline contracted Canon to prepare financial statements from 2015 to 2020 at 180,000 LYD per year, but 2015 statements were delayed despite paying 162,000 LYD. Revenues from the Hajj season were inflated by 48.5 million LYD, while actual revenues did not exceed 33 million LYD, and 2.5 million USD remained uncollected. The company violated financial regulations by not depositing all revenues daily into commercial banks, keeping 5.3 million LYD of cargo revenues in company vaults.

The report highlighted excessive cash spending on service providers, including 240,120 LYD in cash for staff travel to Bulgaria for maintenance of aircraft 5-A ONJ, with 27% tax applied directly to beneficiaries. Maintenance of four aircraft was neglected, costing an estimated 4.2 million euros, leaving them grounded for over a year. Meanwhile, administrative, travel, and accommodation expenses expanded, and cargo aircraft 600-A300 underwent 3.858 million euros in maintenance despite being out of service since 2019, later put up for sale in November 2024. An older aircraft was purchased instead of investing in newer planes.

The company rented a building on Omar Al-Mukhtar Street for 210,000 LYD per month, paying 3.7 million LYD for 18 months without benefiting from it. A maintenance contract extension was signed for 8.7 million LYD, with payments made without detailed reporting or supervision.

The report also noted overpayments for tickets, visas (5.3 million LYD), and accommodation allowances (4.9 million LYD), all paid in cash, due to unscheduled missions. European airspace debts (EUROCONTROL) of 3.9 million euros incurred fines of 934,300 euros in 2023–2024. Poor cost management reflected miscoordination between financial, operational, and technical departments. Bonuses of 2,000 LYD were paid to employees for tasks under the Holding Company’s remit, violating regulations.

The chairman signed a contract with a lawyer in Germany to defend against Lufthansa Technik, paying 7,000 USD for 20 hours at 350 euros/hour, without legal department approval, breaching Article 221 of the financial regulations.

Further violations included misuse of the Tunis office, underpaid revenues, payments without receipts in Niger, and improper allowances in foreign currency. Payments for an electronic archiving system (8,000 USD loss) and visa issuance (10,000 USD) were made without guarantees or legal authority. Maintenance delays led to 94,508 euros in fines from TAV.

In Turkey, a bank account in GBP was opened for the Istanbul office to cover London office expenses, despite the London office being closed for years. Salaries and allowances were mismanaged, including 700 USD monthly transport allowance despite providing a car valued at 1.235 million TRY, and 100,000 TRY in cash advances without explanation.

In Saudi Arabia, station expenses of 24.7 million LYD did not match financial management records of 41.5 million LYD. No dedicated bank account existed; operations ran through mixed accounts with other airlines. In Egypt, lounge fees of 35,100 LYD were paid without proper documentation, and reconciliation statements were poorly prepared, causing discrepancies in bank balances, including a 4.5 million EGP discrepancy at Canal Bank.

One Billion Dinars with No Social Impact: Financial and Administrative Irregularities Hit the Social Solidarity Fund and Disrupt Pension Payments

Written by Amira Cherni on . Posted in News. No Comments on One Billion Dinars with No Social Impact: Financial and Administrative Irregularities Hit the Social Solidarity Fund and Disrupt Pension Payments

An Audit Bureau report for 2024 revealed a series of financial and administrative observations and violations at the General Authority of the Social Solidarity Fund. The most notable include delays in preparing the final accounts for the fiscal year under review to date, and the failure to close financial advances granted to employees within the prescribed deadlines.The report explained that the Finance Department charged travel and overnight allowances directly to the foreign travel and accommodation expenses item, instead of routing them through the travel and accommodation allowance advance account, in violation of approved procedures.

According to the data, total authorized allocations amounted to approximately one billion dinars, while expenditures and commitments reached 407.8 million dinars.Total social assistance amounted to 52 million dinars, distributed between cash and in-kind aid. However, the report noted a lack of fairness in distribution among the Authority’s branches, with allocation decisions made solely by the General Administration, and the absence of a central system to register beneficiaries’ data using national ID numbers—potentially leading to duplication or repeated disbursements.

The report also indicated that rental allocations reached two million dinars, against actual expenditures of 1.8 million dinars, with branches relying on renting headquarters, offices, and warehouses instead of purchasing properties or constructing buildings owned by the Authority.In addition, allocations for building equipment reached 35 million dinars, while projects included in the plan amounted to 100 million dinars.The report recorded the purchase of vehicles from the solidarity budget designated for beneficiaries’ needs, which were instead allocated for administrative or personal use, contrary to the objectives of the approved budget.It further showed weak performance by the Projects Department and supporting departments in implementing approved projects, as spending on projects included in the plan did not exceed 15.3 million dinars, compared to allocations of 100 million dinars.

On the revenue side, the report observed a low collection rate of solidarity contributions at just 1%, with negative variances amounting to 14.7 million dinars—equivalent to 13% of total estimated revenues—reflecting a significant shortfall in actual collections.In addition, uncollected revenues related to the basic pension amounted to 155 million dinars, representing the jihad tax due from the Ministry of Finance at a rate of 30%, which negatively affects the Authority’s ability to pay basic pensions to eligible beneficiaries.

Audit Bureau Report: Financial Violations Exceeding 100 Million in Dollars and Dinars at the Libyan Embassy and Consulate in Tunisia

Written by Amira Cherni on . Posted in News. No Comments on Audit Bureau Report: Financial Violations Exceeding 100 Million in Dollars and Dinars at the Libyan Embassy and Consulate in Tunisia

The Audit Bureau report revealed expenditures at the Libyan Embassy in Tunisia, where the embassy approved the disbursement of USD 37.9 thousand as salaries for the period from September to December for a diplomatic employee. It was found that the payments covered a period during which the individual was absent from work, without any justification.

The report added that, pursuant to a payment authorization, an amount of USD 157.5 thousand was paid as salaries for the period from August 2010 to December 31, 2011, to a diplomatic employee. It was noted that there was no evidence that the individual had actually commenced work at the embassy. The total amounts paid to tourism companies and hotels reached 1.4 million Tunisian dinars.

The report also clarified that an amount of USD 192.9 thousand was paid to AFA Aviation Academy, representing settlement of nine invoices from a training deposit for the training of pilots, engineers, and technicians affiliated with the Air Ambulance Services Authority, based on an agreement concluded between the Authority’s Director General and the academy. It was noted that the contract did not specify the currency of payment for the training fees, and it was found that all invoices were paid in foreign currency, although they should have been paid in the local currency, the Tunisian dinar. The opening balance and deposited amounts related to overseas medical treatment debts amounted to TND 107.7 thousand.

The report continued: an advance of approximately TND 8.2 million was disbursed to the medical office for patient treatment, and another advance of approximately TND 10 million to the Emergency Medicine and Support Center. Subsequently, an amount of TND 3.1 million was returned from the Center’s advance. The balance of the medical treatment debt deposit account amounted to TND 286.9 thousand. The value of disbursements that were settled reached approximately TND 64.6 million, while unsettled disbursements paid during 2022–2023 and carried forward to 2024 amounted to LYD 38.1 million. The report also revealed the existence of a transfer deposited into the Emergency Medicine and Support Center’s deposit account, representing an advance from the medical treatment debt deposit in the amount of TND 10 million.

The report added that total expenditures for the wounded treated by the Emergency Medicine and Support Center amounted to TND 22.1 million, and that there were files for a number of wounded patients at certain clinics submitted to the medical office that were not reviewed by the Center—nine files valued at TND 217.1 thousand. The opening balance and deposited amounts in the medical office account for patient treatment amounted to TND 50.5 million, while the total value of payments transferred from the patient treatment deposit to service providers—clinics, pharmacies, and laboratories—reached TND 79.9 million.

The Audit Bureau report also revealed expenditures of the military attaché’s office at the embassy, including the disbursement of USD 50 thousand as an advance from the students’ account (USD), based on a letter from the military attaché, and its conversion into the Tunisian dinar account in the amount equivalent to TND 151.5 thousand. The funds were spent on employee salaries, with the remaining balance returned to the students’ account in Tunisian dinars, and the remaining portion of the advance closed from the Ministry of Defense deposit account (Chapter Two allocations) and transferred to the students’ account in the amount of USD 30.1 thousand, without evidence of obtaining the necessary approvals. Based on a cable issued by the Director of the Treasury Department No. (312) addressed to financial controllers at Libyan embassies in Bulgaria and Tunisia—referencing a letter from the Director General of the Military Medical Services Authority requesting the transfer of a financial deposit related to Al-Bunyan Al-Marsous wounded from Bulgaria to Tunisia in the amount of EUR 1 million—payment authorizations were issued to settle outstanding debts of Al-Bunyan Al-Marsous wounded at several clinics totaling TND 1.054 million.

The report continued: through examination and review, several observations were noted, including the absence of a medical report confirming that the patient was among the wounded of the Al-Bunyan Al-Marsous operation. Upon reviewing the handover report of the Al-Bunyan Al-Marsous deposit between the medical office and the military attaché—between Dr. (A. M. S.) and the embassy’s military attaché (A. A.)—it was found that the debts owed to Sakkara Clinic after discount amounted to approximately TND 181 thousand, while the committee’s report included an amount of TND 136.047 thousand. In addition, invoices related to 2023 were submitted with a value of TND 224,641. Under Payment Authorization No. (1/2), an amount of TND 8,881 was paid to Al-Zahraa Clinic for the treatment of three patients; it was noted that the beneficiaries were classified as wounded and that most of the invoices and accompanying medical documents dated back to 2022, without evidence that they had not been paid during that year. Under Payment Authorization No. (1/3) dated January 24, 2023, an amount of TND 20,054 was paid to Al-Manar Clinic for the treatment of three patients; it was noted that the attachments to the payment authorization were not stamped to indicate disbursement, in violation of Article (105) of the Budget, Accounts, and Warehouses Regulation.

The report added that expenditures from the consulate’s account in Tunisian dinars during the years 2021 to 2023 amounted to TND 9.2 million. The consulate repeatedly purchased fuel coupons from Ajil Company; however, examination revealed that payments were made to the National Oil Distribution Company against its invoices for fueling consulate vehicles. An amount of EUR 12,775 was paid to a Bosnian citizen engaged to work with the committee and employed under a local contract at the embassy, for multiple assignments to Turkey and Serbia—constituting a violation of the law on economic crimes. The head of the Al-Bunyan Al-Marsous Wounded Committee in the field (N. A. A.) forwarded correspondence related to renting an office for the committee’s work and charged several fictitious expenses—equipment, fuel, and heating—for the purpose of disbursement and approval by embassy officials. Payment Authorization No. (12/4) in the amount of EUR 50,000, paid to a member of the Wounded Committee in the Bosnia field (A. B. S.) for travel, accommodation, and subsistence expenses in Turkey, was found to relate to the Turkish field and not to the treatment of wounded in Bosnia. Payment Authorization No. (12/15) in the amount of EUR 66,500, paid to the head of the Wounded Committee in the Bosnia field (N. A. L.) for travel, accommodation, and subsistence expenses in Turkey, was likewise found to pertain to the Turkish field and not to the treatment of wounded in Bosnia.

Audit Bureau 2024: LYD 356 Million in Subsistence Spending Without Oversight, LYD 33.8 Million for Vehicle Credits, and Direct Violations at the Ministry of Defense

Written by Amira Cherni on . Posted in News. No Comments on Audit Bureau 2024: LYD 356 Million in Subsistence Spending Without Oversight, LYD 33.8 Million for Vehicle Credits, and Direct Violations at the Ministry of Defense

The 2024 report of the Audit Bureau revealed a series of financial violations at the Ministry of Defense. Most notably, total spending on subsistence and uniforms for personnel reached approximately LYD 356.1 million. The report observed that financial advances were disbursed to cover subsistence and supply expenses for certain military units and charged directly to the budget line, resulting in weak oversight of disbursement and settlement procedures.

The Bureau noted that total stationery expenditures amounted to LYD 2.2 million, with financial advances issued for the purpose of purchasing stationery and charged directly to the expenditure line.

The report also recorded the execution of a letter of credit totaling LYD 33.8 million allocated for the procurement of a number of vehicles.

Additionally, the Bureau documented the payment of salaries to some members of the Libyan Army without their salaries being received from the Ministry of Finance.

In another aspect, the report revealed the disbursement of financial advances amounting to LYD 99.5 thousand as cash bonuses to 77 members of the Protection Company, in violation of the Chief of the General Staff Decision No. (415) of 2024, which authorized the use of advances exclusively to meet the needs of the General Staff Headquarters.

The report further pointed to the disbursement of additional financial advances totaling LYD 102 thousand, distributed to 57 protection personnel, contrary to the Chief of the General Staff Decision No. (315) of 2024, which limited the use of the amount to covering the needs of the General Staff Headquarters only.