Skip to main content

Tag: audit bureau

Demanding a Budget of $750 Million: The National Oil Corporation Responds to the Audit Bureau’s Request to Halt the Fuel Barter System Starting in 2025

Written by Amira Cherni on . Posted in News. No Comments on Demanding a Budget of $750 Million: The National Oil Corporation Responds to the Audit Bureau’s Request to Halt the Fuel Barter System Starting in 2025

Our source has exclusively obtained correspondence from the National Oil Corporation (NOC) addressed to the Chairman of the Libyan Audit Bureau. In this correspondence, the NOC responded to the Audit Bureau’s request to stop using the fuel barter system beginning in 2025, explaining the difficulties in ceasing this system.

The NOC stated that references to alleged legal violations related to the barter system may not accurately reflect reality. The resort to this system was driven by the need to ensure the continuous operation of critical facilities and avoid their collapse. This situation arose due to the failure of the Central Bank of Libya and the Ministry of Finance to release budgets on time without providing any legal justifications. The NOC had previously provided detailed explanations regarding the consequences of these delays through official correspondence. However, the disregard of these communications and the lack of necessary measures by the relevant authorities forced the NOC to propose temporary solutions to guarantee the continuity of essential facilities. All these temporary proposals were approved by the country’s executive authority (the Council of Ministers).

The NOC continued by stating that deeming these solutions illegal without considering the context that led to their adoption is an unfair assessment. Therefore, it emphasized the importance of adopting a broader and more comprehensive perspective in addressing all aspects of this critical issue.

Regarding the monthly financial requirements for fuel, the NOC stressed the need for a flexible budget for this category. As mentioned in all previous official correspondences, determining financial needs depends on the stability of oil and fuel prices, as well as the efficiency of operations at the Zawiya Refinery and the continuous flow of natural gas. This ensures reliance on liquid fuel is avoided. According to current indicators, monthly requirements are estimated at approximately $750 million, including gas supply costs of about $100 million per month, which are also settled in kind for Waha partners and Eni to cover the shortfall in gas production designated for power plants.

The NOC explained that current supply contracts aim to transition from the barter system to payment via letters of credit. Therefore, it is crucial to secure regular financial allocations to meet the country’s monthly fuel needs. Suppliers will be notified to activate the payment option through letters of credit. However, given the practical realities, it is difficult to stop the payment for fuel through the barter system from crude oil and product export invoices starting January 1, 2025. For example, the December supply operations are allocated under the same barter system, and this also applies to the needs for February.

The NOC proposed continuing with the barter system until the Central Bank of Libya achieves readiness and the commercial management prepares the appropriate credit mechanism acceptable to banks and suppliers. This would prevent any disruptions in securing local market fuel needs on schedule.

The NOC added that regarding the opening of a special bank account for fuel in coordination with the Central Bank of Libya, the bank governor has been addressed, and the account will be opened with all necessary arrangements to ensure the successful and smooth implementation of the new system. It emphasized that previous experiences have proven the Central Bank and Ministry of Finance lack the required flexibility in securing financial allocations on time, which leads to disruptions that halt critical facilities in the country.

The NOC also recommended reverting to the barter system if scheduled shipments or additional shipments are disrupted due to the shutdown of the Zawiya Refinery, fluctuating natural gas production, or force majeure events. The NOC suggested returning to letters of credit once the bank account is replenished. This flexibility is necessary to avoid interruptions in the supply of electricity generation stations, water desalination plants, strategic factories, and fuel distribution stations.

Exclusive: Allegations of Corruption and Money Laundering Among the Violations Uncovered by the Audit Bureau at Al-Wafa Bank and Referred to the Prosecutor

Written by Amira Cherni on . Posted in Corruption Files, News. No Comments on Exclusive: Allegations of Corruption and Money Laundering Among the Violations Uncovered by the Audit Bureau at Al-Wafa Bank and Referred to the Prosecutor

Our source has exclusively obtained a report from the Audit Bureau addressed to the Attorney General, detailing violations at Al-Wafa Bank involving documents, names, and numbers that suggest corruption and money laundering.

The documents reveal major violations and suspicions regarding the use of funds at Al-Wafa Bank, leading to the referral of responsible parties for investigation. They also disclose that some imported goods received through Misrata Port were not delivered to the country.

The report highlights the details of letters of credit issued to Al-Daleel Financial Company via Al-Wafa Bank’s branch, showing that the company obtained nine letters of credit amounting to a total of 80.712 million LYD, equivalent to $17.5 million.

According to the report’s findings, the bank branch executed the credits on December 13, 2022, deducting 9,336,860,000 LYD from the company’s account. The funds were returned to the account two days later, on December 15 of the same year, and were used to open a new credit, in violation of a Central Bank of Libya circular. Furthermore, the bank branch allowed the return of the previously deducted funds to the company’s account for the purpose of opening new credits, even though these funds belonged to the bank’s general administration.

The report also notes an incident on July 26, 2021, where a credit value of 2,048,692,000 LYD was deducted from the company’s account, and by August 4, 2021, the full amount was returned without any request from the company to cancel the credit. A data entry employee falsely recorded the transaction in the company’s account statement under “credit cancellation” to mislead auditors into believing the return was based on a customer request, which was untrue.

The Audit Bureau’s report referred to the Public Prosecutor’s Office includes recommendations to investigate the following individuals:

  • Abdulati Al-Tayeb, General Manager of Al-Wafa Bank
  • Al-Hadi Dhiyaf, Deputy Director of Banking Operations and External Relations
  • Mohamed Al-Kabir, Manager of the Bank’s Main Branch
  • Abdelhamid Qaddad, Head of Letters of Credit Department at the branch
  • Wissam Al-Tarifi, General Manager of Al-Daleel Company

The recommendations also call for forming a committee to review the legal files of exporting companies supplying goods via Al-Wafa Bank’s branch, to identify the board members of these companies. Examples include “Forever Trade General Company” and “Diamond Stars Trading for Plastic and Nylon Materials,” headquartered in the UAE, to establish potential links between the owners of exporting and importing companies.

The report cites Al-Mutawakkil Company, one of the exporters, where a shareholder, Suleiman Omar Aqil, a Libyan national, owns 49% of the company’s capital.

Exclusive: Following Instructions from Saleh and Dbeibeh to Recognize Shakshak as Audit Bureau Chief, Parliament Annuls Al-Saaiti’s Continuation in Office

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: Following Instructions from Saleh and Dbeibeh to Recognize Shakshak as Audit Bureau Chief, Parliament Annuls Al-Saaiti’s Continuation in Office

Our source has obtained a directive from the House of Representatives to several public entities, nullifying the ruling that allowed Al-Saaiti to continue as Deputy Head of the Audit Bureau.

The Speaker of the House of Representatives recently reaffirmed the decision to maintain Khalid Shakshak as the head of the Audit Bureau.

Additionally, the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, has issued a circular instructing officials under his government to continue recognizing Khalid Shakshak as the Audit Bureau’s chief.

Exclusive: South Tripoli Court Rules to Remove Shakshak’s Authority, Legal Administration Halts Execution of the Ruling

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: South Tripoli Court Rules to Remove Shakshak’s Authority, Legal Administration Halts Execution of the Ruling

Our source has exclusively obtained correspondence from the Deputy of the Audit Bureau addressed to several officials within the bureau regarding the ruling of the South Tripoli Primary Court.

Al-Saiti formed a committee to carry out procedures for receiving the responsibilities held by Khaled Shakshak, closing the outgoing register, and shutting down the decision system under his authority. This follows the South Tripoli Court’s ruling to suspend him from duty and remove his official capacity.

In turn, the Legal Administration addressed the Audit Bureau, instructing the suspension of the enforcement of the administrative order issued against the Audit Bureau head, Khaled Shakshak, pending a session at the Tripoli Court of Appeal scheduled for February 2025.

Exclusive: The Legal Advisor: “An Administrative Correspondence Cannot Be Used by the Audit Bureau’s Representative to Enforce a Judicial Ruling or Order”

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: The Legal Advisor: “An Administrative Correspondence Cannot Be Used by the Audit Bureau’s Representative to Enforce a Judicial Ruling or Order”

The legal advisor, Hisham Al-Harati, stated exclusively to our source: “The Audit Bureau’s representative or any administrative employee is not permitted to enforce a judicial ruling or order through an administrative correspondence.”

He added: “The enforcement of judicial rulings and orders is exclusively carried out by bailiffs in accordance with the procedures outlined in the Libyan Code of Civil Procedure. This cannot be done through administrative directives. Any action contrary to this constitutes an overreach of administrative employees’ authority and violates the provisions of Article 365 of the Libyan Code of Civil Procedure, which stipulates that enforcement must be conducted by bailiffs based on the request of the benefiting party or their legal representative.”

He further clarified: “Therefore, this responsibility does not fall within the duties of an administrative employee. Hence, administrative correspondences issued by the Audit Bureau’s representative or any administrative body do not constitute a lawful means to enforce judicial rulings. Any action undertaken in this manner is a clear violation of the Libyan Code of Civil Procedure and exposes the violator to legal accountability.”

Exclusive: President of the Holy Quran Institution Addresses the Audit Bureau Deputy Head Regarding Unlawful Interventions by Shakshak

Written by Amira Cherni on . Posted in Corruption Files, News. No Comments on Exclusive: President of the Holy Quran Institution Addresses the Audit Bureau Deputy Head Regarding Unlawful Interventions by Shakshak

Our sourcce has exclusively obtained a letter sent to the Deputy Head of the Audit Bureau from the President of the Holy Quran Institution, detailing what he describes as “unlawful interventions” made by the head of the Audit Bureau, Khaled Shakshak, in the affairs of the Complex.

The letter highlights, among other matters, Shakshak’s request to cover millions in financial expenses and charge them to the Complex’s budget. The President of the Quran Complex urged the Deputy Head of the Audit Bureau to address the consequences of such actions.

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

Written by Amira Cherni on . Posted in Corruption Files, News. No Comments on 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

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.

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

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: Despite the Audit Bureau’s Rejection, the National Oil Corporation Agrees to Settlement with Company Accused of Supplying Contaminated Gasoline to Libya

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?”

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

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

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.

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

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

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.”

Exclusive: Commenting on the Central Bank’s Correspondence with the Audit Bureau, Husni Bey: “It’s Just a Storm in a Teacup, and the Bank Is Trying to Comply and Mitigate Risks”, Saying: “The Fault Lies with Us”

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: Commenting on the Central Bank’s Correspondence with the Audit Bureau, Husni Bey: “It’s Just a Storm in a Teacup, and the Bank Is Trying to Comply and Mitigate Risks”, Saying: “The Fault Lies with Us”

Libyan businessman Husni Bey stated exclusively to our source: “What is being circulated about the Central Bank’s request to the Audit Bureau is nothing more than a ‘storm in a teacup.'”

He continued: “The Federal Reserve has not suspended any transactions related to Libya, nor has it threatened any immediate or urgent suspension. All it requires is an independent auditing office to conduct post-transaction reviews and monitor the use of Libya’s dollars by Libyan banks and the Central Bank in terms of transparency and combating money laundering and illicit activities.”

Bey added: “The requested measure is merely formal, natural, and objective—especially in a country like Libya, where the parallel market, speculation, and trade outside the banking system through personal cards and cash account for approximately 50% of the economic activity.”

He explained: “The U.S. Federal Reserve’s concerns stem from institutional division, deficit spending, the absence of an approved budget, and the lack of consensus on financial arrangements. This is compounded by allegations of undisclosed public funding sources, oil-for-fuel barter agreements, fuel smuggling, and other irregularities highlighted in the Audit Bureau’s reports. Fuel smuggling, which has become a contentious activity due to price disparities exceeding 3,000%, exacerbates these issues.”

Bey concluded: “We must admit that the fault lies with us. We need to work on unifying the budget or agreeing on financial arrangements, while also taking decisions to limit cash transactions—even criminalizing cash dealings above a certain amount, such as 50,000 dinars.”

He wrapped up his remarks by reiterating: “It is a storm in a teacup, and the Central Bank, through its correspondence with the Audit Bureau, is trying to comply with the request and reduce concerns and risks.”

Exclusive: The Audit Bureau’s Deputy Director Refers a Notice from a Citizen Regarding the Disqualification of Shakshak as Head of the Bureau… Legal Department Responds by Declaring Its Lack of Value

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: The Audit Bureau’s Deputy Director Refers a Notice from a Citizen Regarding the Disqualification of Shakshak as Head of the Bureau… Legal Department Responds by Declaring Its Lack of Value

Our source has obtained a notice referred by the Deputy Director of the Audit Bureau, Atiyat-Allah Abdulkareem, to the Bureau’s Legal Affairs Office. The notice was received by a process server from an unidentified citizen, who claims that Khaled Shakshak is no longer the Head of the Audit Bureau. The citizen bases this claim on rulings issued by the Tripoli Court of Appeals.

In response, the Legal Affairs Office stated that this notice holds no value and has no basis in reality or law, noting that the rulings mentioned had been overturned and annulled by the Supreme Court.

The Bureau’s Legal Affairs Office confirmed that the legitimacy of its head is derived from rulings by the Constitutional and Administrative Divisions of the Supreme Court, as well as decisions from both the House of Representatives and the State Council, which extended his term as head of the Bureau according to the provisions of the Political Agreement.

Exclusive: The Deputy Head of the Audit Bureau Directs Correspondence for Financial Allocation Distribution on Projects and Halts Payments Until Required Data is Submitted

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: The Deputy Head of the Audit Bureau Directs Correspondence for Financial Allocation Distribution on Projects and Halts Payments Until Required Data is Submitted

Our source exclusively obtained a correspondence from the Deputy Head of the Audit Bureau, Atiyyat-Allah Hussein Abdel Karim, addressed to the Minister of Planning in charge of the National Unit, directing the preparation of detailed schedules outlining the financial allocation distributions for projects and development programs for the years 2024-2025.

The schedules should include priorities, required resources, and implementation timelines before financial authorizations and payment orders related to these allocations are issued. The letter also requests that the Governor of the Central Bank of Libya and the Minister of Finance refrain from taking any action, allocation, or payment from the third account (development) until the Bureau is provided with evidence of the resolution of the issues raised in the Bureau’s report and the required data.

Exclusive: Audit Bureau Deputy Demands Suspension of $6.8 Million Martyrs’ Square Development Project

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: Audit Bureau Deputy Demands Suspension of $6.8 Million Martyrs’ Square Development Project

Our source has exclusively obtained a letter from the Deputy of the Audit Bureau, Attia Allah Hussein Abdul Kareem, addressed to the Chairman of the National Oil Corporation (NOC).

In the correspondence, the Deputy requested the suspension of the direct-award contract for the Martyrs’ Square development and modification project, valued at $6.85 million. The suspension is to remain in effect until the relevant departments of the Audit Bureau complete their review of the contract’s legality.

The Deputy also emphasized the need to fulfill architectural and technical requirements for such a project, given its significant impact on the center of Tripoli. He argued that decisions concerning such a critical area cannot be made through this procedural approach.

Exclusive: Directing Correspondence to Dbeibeh and His Government Entities, Shakshak Reveals Misuse of Unclaimed Basic Salaries

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: Directing Correspondence to Dbeibeh and His Government Entities, Shakshak Reveals Misuse of Unclaimed Basic Salaries

Our source has exclusively obtained a letter from the head of the Audit Bureau, Khaled Shakshak, addressed to the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, and affiliated government entities.

Shakshak revealed instances where unclaimed basic salaries were redirected to other expenditures in violation of the Financial System Law and the Budget, Accounts, and Stores Regulations. This was discovered through the Bureau’s tracking of spending movements under the basic salaries category.

In his correspondence to Dbeibeh and the relevant entities, Shakshak emphasized that some entities funded by the public treasury failed to comply with the procedure of transferring unclaimed salaries—those not collected by their rightful recipients during the month—to the deposits and trust account within the legally specified timeframe.

Shakshak stressed that, in the interest of public welfare, all entities funded by the public treasury must adhere to Article 136 of the Budget, Accounts, and Stores Regulations, ensuring that unclaimed salaries are recorded in the deposits and trust account in favor of their rightful owners.