Tag: audit bureau

With only one day left before the curtain falls on 2026, questions are mounting about the fate of the year and the economic and financial conditions it has produced amid a series of accumulated challenges. This year came as an extension of a phase marked by clear contradictions—most notably Parliament’s approval, on the last day of 2025, of a three-year development budget worth 69 billion, coinciding with a decline in revenues transferred to the Central Bank, continued pressure on the exchange rate, and what the Audit Bureau’s report revealed of violations and financial crimes.

Between development ambitions, the reality of economic indicators, and the future of exchange companies and the exchange rate, 2026 finds itself surrounded by legitimate questions about implementation levels, the ability to achieve financial stability, and the impact of adopted policies on citizens’ lives and the macroeconomy. This opens the door to a calm analytical reading grounded in facts and expert assessments, away from exaggeration or justification.

The Head of the Audit Bureau, Khaled Shakshak, told Sada Economic that the country’s economic situation is poor and concerning, and that the deficit persists at both local and foreign currency revenue levels amid rising risks. He stressed that the solution lies in unifying the authorities responsible for managing public funds, unifying the budget, ensuring accountability, and addressing the political impasse. He recommended consensus and institutional unification so there is a single authority, a unified budget, real oversight, and transparency—outcomes that can only be achieved through unifying authorities.

For his part, Abdulbasit Al-Jaboua, Director of the General Administration for Oversight of the Energy Sector and Public Companies, told Sada exclusively that the main reason behind the country’s economic situation is deteriorating conditions and instability in the Libyan dinar’s exchange rate. This is due to the scale of spending during 2024 and 2025, in both eastern and western regions. Spending exceeded collected revenues, placing significant pressure on the Central Bank regarding foreign currency, affecting the balance of payments and resulting in a deficit detailed in the Audit Bureau’s report.

Meanwhile, Abu Bakr Abu Al-Qasim, Head of the Accounting Department at the Libyan Academy, said the Libyan economy entered 2025 under increasing pressure—most notably a widening budget deficit and a persistent balance-of-payments imbalance—amid high and uncontrolled public spending, weak revenue collection including from the oil sector, and rampant corruption alongside weak performance by oversight institutions. These conditions directly affected citizens’ lives, contributing to higher inflation and erosion of purchasing power.

He added that the Libyan dinar faces ongoing pressure against foreign currencies due to rising demand for foreign exchange to finance imports and declining confidence in economic policies, pushing up dollar prices and the cost of basic goods and services. With limited policy tools, the citizen has become the weakest link in the financial and monetary imbalance.

These challenges are compounded by continued institutional fragmentation and multiple decision centers, weakening coordination between fiscal and monetary policies and delaying real reforms to address the twin deficits—costs borne by citizens through inflation. As 2026 approaches, serious questions arise about the economy’s ability to curb inflation, protect the national currency’s value, and restore a minimum level of economic and living stability. In the short term, this requires urgent measures, foremost among them: curbing runaway spending and agreeing on a single national budget within available revenue ceilings; improving governance of public revenues, especially the oil sector; activating oversight bodies to combat entrenched corruption; harmonizing economic policies across trade, fiscal, and monetary fronts; and reforming fuel subsidies that consume more than 30% of the budget.

Abu Al-Qasim concluded that continued financial and economic mismanagement—as in 2025 and prior years—will inevitably worsen conditions in 2026, with citizens once again paying the price.

Economic expert Suleiman Al-Shahoumi said 2025 was a year when the truth about Libya’s economic and monetary situation became fully apparent, marked by unprecedented runaway spending and legislative indifference to regulating public expenditure through a unified legal framework. He cited the so-called public debt law setting debt above 300 billion without scrutiny, shrinking oil revenues, loss and opacity of oil data, and a central bank that proved not truly unified and bears responsibility for today’s severe liquidity crisis.

He added that oversight institutions have failed in their roles, with unprecedented waste of public funds and corruption in contracting. Demand for dollars surged, fueled by the liquidity crunch and market distortions, while the Central Bank’s isolated actions and erratic monetary policies—amid loss of effective tools like interest rates—failed to improve conditions. He called for comprehensive restructuring of spending, fiscal tools (including tax and customs reform), and capable monetary policies to manage liquidity.

Mohamed Al-Senussi said 2025 was economically disastrous, with oil revenues not fully transferred to the Central Bank despite claims that barter had stopped—when it continues in other forms. Dual spending without a budget persists, explaining deficits in Central Bank data. He stressed that fiscal policy drives the real economy in Libya and that monetary policy should support it, not firefight its failures. He warned 2026 would be worse without unified budgeting, full revenue transfers, adequate liquidity provision, and exchange-rate adjustment to meet demand. He proposed quick fixes—exchange-rate adjustment, adequate liquidity, lower e-payment fees—and political solutions, including a single government, unified budget, and anti-corruption measures.

Businessman Hosni B. said Libya’s economy, despite vast oil resources, remains on the brink of unsustainability due to soaring spending, falling oil prices, persistent liquidity crisis, and a flawed economic model. He estimated public spending exceeding 230 billion dinars in 2025, a revenue-expenditure gap over 30 billion, and reliance on foreign-currency sales and reserves—weakening the state’s medium- and long-term position. He argued the liquidity crisis is one of trust, not money scarcity, and criticized the fixed exchange-rate policy for fueling speculation, parallel markets, hoarding, and liquidity stress. He called for flexible exchange rates, unified fiscal and monetary decisions, spending rationalization, private-sector empowerment, transparency, and redefining the state’s role.

Former Central Bank board member Murajeh Ghaith said 2025 was marked by inflation, higher prices, and chronic liquidity shortages. He urged rationalizing dollar use toward productive ends, approving a unified budget, controlling spending, and monitoring foreign-currency use. Without these, no improvement is possible in 2026.

Economist Mohamed Al-Barghouthi said 2025 was fragile rather than collapsed—temporary stability masking deep structural imbalances. Oil revenues exist but fail to translate into durable exchange-rate stability or purchasing-power gains due to weak management, lack of transparency, delayed revenue collection, and political interference. He warned that continued high spending and delayed reforms could renew pressure on the exchange rate and inflation in 2026, while genuine reforms—depoliticizing the economy, improving revenue governance, and restructuring toward production—could preserve and gradually improve stability.

Finally, economist Mohamed Al-Rafadi said Libya’s reported growth—around 13%—is fragile and misleading, driven by oil prices and stable production rather than real performance. Chronic fiscal deficits, political division, poor resource management, uncoordinated fiscal and monetary policies, and politicization of economic tools persist. True assessment lies in living standards, which continue to deteriorate. Without deep treatment, he warned of inevitable economic collapse, stressing that the crisis is fundamentally political and that recovery requires insulating the economy from political conflict and building competent, independent economic management.

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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.