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Libyan government freeze transactions of investment funds to tackle corruption

The new unity government introduced a blanket freeze to all transactions across Libya's public funds and investment portfolios except those related to paying staff salary.

 |  Libya Times Editor  |  Business
libyan audit bureau

The new unity government introduced a blanket freeze to all transactions across Libya's public funds and investment portfolios except those related to paying staff salary.

On Saturday, prime minister Abdulhamid al-Dubaiba, issued decree No 1 for the year 2021 instructing all state-owned companies and investment funds to stop all their financial dealings “to ensure the avoidance of suspected corruption”.

The move comes a few days after an annual report by the Audit Bureau which detailed widespread mismanagement and corruption within Libya’s public sector.

Dubaiba’s decree is expected to affect controversial contracts involving the country’s main investment bodies and sovereign funds which the Audit Bureau report had accused of mismanagement and lack of transparency.

The 900-page report contained lengthy detailed examples on mismanagement and lack of transparency within the Libyan Investment Authority (LIA), Libya’s sovereign investment fund, which the report said it had spent USD58,364,119 million between 2017 and 2018 on running costs without generating any revenues. It also revealed how members of the LIA management board were illegally receiving multiple salaries by holding several simultaneous management positions in LIA's overseas subsidiaries.  


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