Audit Bureau Report: Lots of violations worth millions of dinars in Libya
Posted – 30th August 2021
The Audit Bureau issued its report covering the financial movement and government expenditures at all levels, from 2012 to 2020.
The report contained wholesale excesses and irregular expenditures in a number of service, educational, and military sectors in the country.
At the governmental level:
Government expenditures amounted to 383 billion dinars during the period between 2012 and 2020, and the expenditures of the interim government amounted to 45.6 billion dinars during the period between 2015 and 2019, according to the report. The total debts of the interim government during the period between 2015 and 2019 exceeded 60 billion dinars.
On the financial and banking level:
The state’s financial deficit amounted to 14 billion dinars in 2020, and the cumulative bank debt until 2020 rose to more than 84 billion dinars. Also, illegal allocations of funds were recorded, including 26 billion dinars loaned by the Central Bank to the Presidential Council headed by Fayez Al-Sarraj, in addition to Al-Sarraj granting the Ministry of Justice an amount of one billion dollars that was not included in the budget, and the Council allocated funds outside the financial arrangements in the amount of 10 billions of dinars.
On the activity of the Central Bank, the report stated that the bank’s board of directors met only once in 2020, in addition to the bank’s closing of the clearing system for banks in the eastern region, which upset the balance of balances between bank branches. Also, the Central Bank granted loans to some banks for no apparent reason despite having a legal reserve. The bank also recorded a failure to switch to the electronic clearing system due to its inability to standardize banking systems.
The report also indicated an increase in the volume of currency in circulation to 40 billion dinars during 2020, and a decrease in the balance of paper currency stored in the Central Bank in 2020 by 22%. In addition, there is no plan from the Central Bank to expand electronic services.
The Central Bank also placed a deposit in the Central Bank of Turkey and Ziraat Bank worth two billion euros without being bound by the ceilings of large sums, and the Turkish Cengiz Company seized funds belonging to the Central Bank with a value of more than 404 million Turkish liras. The Central Bank also invested in 47 bonds in various currencies worth $8.5 billion without any credit rating.
On the educational level:
The cost of opening the Bani Walid Education Monitoring reached 100,000 dinars, without a technical report stating the monitoring needs.
The value of the allocations for contracts with a conciliatory mandate exceeded the amount of 1989410 dinars, and the value of projects for the construction and maintenance of mobile classrooms amounted to 73,219,398 dinars for 99 projects, and most of the projects were not implemented despite the completed technical achievement.
There was also a lack of some credit documents, including the award minutes and the letter of guarantee. Also, no members of the Curriculum Center were registered in the Bidding Committee for the supply of books, and no contracts were concluded between the two parties to the contract to evade giving the state the right to pay tax payments.
The maintenance value of the Ministry of Education’s office building amounted to 475310 dinars for the Ice Summit Company. 42 cars belonging to the ministry were also stolen, while 42 cars were kept with people whose job relationship with the ministry ended. Housing was provided to people in violation of the decisions of the Prime Minister and the Minister of Finance.
The operational budget disbursement rate reached 99%, with a value of 26 million and 800 thousand dinars. In addition, the Ministry of Education delivered more than one car to the same person.
On the military level:
The report showed that there was no clear intention by the Ministry of Defense to activate the army and collect weapons. According to the report, the Ministry of Defense expanded spending on the budget prior to the closing of the fiscal year in order to exhaust it. It also did not refer the taxes owed on it to the state.
The “Defense of Accord” deliberately did not issue authorizations to the Chief of Staff, which made it difficult to review expenses, and the Chief of Staff did not prepare the final account for 2020, in an explicit violation of the state’s financial system.
On the other hand, the Chief of Staff allocated cars to military personnel in violation of applicable laws, and 145 military vehicles were supplied without registering their data in the Military Vehicles Department, which makes it difficult to monitor them. The total amount spent by the Chief of Staff on the subsistence item by direct assignment amounted to more than 3 million dinars, in clear violation of the laws.
On the health front:
The total amount liquefied to confront Coronavirus amounted to 1,575,257,817 dinars until 31/12/2020, and the amount liquefied by the Ministry of Health to confront Coronavirus until the end of July of this year reached 8,524,49178 dinars.
According to the report, the government’s decision to exempt the Ministry of Health and Military Medicine from the list of administrative contracts in the face of the Coronavirus pandemic contributed to the increase in prices. Transfers related to the Corona pandemic were recorded, transferred from the Finance to the Libyan Consulate in Turkey, in the amount of 250,555,537 dinars.
On the agricultural front:
The total remittances and expenditures of the Ministry of Agriculture, Livestock and Marine Resources amounted to one million and 193 thousand and 790 dinars.
On the tourism front:
The Tourism Authority was subjected to theft and forgery of some instruments related to salaries and the transfer of funds from its account. The report indicated that the Authority’s financial controller does not stamp some exchange permissions.
The Authority’s revenues amounted to 42,161 dinars, while the estimated revenues, according to the financial arrangements, were 150,000 dinars. The authority did not prepare the final account and the last account transferred to the Ministry of Finance for the fiscal year 2019.
According to the report, the costs of fuel used to produce electric power, especially light fuels, increased.
The Libyan Fund for Internal Investment and Development lacked a vision and strategic goals, in accordance with the purposes specified in the decision to establish it.
The Economic and Social Development Fund liquidated a number of investment portfolios, in exchange for a loan from the Libyan Investment Authority, worth $500 million.
The total loans granted to the fund’s subsidiaries amounted to $90 million.
The value of the financial mandates in favor of the Ministry of Finance’s office amounted to 26.629 million dinars.
1.219 million dinars were disbursed from the subsidies and grants item at the Ministry of Finance.
The Ministry of Finance spent 16,500 dinars for the purchase of alcohol and masks.
The Ministry of Finance spent 2.406 million on travel and accommodation.
The commitments of the Ministry of Finance’s office amounted to 179,000 for catering and cafés.
The commitments of the Ministry of Finance’s office amounted to 145,000 cleanliness.
The commitments of the Ministry of Finance’s office amounted to 745,000 travel expenses.
Previous budget accounts with deposit and withdrawal movements were revealed for the period from January to December 2020.
The total difference between the employee payrolls transferred between the budget department and the treasury is 2.699 billion, the difference between the value of salaries approved in the public treasury report is 168 million dinars.
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