A report issued by the US State Department revealed that financial transparency in Libya deteriorated during 2024, blaming internal political divisions that hinder the implementation of regular budget operations.
The report stated that the Government of National Unity did not publish a proposal for the executive budget during the year, and that the funds were spent without parliamentary approval or any oversight bodies.
The American report also pointed out the lack of clarity about the source of the funds spent by the government assigned by the House of Representatives in the east of the country, which was able to spend them without supervision or coordination with the Tripoli authorities, according to the report.
In terms of financial transparency, the report noted that the end-of-year budget implementation report was not published, and that information on debt obligations, including those of key state-owned enterprises, was not made available to the public.
The report noted a lack of transparency in natural resource extraction tenders, as these were generally not awarded through a competitive and open process, and information about them was not publicly available.
The report also criticised the lack of a legal framework for Libya’s “sovereign wealth fund”, and its failure to issue public financial statements or a report on its investment strategy.
The report called for steps to enhance financial transparency, including publishing budget documents in accordance with international standards, disclosing information on debt obligations, subjecting military and intelligence budgets to public oversight, and ensuring the independence of the Supreme Audit Institution.
In response to the report, the US Embassy in Libya confirmed its continued urging of Libyan leaders to ensure that public funds are spent in a transparent and accountable manner, stressing that this step has become more urgent than ever, in light of the current crisis in the Central Bank.
Source: US Department of State.
2024-09-21 14:51:58