In response to mounting allegations of widespread mismanagement within Libya’s National Oil Corporation (NOC), Libyan authorities have announced plans for a comprehensive investigation. The probe, to be initiated this week by Mohamed al-Menfi, Chairman of the presidential council, aims to address concerns of financial mismanagement within the oil sector.
Authorities assert that the alleged mismanagement is not only an internal matter but also fuels conflicts in neighboring Sudan.
These claims were highlighted in a recent report submitted to the UN Security Council that rampant smuggling allegedly facilitated by the NOC, supplies fuel to paramilitary forces engaged in the Sudanese civil war.
Despite Libya’s substantial oil wealth, the country relies heavily on fuel imports at outrageous rate due to insufficient domestic refining capacity, which has led to substantial losses, with up to 40% of imported fuel being smuggled out of the country for profit.
The investigation comes amidst political fragmentation and economic challenges in Libya since the ousting of Muammar Gaddafi in 2011.
Efforts to establish a unified government in Libya have repeatedly failed, with recent disputes between key figures such as the central bank governor and the prime minister further raising the tensions.
The outcome of the investigation is expected to shed light on the extent of mismanagement within the oil sector and pave the way for reforms essential for Libya’s socio-economic recovery.
By xamse
March 25, 2024
