The Central Bank of Libya (CBL) has resumed its operations as of August 18, 2024, following the release of Musab Emsalem, the Director of the Information Technology Department, who was kidnapped earlier that day. The bank had suspended all operations in response to the kidnapping, condemning the act and expressing concern over threats against other officials. In light of these events, CBL Governor Al-Siddiq Al-Kabir held discussions with US envoy Richard Norland, who reaffirmed US support for the CBL and condemned any attempts to forcibly change its leadership. This incident highlights ongoing security challenges in Libya, which have been exacerbated by recent political instability. [008b5504]
In a related development, the Chairman of the Administrative Control Authority in Libya, Abdullah Qadirbuh, has suspended the Chairman of the Board of Directors of the General Rapid Transport Company from work. This decision was made for public interest reasons and requirements, in accordance with Article 31 of Law No. 20 of 2013 AD. The Administrative Control Authority has been active in making such suspension decisions since the beginning of 2024, indicating a broader effort to address governance issues within state institutions. [8440904a]
Adding to the complexities, the US State Department stated on August 31, 2024, that confusion over the leadership of the CBL has led to uncertainty, prompting US and international banks to reassess their relationships with the CBL. The statement emphasized the need for Libyan actors to maintain the CBL's credibility and find a solution to avoid further damage to its reputation. The UN Security Council called on August 28 for urgent cooperation among Libyan actors to restore competent leadership at the CBL. The Presidential Council's decision to appoint Mohammed Al-Shukri as Governor of the CBL has been contentious, with ongoing disruptions affecting the Libyan economy. [fb06f899]
On September 21, 2024, the US embassy in Libya issued a statement urging Libyan leaders to ensure transparent and accountable spending of public funds. This call for fiscal transparency followed the US State Department's 2024 fiscal transparency report, which highlighted Libya's failure to meet minimum transparency standards. The embassy emphasized the need for a fair distribution of oil revenues, a unified budget, and public disclosure of revenue usage amid the ongoing crisis at the CBL. The report also noted that recommendations from the Financial Oversight Authority were not fully implemented, and contracts for natural resource extraction were not awarded through competitive bids. This statement reflects the US's ongoing commitment to promoting financial stability and transparency in Libya. [387e8fb4]
The Libyan Ministry of Foreign Affairs welcomed the US State Department's statement regarding the CBL, viewing it as a positive step towards unifying and reforming the institution. The Ministry emphasized the US's commitment to financial stability and transparency in Libyan institutions, acknowledging the need for scrutiny of financial transactions during transitional phases. The Ministry expressed confidence in the US dollar and aspirations for enhanced bilateral cooperation with the US, reflecting a desire for stability amid the ongoing leadership crisis. [9f2f33eb]