Libya Ends Oil-for-Fuel Barter System Amid Corruption Concerns
High-level Libyan officials have held crucial discussions regarding the termination of the controversial oil-for-fuel barter system, focusing on its implications for public spending and state fund allocation. Attorney General Al-Siddiq Al-Sour, Central Bank Governor Nagy Issa, and National Oil Corporation Chairman Masoud Suleiman met to address the system’s impact on financial regularity and proper resource management.
The National Oil Corporation confirmed earlier this year that it would discontinue the barter system for fuel imports starting in March, following recommendations from the Audit Bureau. The decision comes after the Bureau’s 2023 annual report criticized the NOC for contracting with newly established and inexperienced intermediary companies instead of dealing directly with established major firms.
The Audit Bureau’s report highlighted significant concerns about these intermediary arrangements, noting that many companies failed to meet required criteria and that their involvement resulted in violations and losses potentially amounting to corruption. The Bureau specifically recommended ending the barter system by the beginning of 2025 to prevent further financial irregularities.
However, the NOC has emphasized the need for alternative funding mechanisms, noting that delays in budget disbursement by the Central Bank and Ministry of Finance were primary factors that led to the barter system’s adoption. The corporation has called for provision of necessary budgets to ensure continuity of fuel supply operations following the system’s termination.
Source: libyaobserver.ly