Libya’s financial feud escalates as PM accuses rivals of sabotage​​​​​​​​​​​​​​​​

Libya’s Prime Minister Abdul Hamid Dbeibah has blamed House of Representatives Speaker Aguila Saleh, Central Bank Deputy Governor Marai al-Barasi, and Belqasim Haftar for approving controversial expenditures recently exposed by the Central Bank.

In a strongly worded statement during a government meeting, Dbeibah called on these officials to “stop waging war against the Libyan state” through their attacks on the Government of National Unity (GNU). He claimed former currency dealers were behind recent protests, allegedly seeking to regain privileged access to hard currency.

“These protests aren’t spontaneous – they’re orchestrated by those who benefited from the old system,” Dbeibah said.

Central Bank Revelations Spark Controversy

The Prime Minister admitted he had asked the Central Bank Governor last month to keep details of a spending report confidential to preserve market stability. However, he welcomed the bank’s disclosure of parallel spending systems as “a positive step” towards transparency.

“This parallel spending began with the 27% tax imposed in April 2023,” Dbeibah explained. “These are funds taken directly from the Libyan people’s pockets.”

According to Dbeibah, the eastern government has spent a staggering 59 billion Libyan dinars in just one year – enough to cover salaries for all Libyans for 12 months.

Budget Claims and Counterclaims

Defending his administration’s financial management, Dbeibah insisted the 2023 budget of 123 billion dinars was distributed equitably across the divided nation, including military forces in both east and west.

“My government and ministers have spent only 10 per cent of our allocated budget,” he claimed, adding that Libya has incurred no new public debt during his tenure.

Calls for Investigation

Dbeibah urged the Audit Bureau, Attorney General, and oversight bodies to investigate the parallel spending, particularly the 59 billion dinars allegedly spent by the eastern administration.

“Who authorised these expenditures? Who received these funds?” he demanded. “The Libyan people deserve answers.”

He also pressed the Central Bank Governor to stem what he called the current “haemorrhage” of funds, offering full cooperation in providing spending details.

Economic Freefall

With Libya’s currency tumbling on parallel markets, Dbeibah called for urgent measures to stabilise the economy and preserve the dinar’s value.

“We need balance, price controls, and economic certainty,” he said. “Not more chaos and manipulation.”

While expressing willingness to negotiate solutions to the economic crisis, the Prime Minister warned merchants against price gouging and former currency dealers against exploiting the situation for political gain.

“The 12 billion dinars we’ve invested in development benefits all Libyans,” he concluded. “Not just one region or faction.”​​​​​​​​​​​​​​​​