By Libya Herald reporter.
Malta, 3 September 2015:
The Audit Bureau has revealed . . .[restrict]further evidence of corruption by local commercial Libyan banks. The Tripoli-based state Al-Wataniya TV station reported Wednesday that the Audit Bureau Media Office has revealed that local commercial banks were opening bogus Letters of Credit (LCs).
The report highlighted the Gumhouriya bank, Magarief branch, Tripoli, which had opened an LC for about LD 380 million in favour of three building material companies between 1st January and 16th June 2015.
Al-Wahda bank, Ghot Shaal branch in Tripoli was also accused of opening bogus LCs to the value of LD 500 million.
It will be recalled that both the Audit Bureau and the Central Bank of Libya are engaged in an anti-corruption drive aimed at preserving Libya’s fast depleting hard currency. This drive has included the creation of a banking compliance unit as well as other measures regarding debit cards.
|Up to 31/7 2015 – LD billions||Compared to estimated budget up to 31/7/2015 – LD billions||Compared to actual until 31/7/2014 – LD billions|
Source: CBL August 2015
The depletion is caused by the collapse in Libyan oil production and exports on the one hand, as well as the collapse in international crude oil prices. As a result, Libya is suffering budget deficits which have been exhausting its foreign currency reserves.
CBL figures released at the end of August show that the bank has succeeded in reducing foreign currency distribution up to 31/07/14 from US$ 24.8 billion down to US$ 11 billion in the first seven months of 2015. [/restrict]