Tripoli Chamber of Commerce to form committee to audit private sector debts owed by the state and lobby for their payment

By Sami Zaptia.

Tripoli, 30 October 2021:

Tripoli Chamber of Commerce has formed a committee to audit the debts owed to the private sector by the Libyan state.

It has called upon its members to provide documentary proof of any debts owed to them by the state so that it can communicate with the concerned state authorities to discuss and resolve the non-payment of these debts.

The Chamber says this initiative comes within the framework of its role in supporting and activating the role of the private sector, and in solving obstacles and the various problems facing its members.

Legacy of late payments encourages corruption

It will be recalled that the Libyan state has a reputation for late payment to the local and international private sector. The payment of outstanding debts is often used by unscrupulous state employees to extract backhanders from the private sector.

Many in the private sector are forced to pay backhanders to extricate their debts in order to save their businesses. Libya does not have debt factoring services and the state will rarely enter into any contract where it has to pay in advance.