Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba participated yesterday, in the Government Communication Forum as part of the Tripoli Media Days events, in a move, the Tripoli government says, aims at further strengthening communication between the government and citizens and developing channels for direct dialogue.
Popular Egyptian journalist Mahmoud Saad moderated the “The President Answers” segment of the event, where Libyans had the opportunity to ask their questions directly to the Prime Minister, who answered various questions related to government policies and national issues.
Over 2.5 million Libyans working in the state sector is ‘‘abnormal’’
Aldabaiba was asked about the unsustainable number of state-sector employees that, together with state-subsidies, consume over half the state budget through their salaries – leaving little money for development and economic reform.
Aldabaiba said there are people today who are suffering (economically) and left their jobs after the wars that occurred in recent years (since the 2011 February 17 revolution that ended the 42-year Qaddafi regime).
Economic hardship has made people entirely dependent on the state
He said these people ‘‘resorted to the state for salaries and became entirely dependent on it. Today, we have about 2.5 million Libyans receiving salaries and subsidies from the government, and this is abnormal. However, If we were to transfer these people from the state sector, they wouldn’t have enough to eat. There is no normal economic activity (to create alternative employment) in Libya’s economy despite our attempts to encourage youth to enter the private sector in various fields’’.
Despite the huge fuel smuggling, I cannot reform subsidies at this time
‘‘After having to adjust the Libyan dinar exchange rate disparity, we were forced to increase state sector salaries, even though it was not advisable.
As for subsidies, the government pays nearly 100 times the cost of electricity, in addition to subsidizing fuel, where the price of a litre of gasoline does not exceed 15 dirhams (US$ 0.02). Despite this, I cannot, in the current situation of Libyans who are barely able to cover their food and drink, increase the price of fuel.
Subsidies have indeed created a huge international fuel-smuggling problem
This has become a problem and has opened the door to smuggling, to the point that all neighbouring countries are relying on Libya for (smuggled) fuel.
Water subsidies and various annual grants helping to maintain living standards
“The same applies to the water we bring from the far south via the (Great Man-made) river project, which costs more than 50 times what citizens pay. We also support with subsidies the category of retirees and we will increase our support for them. We disbursed a grant (partially in dinars and part in dollars) for the wife, sons daughters and family heads, and although it is a grant disbursed out of moral conviction, it costs the state billions annually. All of this created a burden on the government and even on the people, but we maintained the minimum standard of living among Libyans.
We still haven’t created an economic environment so that the fuel pays its dues until Libyans are able to (obtain non-state-sector work) take their salaries or there is real development (in the economy).’’
Extravagant government spending?
Aldabaiba said when Libyans see a celebration and look at their economic situation, they say this is extravagant (spending), but he said ‘‘this celebration is necessary’’.
On the much-criticised number of embassies abroad paid for with the scarce hard currency, reflected in the high black-market exchange rate, Aldabaiba said his government did not increase the number of embassies abroad, but it is still considered by the public as extravagant to have so many.
The issue is made prominent by the publication of regular government spending and budget statistics which highlight the total amounts spent in hard currency on these embassies abroad – many of which in obscure countries with little relations with Libya. Moreover, in the very popular embassies the ruling elite jostle to obtain a post there. Many embassies are overloaded with appointees that only travel to to collect their generous hard currency salaries. Libyans then ask: why is this money not spent on health, education etc etc.
Nevertheless, Aldabaiba said his government decided to close some embassies, despite some countries saying that you should open embassies so that we can open to the world.
No Libyans or even illegal migrants go hungry in Libya
Despite this, Aldabaiba insisted that there are no hungry people in Libya, and that even Libya’s 3 million plus illegal immigrants do not go hungry in Libya.
On transparency and accountability in government spending
On the matter of transparency and accountability in government spending, Aldabaiba said ‘‘I’ve said it before, and I’ll say it again: there is (unaccountable) parallel spending by other entities (the eastern Libyan government). As for our government and its expenditures under Chapters One, Two, Three, and Four, not a single dirham has been spent without oversight from the Audit Bureau or the Administrative Control Authority. I don’t exempt anyone from fraud and corruption; corruption exists’’.
I did not defend any Minister from corruption investigation or resulting prison
Aldabaiba said the Attorney General investigates everyone, from ministers to the lowest-ranking officials, ‘’and I haven’t interfered with him. I challenge anyone to prove that I’ve ever interfered with anyone who requested an investigation and then we intervened. I have ministers who have been imprisoned, and they are supposed to have immunity. I didn’t defend them because that’s the right of the Libyan people, and I don’t defend anyone. Before the people, whoever commits corruption will bear the consequences’’.
State does not have the budget to subsidise housing – but banks will in 2026
Regarding the housing file, Aldabaiba said the state budgets barely cover the problems of subsidies and salaries. The housing budget requires very large sums, he said. But he said a kind of consensus has been reached, agreeing that Libyans would contribute a portion of their salaries to obtain a house.
He said the banks and the Governor of the Central Bank of Libya would (partially) subsidies housing with a new initiative with the establishment of a new housing investment body, and that the fruits of this project will be seen after February 17, 2026.
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