The Official Spokesperson for the Libyan Customs Authority stated last Sunday (15 February) that there is no shortage of food supplies in the market. He said reports in the media to the contrary are devoid of any truth.
The Spokesperson insisted that on the contrary, there has been an increase compared to last year in the supply of goods at the ports according to the Authority’s monitoring and reports at Libya’s main ports received by the Authority on 15 February.
He said these goods have been cleared from ports and are in the market and that the PM Aldabaiba has instructed the Authority to ease and facilitate the speedy clearance of goods from ports.
The Spokesperson revealed that a committee has also been formed to monitor companies that have obtained letters of credit from the Central Bank of Libya to check if they have indeed used those LCs (granted at the official, preferential exchange rate) to import the stipulated goods.
Economy Ministry reverses decision to fix price of cooking oil
It will be recalled that the declaration by the Customs Authority coincides with the Ministry of Economy and Trade reversing its decision on the same day to fix prices of vegetable cooking oils.
It said this is to allow regulated competition mechanisms to play their role in achieving price stability. However, the Ministry added that it will continue to monitor the prices of basic commodities and will take legal action against any violations or monopolistic practices.
Law Enforcement Dept denies its market inspections led to cooking oil disappearing from shops
Meanwhile, the Director of the Law Enforcement Department, Abdulhakim Al-Khitouni, whose enforcement agency has been in the forefront of inspections of commercial units seeking hoarded and overpriced cooking oil, said yesterday the public perception that his unit’s enforcement activities were responsible for cooking oil disappearing from the shelves of shops was totally erroneous.
He said his unit, part of a committee formed by the Tripoli government to fight hoarding of goods and overpricing in the runup to the fasting month of Ramadan, acted in the interest of the citizens, and the cooking oil has been missing since the decision was issued.
Al-Khitouni said oil will be pumped into Tripoli yesterday by one of the companies that were released by the oversight body. ‘‘We want to clarify this for the public, and this is a statement for which I am accountable before God: we carried out our work with complete professionalism and discipline’’.
As part of his wider remit to fight LC corruption, Al-Khitouni revealed that 85 companies have not imported into Libya the goods they had been opened LCs (at the preferential official exchange rate) for.
He explained that:
• 45 companies granted LCs had submitted their paperwork to the Ministry of Economy, but the Ministry found no evidence of any oil shipments entering the country upon review.
• 40 companies obtained letters of credit but did not import any oil into Libya.
He said one month after the enforcement and inspection campaign had begun, all 40 and 45 companies will be referred to the Administrative Control Authority for the necessary legal action.
LC fraud
It will be recalled that many Libyan companies who had received import LCs at the preferential official bank exchange rate had been found, since the 2011 revolution, to have either imported cheaper goods, such as salt, mineral water or hollow breeze blocks, or failed to import any goods into Tripoli.
Instead, taking advantage of the differential between the official and black-market exchange rate, they sell their hard currency to make a 20 to 30 percent profit. This has depleted Libya’s finite hard currency reserves and caused price rises and goods shortages in the Libyan food consumer market.
CBL agrees with importers to urgently deliver 2.5 million boxes of cooking oil
It will be recalled that in a meeting on 15 February with manufacturers and importers, the CBL agreed on the urgent delivery of 2.5 million boxes of cooking oil, to be made available this week and next. This, it explained, is in addition to the existing open letters of credit for oil imports, valued at US$ 100 million, equivalent to 6 million boxes.
The aim of this, it explained, is to positively impact the prices of these commodities and their supply system in the coming months, ensuring they are affordable for citizens given the current shortages.
Part of the wider move to fight rising prices
The moves by the Customs Authority, the Law Enforcement Department, the Municipal Guards and the CBL come as part of a wider concerted effort by the Libyan authorities, to fight price-fixing and monopolistic behaviour by some importers granted letters of credit (LCs), LC corruption, imported inflation and price increases, protect standards of living through purchasing power, reduce demand for the US dollar in the black market, and defend the value of the Libyan dinar.
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