The head of Libya’s central bank has reportedly fled the country due to escalating threats from militias, highlighting the ongoing instability and security challenges in the region.
According to the Financial Times, Sadiq al-Kabir, Governor of Libya’s central bank and his fellow top-level personnel have been compelled to depart from their homeland as a result of intimidation by armed militias.
According to al-Kabir in a telephonic conversation that the newspaper released on Friday, bank employees are being subjected to intimidation and fear by militias who even go as far as abducting their children or kin for coercion into working.
The ongoing political turmoil in Libya, which has been fraught with conflict since the NATO-supported ousting of Muammar Gaddafi in 2011 and is now divided between two opposing administrations situated respectively in the eastern and western parts of the country, finds its latest focal point at The Central Bank of Libya. This institution holds significant portions of oil revenue worth billions.
On Monday, the conflict between two administrations reached a new level of intensity. Abdul Hamid Dbeibah – the Prime Minister leading Libya’s internationally recognized Government of National Unity stationed in western Tripoli- made an attempt to oust al-Kabir by sending representatives to take control of the central bank governor’s office.
As per the report by FT, there was an escalation of tension between the duo. Al-Kabir had alleged that the premier’s speeches misrepresented a ‘rosy’ economic outlook and involved excessive spending. Opponents of the governor contend his mishandling of oil revenues is problematic.
The eastern government, led by Prime Minister Osama Hammad in Benghazi, declared on Monday the closure of oilfields as a reaction to assaults directed at both its employees and leaders within the bank.
Although the eastern government lacks international recognition, Khalifa Haftar – its military head – holds sway over a majority of Libya’s oilfields.
According to Al-Kabir’s statement provided to the FT, any efforts made by Dbeibah towards substituting him were unlawful and went against leadership appointment agreements established under United Nations’ negotiations at the financial organization.
According to Malik Traina of Al Jazeera reporting from Tripoli, it appears that there is no entity exercising complete authority over the bank.
Due to the appointment of a new board of directors by the Tripoli-based Presidential Council, there has been an upheaval which resulted in the suspension of numerous banking operations across the country. As a result, people are currently unable to access their money or make transfers.
“The situation is unclear,” stated Traina. The central bank is now governed by the newly appointed board, which has enforced stringent security measures to ensure comprehensive monitoring of the area.
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Traina noted that the staff of the central bank was experiencing confusion as al-Kabir had advised them to avoid coming to the premises while new directives from the board instructed them otherwise, prompting employees to start working.
He stated that banking transactions have halted for almost a week resulting in hindrance to the transfer of money. Furthermore, there is an immense issue with liquidation which makes it impossible for people to withdraw their funds. Additionally, he mentioned about potential delays in public employees’ salaries due to upcoming threats.
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Al Jazeera interviewed Tripoli resident Amal Dalha, who expressed that ever since the problem arose, prices have been on the rise. She questioned why people work if they cannot use their salaries to meet their needs and shared concern over salary freezes with rumors of them lasting for several months ahead: “How are people going to live?”
Unsteadiness
Once again, the dispute regarding authority over the central bank causes further unrest in the country abundant with oil. The eastern and western sides are supported by Russia and Turkey correspondingly which intensifies instability.
On Monday, the authorities in the east announced a shutdown of all oil facilities including fields and terminals. No duration for the closure was specified.
This week, the UN Support Mission in Libya (UNSMIL) urged for the cessation of independent judgments and force majeure on oil fields while putting a stop to escalations and violence. Moreover, central bank employees must be safeguarded at all times.
Traina stated that the objective is to have a “stakeholder meeting” and has arranged an “urgent gathering involving all partnered entities” in order to devise a resolution.
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