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Corruption in Libya

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Corruption cases

Corruption in Libya reaches the highest echelons of power, as detailed in a series of reports titled "Libya’s Kleptocratic Boom", published by The Sentry. These reports uncovered extensive corruption and criminal activities facilitated by the Libyan political leadership, including human trafficking, fuel smuggling, narcotics, money laundering, and the theft of public funds. The extent of impunity is starkly highlighted in the widespread bribery involving public officials. For instance, when SNC-Lavalin was charged with bribing Libyan officials in 2015, it was revealed that the company has been engaging in this practice from 2001 to 2011. It has made payments amounting to nearly $48 million to Libyan public officials in exchange for construction contracts.

One of the most recent scandals, which was reported in 2024, implicated the Libyan health department. The Libyan Attorney General ordered the arrest of Medical Supply Authority’s financial officer for misappropriating about $307 million. The diverted fund was part of the budget allocated for the management of the financial aspects related to public and limited tenders and contracts for various medical supplies.

Corruption in the National Oil Corporation

Of particular importance is the corruption and neglect perpetuated on essential institutions such as the National Oil Corporation (NOC). This state-owned company, which is responsible for a significant chunk of Libyan revenue, has been plagued by mismanagement and corruption. Political corruption, for example, severely hampers the organization’s profitability. As property of the state, there are appointments, promotions, and management decisions that are made for purely political reasons. Pressure from the government to redirect funds also contributes to the reduction of efficiency and profitability.

Administrative corruption also hounds NOC. In 2019, the Libyan Audit Bureaus accused NOC Chairman Mustafa Sanalla of corruption and practices that lack transparency due to the absence of financial disclosures. The practices led to legal irregularities, loss of investment opportunities, and the defection of the company’s board of directors. Sanalla was also involved in previous corruption scandals such as the case of delayed delivery of armored vehicle from an American company.

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