International Review of Central Bank's Two Branches

The United Nations is Pleased to Announce the Launch of the International Financial Review of the two Branches of the Central Bank of Libya

Acting Special Representative of the Secretary-General and Head of the United Nations Support Mission in Libya (UNSMIL) Stephanie Williams is pleased to announce the finalization of the process to initiate an international audit of the two branches of the Central Bank of Libya (CBL).

This is the culmination of a process laudably commenced by GNA Prime Minister Sarraj on July 10, 2018 in a letter to UN Secretary General Antonio Guterres in which he requested the United Nations to facilitate an international audit of the Central Bank branches in Tripoli and Beyda as a means to restore integrity, transparency and confidence in the Libyan financial system and create the conditions for the unification of Libyan financial institutions. On 13 September 2018, the UN Security Council, in Resolution 2434, mandated UNSMIL to support the requested financial review process.

Following several meetings chaired by former SRSG Ghassan Salame in the fall of 2018, Governors Al-Kabir and Al-Hibri agreed to and finalized the Terms of Reference of the audit in December of that year. During this phase of the process, UNSMIL consulted with the International Financial Institutions. In September 2019, representatives of the two branches of the Central Bank of Libya (CBL) participated in a selection panel to review bids submitted by qualified international auditing firms.

In compliance with best practices and with the advice of UN technical specialists, the panel voted unanimously to award the contract to Deloitte. UNOPS, the UN agency that managed the procurement process, has now finalized the contract with the awarded company in order for the audit to commence as soon as possible.

The international financial review process is a critical step towards enhancing transparency in the Libyan financial system and creating the conditions for the eventual unification of the CBL. The process is equally important to have an informed dialogue on the equitable distribution of national revenue in Libya and to re-establish national accountability mechanisms.

Beyond its UN Security Council mandate, the international audit review is a top priority for the International Follow Up Committee for Libya established during the Berlin process. As the process begins, the international community and the Libyan public, will be watching closely to ensure that all parties fully cooperate with the process.

UNSMIL wishes to express its thanks to President of the Presidency Council and GNA Prime Minister Sarraj, Governors Al-Kabir and Al-Hibri, Acting Attorney General Sadik Al-Sour and National Audit Bureau Chairman Khaled Shakshak.

UNSMIL will coordinate closely with the National Audit Bureau authorities in western and eastern Libya through the course of the international audit. It is fully expected that the national audit authorities will conduct any follow-on or forensic audits recommended as a result of the international audit.

UNSMIL takes this opportunity, based upon the terms recently put forward by UNSMIL and a number of key member states, to urge for the immediate lifting of the blockade imposed by the Libyan Arab Armed Forces on Libya's oil facilities.

The National Oil Corporation (NOC) has warned that a continuation of the blockade risks further damage to and deterioration of Libya's vital oil infrastructure and pipeline network. The NOC must be allowed to fully resume its operations for the benefit of all Libyans and the future of the country. UNSMIL hopes that the international community will fully support this urgent call.

(Source: UN)

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