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GNA Finance Ministry disregards Central Bank’s salary payment procedures

The Ministry of Finance in the Government of National Accord disregarded what the Central Bank of Libya said last Wednesday, regarding the start of paying the salaries of government employees and those of the public sector for the months of January and February.

The ministry explained, through correspondence published on the Internet, and “218News”  confirmed it from its sources, that the ministry stated that the notice regarding salary distribution contained many inaccuracies, as well as the refusal of the Central Bank last Thursday to receive salary notes, contrary to what it had mentioned.

The Ministry of Finance said in its letter, which observers described as embarrassing to the governor Al-Siddiq Al-Kabir, that Wednesday’s statement was made by innocent intentions, explaining this in a letter to the director of the governor’s office that came in two papers, indicating that the agreement provision of financial coverage is in accordance with the requirements of payment issued by the Presidential Council at a time, using the surplus in foreign exchange sales or revenues from oil sales from previous years, or a financial advance, as stipulated in the banking Law.

In its correspondence, the Ministry of Finance cited what the Central Bank did last year when it suspended the salaries of the first quarter of 2020 before returning to liquidate them in April, which resulted in a complex problem represented in a state of crowdedness in front of banks, coinciding with the spread of the Coronavirus.

GNA Finance Ministry confirmed in its letter to the director of the governor’s office that it had approved the central proposal regarding unified spending for the whole of Libya, but the bank did not abide by its social responsibilities at the time when the Ministry of Finance did not receive any objection from the bank regarding the agreement.

The correspondent carried a clear accusation to the Central Bank Administration, including mixing the cards for the current political course and confusing the peaceful transfer of power, according to what was stated in the letter.

GNA Finance Ministry cited in its speech to the central bank previous delayed measures taken by the bank for government decisions, including spending budgets for municipalities in the eastern region to face the repercussions of the Coronavirus, but the central bank refused to liquidate them under the pretext that it was not subordinate to the administration of the GNA, in addition to the governor’s refusal to liquidate a sum of money allocated to the municipality of Al-Bayda to face rain flooding.

Financial and economic experts in Libya, on social media, demanded clarification from the Central Bank about its advice to release salaries, calling for a speedy measure to be taken to receive permissions from the Ministry of Finance amid a liquidity crisis and high commodity prices.

Observers commented on the recurring problems between the governor of the Central Bank of Libya, Al-Siddiq Al-Kabir, and officials of the vital institutions of the Government of National Accord, the most recent of which was with the head of the National Oil Corporation, Mustafa Sanalla, in addition to frequent disputes with the Ministry of Finance led by Faraj Boumtawi.

The Libyan parties had agreed, with the support of the UN mission in Libya, to establish temporary financial arrangements worth 9 billion dinars to run the government’s procedures during January and February.

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