The Audit Bureau called on the Central Bank of Libya to immediately stop any procedures to change the boards of directors and executive managements of state-owned commercial banks.
The Deputy of the Audit Bureau called in a letter to the Governor of the Central Bank, Issa Naji, to adhere to the correct law and governance systems and to separate the role of the Central Bank of Libya as a supervisor and an owner, stressing the need to form neutral general assemblies; which do not have any interests with commercial banks; and that they consist of professional persons who exercise accountability powers according to annual reports and objective performance indicators that contribute to raising banking performance.
The Audit Bureau pointed out that the Central Bank uses broad powers that do not serve the state's economic goals and disrupt the work of the banking sector. It explained that the approach of change carried out by the Central Bank in the boards of directors of commercial banks owned by banks and their executive managements is random and unplanned; saying that it violates the legal procedures that outlined the steps for change according to the provisions of the law.
The Audit Bureau also indicated that the Central Bank interferes in the work of the Board of Directors and encroaches on its powers with regard to changing the general managers of banks, and imposes general managers in an unorganized manner.
The Audit Bureau also pointed out the Central Bank’s move to change the boards of directors before the end of the legal term of the boards of directors, and through general assembly meetings that are not called for clearly, saying that their dates are not clear as well, and their objectives are not outlined, while they are not linked to the approval of annual reports.
