The Libyan Investment Authority (LIA) has said that appointing a receiver for its funds is illegal, saying such a matter occurs by agreement of the opponents or by a judicial ruling.

LIA clarified in a statement that the state order issued by the Head of the Ajdabiya Court of First Instance to appoint a judicial guard committee over LIA's funds was not a judicial ruling issued in a lawsuit, but rather a state order issued without the representation or presence of opponents.

It confirmed that the rules of spatial jurisdiction regarding the court competent to hear lawsuits and issue state orders related to LIA as a defendant are within the jurisdiction of the North Tripoli Court of First Instance, reiterating the Ajdabiya Court of First Instance does not have jurisdiction to issue this order.

LIA recalled the announcement of the Department of Inspection of Judicial Bodies of the Supreme Judicial Council addressed to the heads of the courts of first instance in Libya, stating that the way to request judicial protection for rights and legal positions is through filing a lawsuit; not through orders on petitions.

On April 16, the Ajdabiya Court of First Instance issued an order imposing judicial guardianship and appointing receivers over the funds and revenues of the Libyan Investment Authority based on the request of the head of the parallel government.