A statement by the High Council of State, issued by Mohamed Takala, expressed deep concern and strong condemnation of the deteriorating economic and financial situation in the country, holding the Central Bank of Libya directly responsible for the “uncontrolled expansion of public spending” and what he described as “financial chaos.”
This statement came in response to the statement of the Governor of the Central Bank of Libya, which revealed the scale of the financial and economic imbalances the country is suffering from, announcing a change in the exchange rate of foreign currencies against the Libyan dinar.
Takala emphasized in his statement that enabling the “parallel government in the east of the country” — which he described as an “illegitimate entity” that enjoys no recognition — to access and spend public resources constitutes a “blatant violation of financial laws and regulations” and a “serious breach of the state’s financial law,” which requires spending according to an approved budget and legal authorization.
The statement held the Central Bank of Libya directly responsible for this expansion in spending, including “financing illegitimate entities outside the framework of the official and recognized state.”
Takala announced his absolute rejection of the continuation of any financial dealings with entities outside the legitimate framework, considering any transfers or financial arrangements that benefit the “parallel government” to be legal violations requiring immediate investigation and accountability.
Through the statement, Takala called on the Audit Bureau and the Administrative Control Authority to “open an urgent investigation” to determine how these illegal expenditures were passed and to reveal those responsible within or outside the administration of the Central Bank.
He also called for the necessity of conducting a “comprehensive restructuring of the state’s monetary and financial policy,” based on the principles of transparency, strict adherence to the financial law, and exclusive dealings with legitimate entities subject to oversight and accountability.
Takala reaffirmed that the High Council of State “will not stand idle in the face of the squandering of Libyans’ resources,” and he vowed to hold accountable anyone proven to be involved in the use of public funds for political purposes or non-national loyalties, renewing the call to unify all financial and economic institutions under a single legitimate authority.
