On Tuesday, the Libyan Parliament-designated government led by Fathi Bashagha asked the country’s tax authority to transfer revenues to it, instead of the Tripoli-based Government of National Unity (GNU).
The request was made in a letter sent by Finance Minister, Osama Hammad to the tax authority. He asked for the revenues to be transferred to the Benghazi-based Central Bank in eastern Libya.
The move comes days after the GNU Prime Minister, Abdel-Hamid Dbaiba said his government “was not responsible for any financial arrangements made by Bashagha’s government.”
Tax revenues are a major source of income for Libya’s state budget, after petroleum.
On Sunday, Bashagha’s government stressed its keenness to “protect the safety of civilians and the preservation of the security and stability of Libya.” It clarified that it “would not initiate any military actions or practice any form of violence.”
It also accused the GNU of political and military escalation. “The outgoing government obstructs any peaceful political process and aborts all attempts to hold elections, all in order to remain in office.”
Libya has been in chaos since a NATO-backed uprising toppled longtime leader Muammar Gaddafi in 2011. The county has for years been split between rival administrations, each backed by various militias and foreign governments.
The current stalemate grew out of the failure to hold elections in December, and the refusal of Prime Minister Dbaiba to step down. In response, the country’s eastern-based Parliament appointed Bashagha, who has for months sought to install his government in Tripoli.
Tensions have been rising for months in Libya as the two Prime Ministers vie for power; rising fears of renewed conflict two years after a landmark truce.
Notably, fighting between armed groups has been more common in and around Tripoli. As forces aligned with Dbaiba further consolidated their control over the capital.