The Libyan Audit Bureau, headed by Khaled Shakshak signed a cooperation agreement on Monday with the international audit firm, BDO. The signing, which took place in London, aims to bolster efforts in audit and forensic accounting.
This agreement aligns with the Audit Bureau’s strategy to continue contracting with major audit firms. The goal is to monitor and evaluate Libyan investments and assets abroad, improving performance and taking necessary measures to protect them from erosion and loss.
BDO, one of the top five global accounting firms, is renowned for its expertise in audit and consultancy. With a presence in 164 countries and over 1,800 offices across the Americas, Europe, Asia, and the Middle East, BDO’s extensive network underlines its global influence and expertise.
Shakshak emphasised the importance of auditing Libya’s state investments abroad. The Audit Bureau is determined to utilize international firms with proven expertise and reputation in auditing and consultancy, specifically in strategic sectors like oil and energy investments.
The Audit Bureau has innovatively integrated an office for financial statement review, liaising with local and international audit firms. This pioneering initiative aims to improve the quality of auditing and reporting, alongside training Audit Bureau members in accounting and auditing practices.
Following its pursuit of monitoring Libyan investments abroad, the Audit Bureau contracted with RSM, another international audit firm, in late 2022 in London. This agreement focused on reviewing and evaluating investments overseas, and training Audit Bureau personnel in investment portfolio management.
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.
Libya’s economy, heavily reliant on oil, has suffered due to the ongoing conflict. The instability has led to fluctuations in oil production and prices, impacting the global oil market and Libya’s economy.
The conflict has led to a significant humanitarian crisis in Libya, with thousands of people killed, and many more displaced. Migrants and refugees using Libya as a transit point to Europe have also faced dire conditions.
The planned elections for December 2021 were delayed due to disagreements over election laws and the eligibility of certain candidates. This delay has raised concerns about the feasibility of a peaceful political transition.
Despite the ceasefire, security remains a significant concern with sporadic fighting and the presence of mercenaries and foreign fighters. The unification of the military and the removal of foreign forces are crucial challenges.