On Saturday, the Public Prosecutor’s Office in Libya ordered the detention of senior officials from the Libyan Foreign Investment Company (LAFICO) on charges of financial corruption and administrative violations.
Those arrested include the head of LAFICO’s Morocco office, along with executives responsible for technical affairs and services.
Investigations revealed that the officials had illegally disbursed payments for non-existent job contracts and deliberately failed to collect rental revenues from company-owned properties, leading to significant financial losses for the Libyan state. Prosecutors determined that their actions violated legal and financial protocols, enabling individuals to receive unjustified financial benefits while neglecting their responsibilities in managing public assets.
LAFICO, which manages Libya’s sovereign wealth and foreign investments, has long faced allegations of mismanagement and political interference. The company oversees billions of dollars in assets across various sectors, including real estate, banking, and tourism, but a lack of oversight has allowed widespread financial irregularities to persist.
Libya has struggled with endemic corruption in state institutions, particularly in investment funds and oil revenues, which have been vulnerable to fraud and exploitation due to weak regulatory enforcement and political instability. Despite repeated efforts to implement anti-corruption measures, challenges remain due to deep political divisions, security concerns, and the influence of powerful interest groups.
The latest detentions mark a significant step in Libya’s fight against financial misconduct, as authorities attempt to recover misused funds and hold corrupt officials accountable.
However, without stronger governance structures and transparency reforms, the risk of further financial mismanagement remains high. Calls for greater oversight and legal accountability continue as Libya seeks to restore trust in its institutions and protect its foreign investments.
