The Libyan Attorney General has ordered the detention of a former director of the Libyan Foreign Investment Company’s branch in Mali on charges of damaging public funds, according to an official statement issued on Friday.
The decision followed an extensive review by the Attorney General’s Office of a report from the Audit Bureau examining the administrative and financial procedures linked to the rehabilitation project of the Africa Hotel. The investigation revealed serious violations and mismanagement that resulted in significant financial losses for the Libyan state.
According to the findings, the former director unlawfully terminated an existing €10 million contract with a construction firm and re-awarded the project to another company in breach of approved procedures. Investigators confirmed that 50% of the contract’s value had been paid despite the absence of completed works.
The probe also uncovered that the director had intentionally taken out a €12 million loan from a local bank, appointed a consultancy owned by his spouse, and diverted the loan’s funds for purposes unrelated to the hotel project. This gross misuse of public funds resulted in the hotel’s ownership being transferred to the lending bank due to the accumulated debt.
The investigating prosecutor ordered the suspect to be held in pre-trial detention and instructed authorities to pursue the remaining accused individuals both domestically and internationally. The Attorney General stressed that accountability measures will continue to ensure that all those involved in the misuse of Libya’s public funds face justice.
These developments come as Libya continues efforts to tighten oversight over state investments abroad, particularly amid growing scrutiny of financial mismanagement in foreign branches of state-owned companies.
