500 companies blacklisted over suspected letter-of-credit fraud, Libya’s ACA says

Libya’s Administrative Control Authority said it had reviewed the cases of 500 companies placed on a blacklist amid suspicions surrounding documentary credit procedures.

The authority discussed regulatory and legislative measures intended to protect public funds during a meeting in Tripoli chaired by ACA head Abdalla Gadirboh. Participants included finance committee chairmen from the House of Representatives and the Supreme Council of State, as well as the chairman of the Final Accounts Committee and officials from both houses.

The meeting covered coordination on major financial and economic files. It reviewed progress on the final accounts and followed the launch of their third phase, which began in 2021 and is intended to present Libya’s financial position accurately. Officials also discussed the performance of the National Oil Corporation and production and revenue indicators.

The ACA described letter-of-credit fraud as a major problem that expanded after the 2011 revolution, amid weak state institutions. In the scheme, companies obtain foreign currency at the Central Bank of Libya’s lower official exchange rate to import goods, but import goods worth less than declared or none at all. They then keep the difference and may sell the foreign currency on the black market at a higher rate, contributing to inflation and increasing cash outside the banking system.

Earlier cases cited in the report include 85 import companies that the Economy and Trade Ministry asked the central bank to suspend after they failed to import cooking oil using $130 million in letters of credit granted in 2025. In another case, customs officials said 11 companies had obtained letters of credit without importing goods. Investigators found that $54 million had been transferred to foreign beneficiaries. The case was referred to the Public Prosecutor’s Office.