Libya’s audit bureau mandates approval for high-value public contracts

Libya’s audit bureau mandates approval for high-value public contracts

Libya’s Audit Bureau has directed the Tax Authority to obtain bureau approval for all public contracts exceeding 5 million Libyan dinars, following a recent Supreme Court ruling that strengthened the bureau’s oversight role.

In an official letter obtained by Libyan Express, Audit Bureau Undersecretary Attia Hussein cited a 17 January 2024 Supreme Court decision that declared Law No 2 of 2023 unconstitutional.

That law had attempted to modify the Administrative Control Authority’s founding legislation (Law No 20 of 2013).

Hussein emphasised that the Audit Bureau’s constitutional mandate includes comprehensive oversight of government revenues and expenditures, including preliminary review of contracts and financial transactions. “The bureau’s jurisdiction to exercise financial control is a constitutional right that cannot be diminished or separated from its duties,” he stated.

The undersecretary specifically warned against attempts to circumvent oversight by dividing larger contracts into smaller amounts to avoid scrutiny.

He also stressed the importance of verifying proper tax payments on all contracts, highlighting the bureau’s role in ensuring fiscal compliance.

The directive reinforces the Audit Bureau’s authority under Law No 19 of 2013, which established its organisational structure and responsibilities. Hussein called for strict adherence to judicial rulings and the bureau’s foundational legislation.

This move represents a significant step in strengthening financial oversight of public spending in Libya, requiring greater transparency in high-value government contracts.

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