[ thread 🧵 on the NOC’s LFB account ]
In late May 2019, Belqacem Haftar visited DC in a bid to secure U.S. assistance in setting up a mechanism meant to deposit $$$ proceeds from #oil exports into a special account in lieu of sending them straight to the CBL in Tripoli.
In late May 2019, Belqacem Haftar visited DC in a bid to secure U.S. assistance in setting up a mechanism meant to deposit $$$ proceeds from #oil exports into a special account in lieu of sending them straight to the CBL in Tripoli.
The next year, in the summer of 2020, the US & the UN endorsed the idea of preventing oil $$$ proceeds from being funneled directly & systematically to the CBL in Tripoli.
But the rationale now promoted was not the one advocated by Haftar & his associates.
But the rationale now promoted was not the one advocated by Haftar & his associates.
In 2020, international diplomats began suggesting the formation of a special #committee overseeing the equitable & transparent distribution of oil #revenues among the three provinces, & among essential #budget categories.
Said #committee would be above the govt & above the CBL.
Said #committee would be above the govt & above the CBL.
On Aug 21, 2020, PM Fayez al-Serraj & HoR chairman Aqila Saleh issued similar declarations meant to pave the way for a #ceasefire.
Both statements specified that the $$$ inflows from oil sales were now to be #warehoused in a “special” account at the #LFB.
Both statements specified that the $$$ inflows from oil sales were now to be #warehoused in a “special” account at the #LFB.
https://twitter.com/JMJalel_H/status/1500247678315380742
The importance of the stipulation above can’t be overestimated, for it enabled the #NOC to step in as the owner of said “special” account w/ #LFB.
If anyone tells you that this little tweak was anything less than a major earthquake in Libya’s political economy, don’t believe ’em
If anyone tells you that this little tweak was anything less than a major earthquake in Libya’s political economy, don’t believe ’em
In Sep 2020, after GNA Deputy PM Ahmed Maetiq met w/ Khaled Haftar in Russia, the LNA put an end to its $10bn oil blockade.
As oil $$$ resumed coming in, they got stored in a “special” LFB account owned by the NOC—in conformity w/ the new idea.
The CBL was no longer at the top.
As oil $$$ resumed coming in, they got stored in a “special” LFB account owned by the NOC—in conformity w/ the new idea.
The CBL was no longer at the top.
Yet the Financial Committee wasn’t set up.
Reason being: both Gov Kabir & new PM Dabaiba dragged their feet.
Owing to basic power considerations, the 2 men were uneager to implement a mechanism allocating $$$ revenues thru an organ hierarchically above the govt & above the CBL.
Reason being: both Gov Kabir & new PM Dabaiba dragged their feet.
Owing to basic power considerations, the 2 men were uneager to implement a mechanism allocating $$$ revenues thru an organ hierarchically above the govt & above the CBL.
https://twitter.com/JMJalel_H/status/1500249507728134149
But efforts to promote the formation of a Financial #Committee resumed in earnest last month.
And on Apr 13, the NOC released $8bn from its LFB account in exchange for receiving LYD37.6bn from the govt & the CBL.
And on Apr 13, the NOC released $8bn from its LFB account in exchange for receiving LYD37.6bn from the govt & the CBL.
https://twitter.com/mllm_news/status/1514386596384043008?s=21https://t.co/tpHy9rqxBV
Some Libyan watchers noticed that the Apr 13 precedent exemplified a pattern whereby the hierarchy at the very top of the Libyan state was now looking different compared to the usual pecking order.
At the tip of the pyramid is now the NOC’s $$$ account.
At the tip of the pyramid is now the NOC’s $$$ account.
https://twitter.com/tashfinly/status/1514781911377272842?s=21
https://twitter.com/Mllm_News/status/1514386596384043008
One could even argue that the Apr 13 decision marked the beginning of what may emerge as the new modus operandi of Libya’s public #expenditures.
Going forward, the main allocations of public dinars will #potentially be declared in the exact same way as what we saw on Wednesday.
Going forward, the main allocations of public dinars will #potentially be declared in the exact same way as what we saw on Wednesday.
In sum, the old idea of a Financial Committee at the very top, wherein the NOC plays a key role, may already be in the process of getting implemented now, as we speak.
So why the oil #blockade by Haftar’s factions all of a sudden? Why do the blockaders demand Sanallah’s #firing?
So why the oil #blockade by Haftar’s factions all of a sudden? Why do the blockaders demand Sanallah’s #firing?
Well, the reason Egypt & the eastern Libyan factions are so angry is rather simple:
Arrangements like the one we saw on Apr 13 between the NOC & the GNU give PM Dabaiba a shot in the arm.
Dollars go to the CBL on an immediate basis—& that could give Dabaiba a new lease on life.
Arrangements like the one we saw on Apr 13 between the NOC & the GNU give PM Dabaiba a shot in the arm.
Dollars go to the CBL on an immediate basis—& that could give Dabaiba a new lease on life.
What Belqacem Haftar asked DC for back in May 2019 was a setup giving the LNA discretionary power over how every oil dollar gets allocated & spent.
The modus operandi that’s emerging now isn’t quite exactly what the Haftars wanted.
Hence the discontent . . .
[ end of thread ]
The modus operandi that’s emerging now isn’t quite exactly what the Haftars wanted.
Hence the discontent . . .
[ end of thread ]
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