Financial Crime World

Libyan Aristocrats’ Ill-Gotten Gains: A Kleptocratic State in the Making

Washington, DC — In a new investigative report, The Sentry raises alarm over the dramatic increase in illicit business operations in Libya orchestrated by the country’s elite, leading to essential institutional instability and dangerous regional and international repercussions.

The Sentry’s Stark Warning

In a report titled “Libya’s Criminal Boom: A Kleptocratic State in the Making,” published on November 7, 2023, The Sentry sheds light on the escalating criminal enterprise in Libya, masterminded by the rulers, which threatens the stability of the region and the world. [John Prendergast’s Quote]:

“Libya has been considered an unfortunate but stable internal problem in terms of corruption without international security implications for too long. However, the recent surge in human trafficking, fuel, and human smuggling, as well as the outright theft of billions of dollars in public assets, is transforming the country into a transnational crime hub and a perilous threat to the security of the region and the world. Libya’s kleptocratic rulers’ reckless pursuit of power and wealth risks devastating their nation’s economy and crucial institutions, potentially leading to full-blown armed conflict.”

Worsening Situation in Libya: Neglected Economy and Crumbling Infrastructure

  1. Neglected Economy and Infrastructure: The report highlights Libya’s neglect of crucial economic sectors and crumbling infrastructure, which have led to significant loss of life and property, particularly in areas like Derna.

International Community’s Response

  1. Criticism of Corruption: International players, despite their criticism of corruption and criminality among Libyan leaders, have not taken decisive action to curb the escalating trends of kleptocracy.

The Potential Consequences

  1. Risk to the Country’s Economy and Institutions: The current leaders risk devastating Libya’s economy and most critical institutions, including the National Oil Corporation, which generates nearly all of the nation’s income.

The Dark Side of Libya’s Leadership

  1. Widespread Drug Trade: The report reveals the widespread drug trade in Libya, fueled by the growing trafficking in cannabis, captagon, and cocaine, and many state officials’ abuse of their positions to participate.
  2. Role of Mercenary Groups: Mercenary groups like Russia’s Wagner Group and Turkey’s SADAT play a significant role in Libya, expanding during the offensive on Tripoli from 2019 to 2020.

Tackling the Crisis: Recommendations for Governments, Banks, and International Organizations

To address the escalating crisis, The Sentry recommends the following policy measures for governments, banks, and international organizations:

  1. Financial Pressure and Targeted Sanctions: Expose the complicity of Libyan rulers both domestically and internationally through financial pressure and targeted sanctions.
  2. Inclusive Political Process: Encourage a shift from extractive governance and promote a more inclusive political process within the Libyan system.
  3. Accountability and Transparency: Ensure public funds contribute to public good, not private enrichment, through greater transparency in government contracting and checks and balances.
  4. Justice: Tackle the culture of impunity for human rights abusers and work with international institutions to bring those responsible to justice.

Read the Full Report

Read the comprehensive report “Libya’s Criminal Boom: A Kleptocratic State in the Making” by The Sentry at [https://thesentry.org/reports/libyas-criminal-boom].

Media Inquiries

For media inquiries or interview requests, please contact Greg Hittelman, Director of Communications, at [email@email.com].

About The Sentry

The Sentry is an investigative and policy organization that unravels complex networks of grand corruption and unchecked greed that perpetuate war and human rights abuses around the world. We follow the money, connecting the dots from war zones to financial centers to expose those who fuel conflict and systemic violations of human rights. Our investigations have provided evidence and strategies that help hold perpetrators and enablers accountable. For more information, visit [<TheSentry.org>].