Libya’s state-owned telecom firm reveals losses from violations

Libya’s state-owned telecommunications company has revealed that financial mismanagement led to the loss of hundreds of millions of dinars, as reported by the Libya Review on January 7th.

The Libyan Post, Telecommunications and Information Technology Company (LPTIC) said the losses, which prompted the cancellation of major contracts, stemmed from administrative violations, weak oversight, and exclusive agreements signed under its previous leadership.

In November 2025 the detention of the Director General of LPTIC and the company’s Director of Finance was ordered following an investigation by the Attorney General’s Office into the company’s finances.

The disclosures by LPTIC reflect a broader pattern of corruption and graft that has long plagued Libya’s state-run companies and public institutions. Weak oversight and political interference have repeatedly enabled the misuse of public funds across key sectors, from healthcare to energy.

In a formal letter submitted to the Libyan Audit Bureau, LPTIC disclosed losses totalling roughly 430 million Libyan dinars. The document, delivered during a recent leadership transition, detailed a pattern of irregular financial practices that strained the company.

According to the letter, one of the main drivers of the losses was uncontrolled expenditure categorised under the “social responsibility” budget. These expenditures continued despite explicit instructions issued by the Audit Bureau in 2021 ordering such spending to be halted. Rather than being eliminated, the costs were reassigned to government initiatives and digital transformation programs. LPTIC said this practice massively inflated operating expenses and weakened liquidity across subsidiary companies.

In response, the current leadership said it has implemented new governance controls. Any future social responsibility spending will now require prior written consent from the chairman of the board and will be limited to specific humanitarian needs.

The company also pointed to exclusive contracts signed with Libya Cell and Rawafed Libya between 2023 and 2025 as a major source of financial damage. The agreements reportedly enabled excessive revenue shares and exclusive agency rights with no competitive bidding, diverting resources and undermining the financial stability of affiliated firms.

These contracts have since been cancelled, and agency rights have been reopened to open competition. LPTIC reported that the move is expected to generate annual savings of around 438 million dinars.

It was also disclosed by LPTIC that Rawafed Libya resold internet bandwidth to oil fields and ports at prices more than seven times higher than official rates.

The letter also cited other violations, including unilateral decision-making without consent from the board, the formation of unnecessary internal committees, unviable projects, and questionable international investments outside the telecommunications sector. All identified cases have reportedly been referred to the appropriate authorities for further investigation.

Libya Review, Libya Herald, Maghrebi.org