Three Maltese companies have been banned from doing business in Libya after their names emerged in a list of companies accused of “smuggling money” out of the country by Libya’s Audit Bureau.
Equitrade Limited of Marsa, Rafak Ltd based in Sliema and AMB Overseas Ltd in San Gwann have been put on a list of 23 Libyan and foreign companies banned from doing business in the north African state.
According to the Audit Bureau, which acts as a kind of regulator on behalf of the Libyan authorities, the companies have had their accounts frozen, as they were being used by Libyan companies to smuggle millions of euros of Libyan money out of the country.
The Audit Bureau claimed the money was being smuggled out through the Libyan companies acting as importers. They opened letters of credit in favour of the foreign companies, including the Maltese ones, which acted as exporters.
The Bureau claimed “once the money in hard currency was approved by the Central Bank of Libya and transferred out of Libya, no goods were ever delivered to the country. Often empty containers are sent or containers loaded with worthless goods costing a fraction of the letters of credit.”
Once the money was approved,no goods were ever delivered
Apart from the three Maltese companies, the bureau has also banned companies registered in Switzerland, Tunisia, Hong Kong and the United Arab Emirates.
Research conducted by this newspaper shows that while Equitrade is fully owned by Maltese shareholders, the other two companies mentioned by the bureau – Rafak and AMB Overseas – are owned by Mohamed Bakush, a Libyan residing in Tripoli.
When contacted, a spokesman for Equitrade, which according to its website is “a leading distributor in Libya for animal health supplements, veterinary pharmaceuticals, horseshoes, tack and polo clotting”, said he knew absolutely nothing about the ban.
“This is complete news to us and we know nothing about it,” the spokesman said.
“We have not been notified about anything of this sort, and as far as I know, we are continuing with our trading in Libya,” he insisted.
Efforts to reach Mr Bakush proved futile.
His companies, Rafak and AMB Overseas, are listed as trading in various sectors, including engineering, furnishing equipment for the oil industry and exporting medical supplies in Africa, Europe and the Middle East.
The Audit Bureau’s decision, reported also in the Libyan Herald, said that out of the 10 Libyan companies included in the list, nine had imported nothing despite having letters of credit to the tune of €37 million.
The remaining Libyan company on the list had imported just €80,000 worth of goods when it was issued with a letter of credit to import €8 million’s worth.
Criticising the Libyan Central Bank for issuing the letters of credit without any due diligence, the bureau said the situation “is leading to the slow collapse of the Libyan economy as a result of the exploitation of the state that the country is suffering from”.
Apart from civil war, Libya’s economy is being hard hit by a crash in international oil prices and a halt to its oil production.
ivan.camilleri@timesofmalta.com