On 8 August, US Special Envoy to Libya Richard Norland met with Central Bank of Libya (CBL) Governor Sadiq al-Kabir to discuss the ‘latest developments in the unified budget, the efforts of the Central Bank to rationalize spending, the path of unification and maintaining the sustainability of the state,’ as well as issues such as the closure of Sharara. Norland highlighted ‘the urgent need for a consensus-based agreement on a unified east-west budget’. The same day, Norland met with Presidential Council (PC) head Muhammed al-Menfi. Norland’s read out of the meeting did not mention economic issues, but Menfi said that they discussed ‘the need to work with a clear financial mechanism to monitor and rationalize spending and increase disclosure and transparency, while emphasizing adherence to national sovereignty in managing resources.’
In the following days, and amid growing security and political pressures on the Government of National Unity (GNU), reports began circulating that Menfi intends to remove Kabir, by force if necessary. The reports indicated that Menfi is under pressure from Prime Minister Abdul Hamid Dabaiba to find a way to remove Kabir, or create a mechanism which bypasses the CBL and House of Representatives (HoR) budget, in order to secure funds for the GNU once more.
Norland effectively confirmed the rumours and gave clear support to Kabir in a follow-up statement. On 12 August, Norland said he had met that day with Kabir ‘to discuss the concerning armed group mobilizations around CBL headquarters. The emergence of yet another set of confrontations between armed groups in recent days highlights the ongoing risks posed by the political stalemate in Libya. Threats to the security of the CBL staff and operations are unacceptable. Like Libya’s other sovereign institutions, the CBL’s integrity must be protected. In this case, attempting to replace the leadership of the CBL by force can result in Libya losing access to international financial markets. Disputes over distribution of Libya’s wealth must be settled through transparent, inclusive negotiations toward a unified, consensus-based budget.’