Libyan authorities have arrested an individual suspected of exploiting bakery licenses to obtain subsidized flour and reselling it at inflated prices. The device for combating financial crimes and money laundering and terrorist financing announced the arrest, stating that the individual had been using licenses from several bakeries to obtain subsidized flour, which was then sold at prices exceeding the legal ceiling.
The investigation revealed that the suspect had rented several bakeries and used their licenses to obtain subsidized flour, despite the licenses being registered under different individuals. The flour was then sold at higher prices to achieve illicit profits. This practice is considered a breach of the subsidized goods support system and harms the public purse and citizens.
The subsidized flour was obtained from production factories at subsidized prices and sold at higher prices. The device stated that this misuse of subsidized goods support systems affects citizens, as flour is a staple food item closely tied to daily sustenance and bakery needs.
The suspect was handed over to the competent public prosecution to take the necessary legal measures against him and complete the investigations regarding the facts attributed to him. This comes as part of the device's efforts to pursue activities that exploit the support allocated to basic goods to achieve illicit profits and combat speculation that affects the availability of goods and their prices in the markets.
The incident occurred amidst a recurring crisis in Libya's bakery sector, resulting from a combination of problems, including a shortage of supplies, high production costs, and disturbances in fuel and electricity supplies. The price of flour has risen steadily during 2026, from about 190 dinars in January to 275 dinars in July, then to 350 dinars in August, before reaching about 380 dinars in October.
The Libyan government has taken measures to address the crisis, including discussing mechanisms for distributing and delivering flour and monitoring quantities allocated to bakeries. A national initiative was also launched to organize support for the bread industry and monitor about 1876 bakeries to prevent the diversion of flour, fuel, and financial support from their intended purposes.
On October 21, the Ministry of Economy announced a reduction in the price of a quintal of flour from 380 dinars to less than 325 dinars, after activating direct sales from mills to bakeries, in a step that aims to improve supplies and limit price pressures. Despite this decline, monitoring the paths of flour distribution and ensuring it reaches the eligible bakeries remains a major challenge to the stability of the bread market and the protection of public funds.
Key points
- The Libyan authorities arrested an individual for exploiting bakery licenses to obtain subsidized flour and reselling it at inflated prices.
- The incident highlights the challenges of monitoring subsidized flour distribution and ensuring it reaches eligible bakeries.
- The Libyan government has taken measures to address the crisis, including discussing mechanisms for distributing and delivering flour and monitoring quantities allocated to bakeries.
