UN: Libya's Central Bank to undergo much-anticipated audit

CAIRO (AP) — The United Nations announced on Monday that Libyan officials are allowing a long-sought external audit of the country's Central Bank to go ahead, a breakthrough that could pave the way for an end to a crippling oil blockade.

Libya’s oil and money are strategic assets that have fueled conflict between the country’s rival administrations and militias since the 2011 NATO-backed uprising that ousted and killed longtime autocrat Moammar Gadhafi.

Libya sits on the largest proven oil reserves in Africa. The standoff over petrodollars reveals the extent to which Libya's riches have always been the real stakes of the country's deep-seated civil strife.

In recent years the country has become split between the U.N.-supported government in Tripoli, the capital, and an east-based administration loyal to military commander Khalifa Hifter.

The audit approval follows months of international pressure. Earlier in July, the U.S. Embassy in Libya denounced “the illegal obstruction of the long-overdue audit,” and threatened sanctions against “those who undermine Libya’s economy.”

The Central Bank of Libya is the repository for billions of dollars annually in oil revenue as well as foreign reserves. In 2014, the bank splintered along the country's broader political fault lines. The internationally recognized headquarters remains in Tripoli while a Hifter-allied eastern branch was set up in Benghazi.

The U.N. Mission in Libya welcomed the international financial review as a “critical step” toward improving transparency and accountability in Libya’s financial system.

London-based accounting firm Deloitte will conduct the audit of both banks, it said.

Ramzy Agha, a senior official in the east-based Central Bank, confirmed that preparations for the audit had...