The Libyan government, led by Osama Hammad, announced on Monday it is taking urgent legal action. The action concerns the international arbitration case between Kuwait’s Al-Kharafi company and the Libyan state. The government described the procedures related to the case as illegal.
In an official statement, the government explained these steps are based on its commitment to protect Libyan assets. This duty is mandated by the Constitutional Declaration and current laws. The action follows the discovery of new official documents. These documents revealed serious, fundamental flaws in the 2006 investment contract. They also showed clear violations of jurisdictional rules and public order. The government cited basic defects in the arbitration process itself, which strip the ruling of legal legitimacy.
Prime Minister Osama Hammad initiated these measures after uncovering serious corruption. The government found evidence of organized collusion between parties at home and abroad. This directly harmed the interests of the Libyan state. It noted some actions by internal parties amount to serious crimes against state security and public funds, including high treason.
The government has filed a lawsuit to terminate the investment contract. It is also legally challenging the arbitration ruling issued on March 22, 2013. This aims to protect state rights and prevent illegal financial burdens on the public treasury.
On Monday, the North Benghazi Court for Urgent Matters issued a writ of injunction. The order, No. 339/2025, halts all procedures to enforce the challenged arbitration ruling. This suspension will last until the national judiciary reaches a final decision on the matter.
The Libyan government affirmed that this court decision reflects the sovereignty and independence of the national judiciary. It reinforces the authority of national courts over international disputes involving public funds and public order.
The government stressed it will relentlessly pursue all legal avenues, both domestically and internationally. It will prosecute all those involved in these unlawful actions. The state will work to recover its rights fully and hold anyone who harmed public funds accountable, regardless of their position.