Muammar Gaddafi wants Libya’s Basic People Congresses to support his proposal to dismantle the government and turn over its oil wealth to the people themselves. Oil is worth $32billion a year to this North African state of five million.
Many Libyans say they have not benefited from rising oil revenues and foreign investment after Libya, in 2003, abandoned prohibited weapons programmes and ended its international isolation.
“Do not be afraid to take directly the oil money and the responsibility to create the right government structures that further the interests of the people,” Libyan leader Gaddafi told representatives of the country’s Basic People Congresses (LBPCs) is a speech broadcast on state television.
“The administration has failed and the state economy has failed. Enough is enough. The solution is we Libyans take directly the oil money and decide what to do with the money.”
Gaddafi urged a sweeping reform of government bureaucracy, saying the whole cabinet system should be dismantled to free Libyans from corruption and mismanagement.
“These popular committees (ministries) should hand over to the people the schools, manufacturing plants, farms, all state enterprises, and the oil money before they are dismantled.”
Gaddafi said corruption had become widespread in the government and just reshuffling cabinet would not cure the state of graft and mismanagement.
“You would fail to stop corruption as long as the state owns the oil wealth, makes contracts with companies to carry out projects, manages health care, education and other services and economic projects.
“We are not afraid that people enjoy freedom on every street and in every place to appoint officials of their liking, create associations, set up businesses and companies as they like.”
Gaddafi is bent on his mission, despite being warned by many, including prime minister Al-Baghdadi Ali al-Mahmoudi and central bank governor Farhat Omar Bin Guidara in late-2008 that such a move could inflict long-term damage to the Opec member state’s oil-dependent economy.
It is not yet known what the real impacts could be on oil-related investments in Libya, both on and offshore.