10 July 2024: NOC strongly denies any involvement in smuggling Chinese drones to Benghazi

This week we look at the seizure of Benghazi-bound Chinese drones, renewed focus on agreeing a budget by the CBL and HoR, and continued confusion in the oil sector as Aoun temporarily steps back.

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Italy confirms seizure of Chinese combat drones destined for Benghazi; NOC strongly denies any involvement in the affair

Incident: On 2 July, the Italian Guardia di Finanza confirmed in a statement that a total of six containers coming from China and destined for Libya were confiscated in Gioia Tauro (in southern Italy) after irregularities were detected in the customs documentation. The containers were supposed to carry components for the assembly of wind power generators for electricity. After performing radiogenic scanning an in-depth inspection was carried out. Subsequently, various components for the assembly of two combat drones were detected.

The Italian authorities said the drones were concealed among some composite cover loads replicating wind blades. The assembled drones have a weight of more than 3 tons, a length of more than 10 meters and a wingspan of about 20 meters. In light of the facts found, the seizure was ordered by a judge in connection with the suspicion of international arms trafficking to a country - such as Libya - subject to embargo on the basis of UN Security Council resolutions, Italian national and EU regulations. Furthermore, two drone control stations were detected.

On 2 July, NOC denied reports in the British Sunday Times that the NOC was involved in the attempt to smuggle combat drones from China to Benghazi. It expressed its surprise at the attempts to disrupt its work and reputation as well as the inclusion of its name in such media materials. The NOC reaffirmed that it reserved the right to respond and take the necessary legal measures inside and outside Libya against local and international media outlets that published such news from unknown sources. It stressed that all of the NOC's activities with foreign partners are audited by oversight authorities such as the Audit Bureau and the Administrative Control Authority. 

Comment: On 18 June, Italian authorities had already confiscated three containers on the cargo ship MSC Arina, based on a tip off from the US. On 29 June, three more containers on board the MSC Apolline were confiscated in Gioia Tauro. All six containers were to be shipped to Benghazi. 

According to the photos and the video released by the Guardia di Finanza, while the drones have similarities with a Wing Loong II, there are several differences, especially with regard to the sensors at the nose of the drone. It might be that the drone is a modified version of the Wing Loong II or a new model, which would be of utmost interest to western intelligence. The Wing Loong II has already been operated by the LNA with support from the UAE. Some sources believe they are Fei Long-1. 

The Times article referenced by the NOC was published on 30 June. It did not directly accuse the NOC of being involved in these arms sales, but rather referenced another case where two men of Libyan origin were charged in Canada in April with conspiracy to organise the purchase of Chinese drones in return for below-market-value Libyan oil. The investigation began in 2022. The Times claimed the men put a Chinese company in touch with Libyan National Army (LNA) Commander Khalifa Haftar to broker the deal, which it claimed also involved the NOC. 

These claims and charges were made public in April, but the NOC did not take any public action at that point, perhaps because the NOC link was tangential to the main arrests and/or because it did not garner significant international attention. The Times article implied that the Canada case and this latest Italian seizure of drones are linked. NOC chairman Farhat Bin Qadara already faces accusations of corruption and dodgy-dealings involving Government of National Unity (GNU) Abdul Hameed Dabaiba, Haftar and close foreign allies such as the UAE – his opponents have been ramping up their briefings against him and alleged NOC corruption in international media in recent months.

Significance: It is not clear why such a risky way of delivering the drones was chosen. Transport by air or by using a Chinese-flagged ship would have been without any risk of interception. The LNA is in dire need of UAVs for surveillance of the vast, open areas it controls in Libya’s East, Centre and South. However, in order to be efficient, drones need to be employed within the framework of joint combined armed warfare and this is – still – outside of the capabilities of the LNA. Nevertheless, it is likely that the LNA will continue finding ways to secure the delivery of Chinese drones and Russian military equipment and arms to the East. In addition, so far there have been no indications that Haftar will be sanctioned or even publicly condemned for attempting to smuggle drones into Libya, nor are there indications that China or Russia will be sanctioned either. As a result, there are few disincentives for the LNA to continue to expand its military capabilities.

There do not seem to be any indications that the Italian authorities are accusing the NOC of being directly involved in the attempt to smuggle the drones into Benghazi. Instead, the NOC is pushing back against the Times suggesting that these shipments of Chinese drones could be linked to the conspiracy uncovered by the Canadian authorities involving Chinese arms being sent to Haftar in return for Libyan oil. The latter would require the involvement of at least some NOC officials, albeit this is more likely to be at an individual level rather than an institutionally-sanctioned conspiracy. The NOC will be keen to avoid being dragged into further accusations of corruption and cover up, hence the strong refutation of any involvement. However, the physical seizure of the drones plus the NOC’s public denials could actually draw more attention to the issue. Accusations of NOC involvement in dodgy deals and cut-price sales of crude are likely to continue and even intensify, with the current lack of transparency around Libyan crude sales and foreign contracts facilitating this state of affairs.

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Italy confirms seizure of Chinese combat drones destined for Benghazi; NOC strongly denies any involvement in the affair

Incident: On 2 July, the Italian Guardia di Finanza confirmed in a statement that a total of six containers coming from China and destined for Libya were confiscated in Gioia Tauro (in southern Italy) after irregularities were detected in the customs documentation. The containers were supposed to carry components for the assembly of wind power generators for electricity. Subsequently, various components for the assembly of two combat drones were detected.

On 2 July, NOC denied reports in the British Sunday Times that the NOC was involved in the attempt to smuggle combat drones from China to Benghazi. It expressed its surprise at the attempts to disrupt its work and reputation as well as the inclusion of its name in such media materials.

Renewed focus on a ‘unified’ budget as Kabir does the rounds and HoR plans to vote on the budget; narrative battle over the state of the economy continues

Incident: On 6 July, a CBL delegation led by Governor Sadiq al-Kabir met in Cairo with House of Representatives (HoR) Speaker Aqeela Saleh to discuss a number of important issues. These included the CBL unification process, the development of banking services and electronic payment systems, the steps taken to adopt the unified budget for the year 2024, the laws related to the banking sector, coordination with state institutions, and the proposal to address crude swaps and fuel subsidies.

On 9 July, High State Council (HSC) head Muhammed Takala issued a formal HSC statement addressed to Saleh noting that he had been made aware that the HoR intends to discuss and issue the State General Budget Law for 2024 in its session on 9 July. The letter reminded Saleh that under the Libyan Political Agreement (LPA), all such legislation must be discussed with the HSC. 

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From our Blog..

On 5 July, UNHCR, IOM, and the Mixed Migration Centre (MMC) published a new joint report titled ‘Death in the Desert’. Using data visualization and drawing on interviews with more than 31,000 refugees and migrants, the report maps perilous migration routes to Africa’s Mediterranean coast, including crossing points and ‘dangerous areas’ in Libya. ‘The route in Libya passes by...read more

To read our other blog posts, click here.

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Renewed focus on a ‘unified’ budget as Kabir does the rounds and HoR plans to vote on the budget; narrative battle over the state of the economy continues