Opposition lawmakers probe financial institutions over state-controlled oil asset transfers

Opposition lawmakers in the legislature have launched an investigation into the role major financial institutions will reportedly play in assisting the government with sales of oil assets from a neighboring country, according to sources familiar with the matter.

The inquiry comes after the head of state announced that an interim government in the region would hand over up to 50 million barrels of oil to the nation, with the leader stating the oil would be sold “immediately.”

While the leader has said he would control the proceeds of the sale, the energy ministry also announced that this would require “key banks to execute and provide financial support for these sales” and that proceeds would remain housed at “state-controlled accounts at globally recognized banks.”

The head of state signed an executive order declaring a national emergency “to safeguard oil revenue held in treasury accounts from attachment or judicial process, ensuring these funds are preserved to advance foreign policy objectives,” observers noted.

As a result, the lawmakers have reportedly raised concerns because the administration did not share details regarding which financial institutions would be involved — prompting transparency questions about the destination of the funds.

According to the legislators, it “appears that at least a portion of the oil proceeds will be held in the treasury despite being the sovereign property of another country.” They added it remained “unclear whether and to what extent the Administration still plans to direct some proceeds of oil sales into accounts held at banks in the private sector.”

“Given that rapidly evolving situation and the Administration’s failure to provide clarity on its plans for the oil and the funds raised from oil sales, we write to you to seek answers,” the lawmakers reportedly stated.

The opposition members requested that the banks provide details on whether the administration contacted them about becoming involved in the sale of foreign oil or handling the proceeds of such sales, if they were solicited to provide financial support for the oil sales, if they are holding or plan to hold proceeds from oil sales in state-controlled accounts, and all communications between the banks and administration officials regarding the oil and military operations in the region.

The letters were sent to financial institutions including major domestic and international banks, sources indicated.

Several major banks declined to provide comment, and others did not immediately respond to requests for comment.

The lawmakers are requesting answers from the banks by the end of the month, and are also requesting the banks provide updates regarding their communication with the administration on a monthly basis.

The executive residence did not immediately respond to a request for comment.

The leader announced earlier this month that he had authorized strikes in the neighboring country and that the nation had captured its leader. He then said that the country would “run” the region until a peaceful transition could occur, continuing the nation’s long history of intervention in regional affairs.