A new contest for control of the central bank in divided Libya could emerge after the eastern-based parliament said on Thursday it approved in principle the resignation of its governor, Naji Issa, and backed a member of the bank's board to replace him on an interim basis. 

The House of Representatives's (HoR) spokesperson said parliament backed Fowzi Musbah Abukhzam, the board member, to temporarily fill the role at the central bank. 

In the western half of the North African country, however, Naji Mukhtar Ali, the first deputy of the High Council of State (HCS), rejected Issa's resignation and told him to stay in his post. 

Yet the head of HCS, Mohamed Takala, contradicted his first deputy's position, and called on Abukhzam to carry on his duties on an interim basis, in line with the HoR decision, underlining some rifts even among the main Libyan factions. 

"You are requested to assume your duties and carry out the functions of the Governor of the Central Bank of Libya on an interim basis, pending an agreement with the House of Representatives on the appointment of a Governor for the Central Bank," Takala said in a letter to Abukhzam, which was viewed by Reuters and confirmed by a person at the HCS.

The eastern parliament will discuss Issa's resignation in a coming session, its spokesperson wrote on X.

In August, Issa submitted his resignation to the two legislative chambers, saying he could not continue in his post but without explaining why, according to two documents seen by Reuters at the time. 

DIVIDED COUNTRY

Libya has been split since 2014 into rival authorities ‌in ⁠the west and east that emerged from the turmoil following the fall of Muammar Gaddafi in a NATO-backed uprising in 2011. It is now run by the eastern-based HoR, which was elected in 2014, and the western-based HCS, whose ​members were drawn from a parliament elected in 2012.

After Issa submitted his resignation, both chambers had said he should stay in the position until the issue was discussed. 

In reaction to Thursday's decision by the eastern parliament, Ali, the HCS first deputy in the west, rejected what he called "the unilateral measures taken by the presidency of the House of Representatives." 

"You are requested to continue performing your tasks," Ali told Issa in a letter seen by Reuters that was confirmed by a central bank official and an HCS source.

Issa took up the post in ​2024 when the two legislative chambers agreed on his appointment as a ​way to ⁠end a stand off over control of the central bank. 

Separately, the central bank said in a statement on its verified Facebook page that it condemned the forced entry of people into its headquarters, violating the governor’s office in his absence.

It did not explain the incident, but it said it holds all those involved responsible for any consequences, "foremost among them the Ministry of Defence, given its responsibility for protecting and securing the bank’s headquarters."

In a separate incident, masked men tried to storm the country's financial oversight agency on Wednesday, in what Libya's UN mission called an "unacceptable" attempt to install a senior employee by force.