The government in eastern Libya has been forced to postpone a reconstruction conference for the stricken city of Derna amid concerns about how donations will be spent and a lack of coordination with the west of the country. A large part of Derna was destroyed on the night of 10 September when severe flooding caused two dams above the town to burst. The death toll has been put at more than 10,000, but no official figure is yet deemed accurate. The official explanation for the reconstruction conference being postponed from 10 October until November was to give companies “the necessary time to present effective studies and projects that will contribute to the reconstruction process.” The conference date had been announced by the prime minister of the eastern-based government, Osama Hamad. But on Saturday Richard Norland, US ambassador to Libya, which has two rival administrations in charge, joined the calls for the reconstruction process to be a national event, rather than one conducted solely by the east. He said: “As focus on reconstruction increases, Libyans need to be assured public funds are used transparently, accountably, and that assistance goes to those in need. “The international community is preparing to assist in this effort with financial and technical expertise. The Libyans must establish the structures that bring authorities from across the country together to agree on priority expenditures and ensure funds are efficiently and properly allocated. We urge Libyan authorities now to form such unified structures – rather than launching separate efforts – that represent the Libyan people without delay. “A proposal to hold a reconstruction conference in Benghazi on 10 Octoberwould be much more effective if it were conducted jointly and inclusively in coordination with institutions that manage resources and funding taking into account the best interests of the Libyan people”. Late last week, European powers in conjunction with the UN special mission for Libya called “for the establishment of an independent mechanism to oversee reconstruction in the east”. It added: “The status quo of political and institutional divide, and the lack of accountability for national resources and funds, cannot go on”. Some diplomats hope to use outrage over the dam catastrophe to force Libyan politicians to agree to stage repeatedly postponed national elections. It has been made privately clear to politicians in Libya’s east that donation levels from European governments will depend on clearer stewardship of the funds. It also follows demands, echoed inside Libya, for the inquiry into the causes of the disaster to include an international element since there is widespread distrust over the internal inquiry currently under way. The public prosecutor’s office has provisionally arrested 12 officials in connection with the disaster. These mainly local officials range from the former head of the water resources authority to the mayor of Derna. The inquiry focus is on what happened to money allocated for the reconstruction of the dams, and why the work contracted to a Turkish firm was not pursued. Libya is an oil rich country but suffers from rampant corruption, particularly in construction contracts. In September the Central Bank of Libya (CBL) announced that the country’s oil revenues in the first eight months of 2023 amounted to 59.8 billion Libyan dinars ($12.33bn). Derna has been under a form of lockdown, with checkpoints put in place, international news organisations expelled and dissidents arrested, since a demonstration demanding clearer accountability for the disaster. On Wednesday, the eastern authorities announced the creation of a fund for the reconstruction of Derna and other areas affected by the flooding. They did not indicate how the new fund would be financed, but the HoR has already allocated 10 million dinars ($2m) for reconstruction. Then, on Friday, the eastern administration announced it had begun compensating residents affected by the floods, distributing cheques to the mayors of the stricken towns. During talks with the European Commission, UN envoy, Abdoulaye Bathily, said he had called for funds delivered to Libya to be accountable. Many humanitarian workers say the immediate need is psychological counselling for traumatised residents.