Libya's official news agency LANA reported on Monday that the country's interim authorities have stopped paying bonuses to former rebels due to widespread fraud costing millions of Libyan dinars.

Mohammed Harizi, spokesman for the ruling National Transitional Council, was quoted saying that
"Payment of rewards to rebels have been stopped due to violations and abuses," and that “millions of (Libyan) dinars allocated to revolutionaries were lost in (illegitimate) payments to non-beneficiaries."

Mr Harizi went on to say that the Libyan authorities have referred the violations to the offices of the attorney general and audit bureau for investigation. As such, no further payments would be made until distribution mechanisms are revised and the lists of beneficiaries approved by local military councils across the country.

The NTC spokesman stressed that the main purpose of bonuses was to encourage former rebels to join the official institutions of the state and to hand in their weapons.

Meanwhile there have been reports of militiamen expressing their anger over non-payment by protesting in front of the government headquarters in Libya's capital,Tripoli and blocking traffic in some neighbourhoods of the capital.