According to Zaglam, the whole scheme, which was initiated before the interim government was appointed, is so enveloped in corruption that it is proving a major drain on the public purse.
After suspending the payments, Zaglam announced that no money would be paid out until the lists had been properly audited. Unsurprisingly, his decision has not gone down well with the revolutionaries, who are continuing to harass him and use violence against him and other government officials in a bid to get their cash.
Things have clearly got too much for Zaglam, who declared in May, 'I can't work in these circumstances. This is a waste of public money.'
For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.
© 2012 Menas Associates