(CNN) -- Controversy over how money coming to Libya's new leadership is being spent -- and even how it is being converted to Libyan currency at various rates -- has prompted the head of the governing National Transitional Council to defend the credibility of his ruling group.
At a news conference this week, Mustafa Abdul Jalil, chairman of the NTC, insisted "transparency is the future of Libya," and presented NTC officials to explain the new government's financial dealings.
The NTC faces rebuilding a Libya free of the ghosts of corruption lingering from the 42-year-old regime of ousted strongman Moammar Gadhafi.
"I know there are those who doubt the integrity of the NTC, and its members and even the fighters but I tell them transparency is the future of Libya," Abdel Jalil announced to a room full of journalists in a press conference at the Islamic Call auditorium.
One person openly critical of the NTC's monetary body, the Temporary Financing Mechanism, is Ibrahim Ali, the CEO of the Libyan Transparency Association, a newly formed nongovernmental organization focused on curbing corruption.
The TFM was established to meet the urgent humanitarian needs of the Libyan people suffering from the ongoing armed conflict and has received a total of $662 million in international loans or Libyan assets from the United States, according to TFM Director Mazen Ramadan.
"The administrative corruption of the TFM is one thing. Pinpointing the numerous allegations of financial corruption claims submitted to me are the current basis of my investigation," Ali told CNN after the press conference.
CNN obtained a copy of the letter submitted by the Libyan Transparency Association last week to the NTC, requesting answers regarding the "mechanism and exchange rate used for the first $100 million that came into the accounts of the NTC."
The credibility of the TFM first came into question in September, when the NTC questioned the monetary body's director about an incident involving a TFM accountant this summer.
Before a trip to the Western Nafusa Mountains, the TFM had earmarked 60,000 dinars (U.S. $50,000) to be used for a family support program for war-stricken residents, including the purchase of six computers, TFM Director Mazen Ramadan said.
"The exchange dealer didn't bring all the money on time to the airport," Ramadan said. "The plane was scheduled to leave at 2 p.m. on a strict window that NATO had given us."
An accountant traveling with the TFM support group took 20,000 dinars in cash from millions stored on the plane that were allocated to other TFM programs, Ramadan said, adding "an NTC security guard spotted him and thought he was stealing, so he reported it."
Ramadan added: "It was a bad judgment call on his behalf, and I paid for it through the gossip channel."
A source who preferred not to be named and was involved in the intricate financial details of the TFM, alleged that the group has used black market exchange rates to siphon some of the aid money pouring into Libya.
"The first $10 million that came in were exchanged at a rate of 1.45 (dinars per $1) on August 3 by a black market dealer ... when the market rate was around 1.55 (dinars). Where did the 1 million dinars go?" the source said.
Similar exchanges occurred for two other transactions, according to the source.
"At the exchange of the second 10 million dollars on August 28, a letter signed by Qassim Azzouz, the chairman of the Central Bank of Libya, at the time listed the official exchange rate at 1.33 (dinars per $1) but the money was exchanged at a rate of 1.3 by a black market dealer in Benghazi," the source said.
The exchanges of million of dollars at the rate of 1.3 dinars per dollar caused disputes among black market dealers who in return complained to the NTC regarding the " favoritism," according to Ibrahim Salaby, a black market dealer based in Benghazi.
Salaby went back and checked the exchange rate logs for August and informed CNN that the market rates for exchanging U.S. dollars are listed at 1.55 dinars for August 3, 1.45 dinars for August 28 and 1.43 dinars for August 29, when the third such exchange occurred, according to the source.
"This is the money of the oppressed Libyan people. Mazen's bosses indirectly report to him. On what basis did they choose those dealers and those exchange rates? It's all about favoritism," the source said.
Wanis Aujili, a consultant in the Central Bank of Libya, told CNN that the rules and regulations of financial transactions have not changed since the fall of Gadhafi.
"At times of war, it is about feeding your people at any cost," Aujili said.
The United States also appears to have expressed concern over the financial dealings of the TFM. CNN received a copy of an amendment to a U.S. extraordinary expenses exemption request, specifying a safeguard that stipulates "the United States will hold back the release of up to $100 million of these funds ($500 million total) until the relevant Libyan authorities devise a credible, transparent, and effective means of delivering these resources to all parts of Libya."
Dr. Ali Tarhouni, the oil and finance minister and deputy prime minister of the NTC, responded last week to questions regarding the exchange rate used and further financial inquiries.
"We only had $13.5 million in the Central Bank of Libya -- I was willing to do anything to get the urgent needs to the Libyans. We used parallel markets in the exchange of the money," he said.
Salaby dismissed Tarhouni's explanation, saying that "calling it a parallel market is an elegant term away from the phrase 'black market.'"
Ramadan, for his part, said: "It was a big mistake not communicating every step of our work. We were too busy getting things done."
Monday's meeting was an attempt to appease questions over the financial issues, Tarhouni said.
"We hope that the transparency we are talking about now becomes the basis for our new Libya. It's a long battle that requires regulations and awareness," Tarhouni said.
Despite the controversy, the TFM has been key in getting humanitarian aid to the Libyan people, including providing salaries, food, medicine and fuel to residents, according to Ramadan.
The family support program to help assist war-stricken victims in the Western Nafusa Mountains who had not received salaries since February is one of several projects implemented by the TFM.
"We reopened three banks there and recruited members of local councils to assist in the operation," Ramadan said.
