Lebanon Caretaker Prime Minister Najib Mikati asked the caretaker Finance Minister Youssef Khalil to publish the final report of the Alvarez & Marsal criminal audit report of Lebanon Central Bank, as soon as he receives it.
The request came during Tuesday’s cabinet session.
This development comes after the Political Bureau of the Lebanese Phalange Party, led by party president and Member of Parliament Sami Gemayel, demanded last June the release of the report
“The Lebanese people have been waiting for over a year for the release of the forensic audit report of Alvarez & which is supposed to reveal the truth on the activities of the Banque du Liban”
“However, in solidarity and cooperation with the ruling system, the Minister of Finance decided to withhold the results from the Lebanese people, who have suffered the loss of more than 100 billion dollars of their money, with no knowledge of the truth. “
The Phalange Party demands the immediate release of the report and its publication, enabling the judiciary to perform its duty and hold those responsible for the country’s bankruptcy accountable while allowing members of parliament to carry out their legislative and oversight roles in the financial realm.”
But the Finance Ministry denied accusations that it has been “hiding ” the report submitted by Alvarez & Marsal and described the accusations as fake news and claimed it has only received a draft and non-final copy of the forensic audit’s preliminary report,” It claimed in a statement.
But, according to the Nidaa al-Watan newspaper, the final report has been received and consists of around 330 pages and is supposed to reveal the types and dates of the possible financial crimes committed by the Central Bank chief Riad Salaameh and the ruling elite.
LBC reported last December that Alvarez & Marsal promised to submit its financial audit report of Lebanon Central Bank
Here is what LBC wrote on December 7, 22
Alvarez & Marsal has yet to release any official report or communicate with the Finance Ministry about the forensic financial audit it carried out at the Banque du Liban (BDL).
However, sources in the ministry confirmed that the company is still working on putting up the initial report, and members continue to frequently visit their office in the Finance Ministry to review some of the data provided by BDL.
Furthermore, the company had assured Finance Minister Youssef Khalil that he would receive the initial report before the end of this year (2022), noting that it was scheduled for delivery on September 27, especially since the company had begun its work on June 27.
This initial report will also address BDL work between 2015 and 2021. Alvarez & Marsal will, however, be paid the remaining 10% of the contract’s overall value, or $2,700,000, when it submits its report.
No information has been leaked regarding what Alvarez & Marsal discovered in BDL up to this time. Still, sources monitoring the situation have noted that the report may not reveal any bank fraud.
Thus, it is not expected that the Alvarez & Marsal report will be different from the reports of the accounting and financial auditing firms.
However, interested actors have called to wait and avoid speculating on this matter, especially since this preliminary report will only touch on a portion of the issue.
The concerned government authorities would ask the company to resume operations and clarify more information if any gaps were reported in BDL work.
Nothing since has been heard about the report.
About A&M
The International Monetary Fund and France are among the creditors that demanded an audit of Lebanon’s central bank as part of urgent reforms to unlock financial support, as the country faces a grinding economic crisis.
As allegations of mismanagement and corruption began to mount at the central bank, the Lebanese government commissioned consulting firm Alvarez & Marsal (A&M) to conduct a forensic audit in September 2020.
The audit was plagued by delays and setbacks, amid political disputes and a lack of compliance by the central bank, which cited banking secrecy.
Speaker Nabih Berri reportedly was against conducting the forensic audit and since the ministry of finance is headed by an Amal minister, Berri was able to prevent A&M from conducting its audit
A&M quit a month after the initial agreement, and in September 2021, was commissioned again by caretaker finance minister Youssef Khalil.
The company was supposed to hand over a preliminary report in September 2022, but it has yet to appear.
The forensic audit was “supposed to scrutinize the financial transactions with regard to the law, to shed light on how and why depositors’ funds were lost”, said Sibylle Rizk, director of public policies at advocacy group Kulluna Irada.
“The question is will the Minister of Finance finally make the report public? Sami Haddad, a Lebanese analyst told Ya Libnan last June
He added: “I am 100 % sure Berri will never allow minister Youssef Khalil to make the report public and the whole world knows exactly why ”
Former Central Bank governor Riad Salameh stepped down yesterday ending his 30-year tenure as a wanted man in Europe over criminal charges
The first vice governor of Lebanon’s central bank, Wassim Mansouri, took over as acting governor after ruling politicians failed to name a successor to Salameh, whose term ends on Monday with the financial system in tatters.
Mansouri is a distant cousin of Parliament Speaker Nabih Berri, who is head of the Shi’ite Amal Movement and who has nominated him to the most senior of the central bank’s four vice governor roles in 2020.
Commenting on the fact that both the Finance minister and acting governor were appointed by Berri, Haddad told Ya Libnan: “Good luck Lebanon in getting the Alvarez & Marsal criminal audit report . ”
Ya Libnan / LBC/ News Agencies
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