The Lebanese government’s decision to assign a company specialized in financial forensic audit in the accounts of the Central Bank raises fears that the operation would be limited to the BDL and would not affect other state institutions for political reasons.
Former Minister of Justice Ibrahim Najjar talked about two aspects of the government’s decision, political and legal.
Underlining the importance of the financial audit, he stressed that it should be conducted in accordance with the applicable laws, so it “does not end up challenged by the State’s Shura Council, similar to what could happen with the government’s latest decision on appointments.
“The political aspect is known,” Najjar said. “It is an attempt to point to the monetary authorities in order to circumvent the monetary crisis, the high dollar exchange rate, and the aggravation of the economic crisis.”
On the legal side, former Interior Minister Ziad Baroud did not see the move as a violation of the law, because he said that the government has the authority to manage state affairs and the BDL is part of the state.
Najjar, on the other hand, considered that the government’s decision overstepped the role of the Audit Bureau, which has the task of auditing public accounts. He noted that the Cabinet had no authority over the Central Bank, which enjoys full independence.
While emphasizing the importance of the audit, Najjar stressed that the government’s decision “can be challenged and annulled by the State Shura Council because it does not enjoy the force of law.”
Lebanon’s cabinet agreed to hire turnaround specialist Alvarez & Marsal for a forensic audit of the Central Bank.
The audit “will represent a drastic transformation on the path to uncovering what happened at the financial level in terms of waste and theft,” Prime Minister Hassan Diab told the cabinet earlier this week.
