Series of irregularities: Forensic audit report uncovers $47 billion depletion from BDL reserves

Lebanon's financial turmoil continues to unravel as the details of a forensic audit report expose a trail of mismanagement and losses. 

The Banque du Liban (BDL) has reportedly seen over $47 billion drained from its reserves between 2010 and 2021, raising concerns about the fate of these funds.

Approximately $24.5 billion was directed towards the Energy and Electricity Ministry, divided as follows: 

-         $18.4 billion allocated as treasury advances for fuel purchases by Electricité du Liban (EDL), accompanied by $543 million in direct transfers to the company.

-         $5.6 billion was disbursed to the Energy Ministry for various expenses, including maintenance, service provider payments, and project planning, revealing a deep-rooted crisis in the electricity sector. 
 
In addition to the funds spent on the electricity sector, further scrutiny reveals that an additional $7.6 billion was lost by BDL due to the government's subsidy policy post-crisis. These subsidies were intended to support fuel, medicines, wheat, and food products. 

Unfortunately, the funds primarily ended up in exploitation, monopolization, and smuggling, depriving the public of their intended benefits.

The audit also highlights $8 billion that BDL redirected overseas to settle state obligations related to telecommunications, internet services, foreign debt, and interests. 

Additionally, the funds covered expenses for the external diplomatic corps, security and military equipment maintenance, and various state costs, with around $200 million transferred to the state's general expenditures.

A substantial loss of $7.4 billion stemmed from the devaluation of Eurobonds following the state's inability to make timely payments and its failure to restructure its debts. These accumulated losses total more than $47 billion, a staggering amount drawn from the people's hard-earned money and deposits.

Accountability and responsibility remain elusive despite the gravity of these financial irregularities and losses. The absence of questioning, investigation, or consequences from authorities compounds the sense of injustice felt by the Lebanese.