Saadeh Al Shami requests accountability measures to prevent impunity

The caretaker Deputy Prime Minister, Saadeh Al Shami, mentioned in a letter to the Prime Minister, "Considering the shocking revelations and the astounding deficiencies in managing the operations of the Banque du Liban (BDL), as outlined in the forensic audit report, it is the government's duty and responsibility – the executive authority that initiated the audit – to undertake and even necessitate the actions mandated by the audit results."

Al Shami added, "Therefore, as a government, we must commit ourselves to issuing a stance, which may take the form of a decision or other means, encompassing the following matters:

This article was originally published in, translated from the Lebanese newspaper Nidaa Al Watan.

Firstly, a resolute condemnation and unambiguous language regarding the blatant violations of principles of good governance and effective management within one of the country's most crucial institutions. Violations are unprecedented in the context of other central banks.

Secondly, relaying all information presented in the report to the judiciary and incorporating it into ongoing investigations.

Thirdly, initiating the amendment of the Monetary and Credit law and strengthening the role of the Central Council as outlined in the government's reform plan while subjecting the BDL concurrently to accountability and auditing (including) by the Parliament.

Fourthly, investigating the roles and performance of the auditing companies overseeing the accounts of the BDL, approving their financial statements, and verifying their compliance with international standards and systems over the past years. This is especially pertinent if doubts persist that they overlooked accounting practices in the BDL that deviated from those standards. The activities of these companies should be suspended until the investigation is concluded.

Fifthly, the Alvarez & Marsal report confirms their limited access to required information and the inability to conduct interviews with numerous officials from the BDL who possess information pertinent to the audit process. They were only allowed written responses from 14 out of 47 employees they intended to interview. Thus, the audit cannot be considered complete, and it is imperative to engage Alvarez & Marsal to continue the forensic audit by providing all required data and extending the coverage period to the remaining period, 2021-2023.

Sixthly, the BDL must immediately establish a committee to implement corrective measures in the institution's management, identifying those involved in the highlighted violations in order to take necessary actions against them.

Seventhly, forming a fact-finding committee comprising the BDL and the Finance Ministry alongside some members of Parliament (the committee's structure and composition to be determined later) to ascertain responsibilities and repatriate all illicitly transferred funds to banks for the overall benefit of the Lebanese people and the depositors, in particular."