Alvarez & Marsal representatives update Aoun on BDL forensic audit

BEIRUT — President Michel Aoun met today with representatives from Alvarez & Marsal, in the presence of Christelle Wakim, the government’s commissioner to the central bank.

Here’s what we know:

    • James Daniell and Paul Sharma, managing directors at A&M and in charge of the forensic audit being conducted on the central bank, informed Aoun about the progress of the evaluation of the data they have received so far from the central bank.

    • A&M officials also said they expect the evaluation process to end early next week and they “hope the data they have received [from the central bank] is compliant with the information they have already requested.”

    • On Monday, Parliament approved the extension of a law that lifts banking secrecy on public accounts, after it expired on Dec. 29. Free Patriotic Movement MP and head of Parliament’s Finance and Budget Committee Ibrahim Kanaan had requested to add the law to Monday’s Parliament schedule, as it was originally not included on the session’s agenda.

    • The forensic audit has been an issue of contention between Aoun and Banque du Liban Governor Riad Salameh, with the president saying Salemeh is delaying the audit by not handing over the required data, and Salameh stating the central bank has given all the requested information to A&M and called for the company to “immediately” start the audit.

    • In late December, FPM MPs called on the government to “immediately” dismiss Salameh, after Prime Minister Najib Mikati in a press conference ruled out the possibility of removing him, saying “one can’t change officers during a war.”

    • On Feb. 21, Reuters reported that contracts signed between the central bank and four commercial banks show the latter agreeing to pay three-eighths of 1 percent commission on purchases of government certificates of deposit worth millions of dollars and the contracts made no reference to Forry Associates, a company controlled by Raja Salameh, brother Riad Salameh. That company ultimately received such commissions, Riad Salameh told Reuters in an interview in November.

   • Mount Lebanon Public Prosecutor Judge Ghada Aoun has issued an extended subpoena for Salemeh after he missed a third questioning in a lawsuit filed against him by the civil society group The People Want to Reform the System for embezzlement, wasting public funds, illegal enrichment and money laundering.

   • In early February, Germany became the latest European country to start gathering information relating to the finances of Salameh. He is currently under investigation in Luxembourg, France, Switzerland and Liechtenstein

   • Alvarez & Marsal has been tasked by the government to conduct the forensic audit of the central bank, with Oliver Wyman and KPMG selected to conduct the accounting audit.