President Michel Aoun received today the director of Alvarez & Marsal James Daniell, which is in charge of criminal audits, in the presence of the caretaker Minister of Finance, Youssef Khalil, and the government commissioner at the Banque du Liban, Christelle Wakim. (Photo from @LBpresidency Twitter page)
BEIRUT — President Michel Aoun met on Thursday with James Daniell, a managing director at Alvarez and Marsal, the consultancy firm tasked with the forensic audit of Banque du Liban, who relayed that “data collection” had begun.
Here’s what we know:
• “Accountability will take place on all levels,” Aoun’s statement said, adding that this is “the first building block of the reform path.”
• Alvarez and Marsal were to audit the central bank in September 2020 but withdrew due to “insufficient provision of information.” On June 22, official sources told Reuters the audit was announced to officially begin on June 27.
• The forensic audit, to examine the bank's past financial transactions to boost transparency, has been a key demand of donor states that want Lebanon to enact reforms before releasing funds to help address a financial meltdown that began in 2019.
• Banque du Liban’s accounts are audited annually by Deloitte and Ernst & Young. Financial statements from 2018 showing BDL’s assets were reportedly inflated by $6 billion despite verification by EY and Deloitte.
• Following Lebanon’s 2020 default on Eurobonds, consultancy firm Kroll was recruited to conduct an audit but was dismissed on the basis of allegedly having ties to Israel. Subsequently Alvarez and Marsal was tasked with the audit but had to interrupt their work after not receiving the necessary information. Additionally, Oliver Wyman and KPMG were recruited to audit the BDL’s accounts and compliance with central bank measures, respectively.