BDL complaint: Samir Hanna raises procedural objections

As expected during the Aug. 27 hearing before Beirut investigating judge Sheherazade Nasser, the attorney for former Bank Audi CEO Samir Hanna submitted procedural objections to the magistrate on Thursday. He had previously asked her to grant him additional time for this purpose. A new hearing has been set for Sept. 17.

The ongoing investigation began with a complaint filed and announced last January at a press conference by current BDL governor Karim Souhaid against his predecessor, Riad Salameh, and Samir Hanna.

This complaint mainly concerns shares acquired in 2010 by a group of investors, brought together by Bank Audi, from the Egyptian company EFG Hermes, which at that time was the main shareholder of the Lebanese bank. EFG Hermes eventually sold its entire stake in Bank Audi for about $900 million, according to a source familiar with the case.

The source indicates that a company established in the Cayman Islands, MOSF, then acquired some of Bank Audi's shares by issuing bonds in return, secured by both these shares and Bank Audi's credit. According to this source, the central bank subscribed to these bonds for a total of $153 million.

However, Souhaid's complaint is notably based on provisions of Lebanese law that prohibit BDL from taking stakes in private institutions, unless there is an urgent need related to the stability of the banking sector. The defense, on the other hand, argues that Article 70 of the Code of Money and Credit authorizes BDL to intervene to preserve the soundness of the banking system and economic stability. The defense also maintains that, in any case, the loan granted as part of this transaction has been fully repaid, along with more than $33 million in interest.