Lebanon selects Alvarez & Marsal for new audit of central bank
France-based consulting firm Alvarez & Marsal will conduct an audit of more than four years of financial transactions at Lebanon's central bank, including the period following the country's...
Lebanon has chosen the international consulting firm Alvarez & Marsal to conduct a comprehensive audit of its central bank's financial records, spanning more than four years, including the tumultuous period after the country's financial collapse in 2019. The Central Bank of Lebanon revealed this decision in a written statement on Wednesday, emphasizing the audit will extend from October 1, 2019, to December 31, 2023.
The audit will scrutinize transactions involving the central bank's foreign assets, such as the government subsidy program for essential goods, financial transfers to the public sector, and letters of credit issued for fuel imports.
The firm was selected following a competitive tendering process. In 2023, Alvarez & Marsal had previously completed an audit of the central bank's transactions between 2015 and 2020, which disclosed instances of misconduct during the tenure of former governor Riad Salameh, who served for three decades. Recently, Lebanese authorities indicted Salameh and a former commercial banker for financial crimes, including embezzlement and illicit enrichment.
Salameh faces investigations in Lebanon and numerous other nations for similar charges, which he denies.
Despite the depletion of foreign reserves in the years following the financial crash, the Lebanese government expanded its subsidy program to encompass items like cocoa and cashew nuts, sparking widespread criticism. Fuel constituted the most significant expense under this program, amounting to approximately $3 billion annually. In August 2021, the central bank terminated its fuel subsidy program altogether.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
