Alvarez & Marsal’s forensic audit on the BDL: An audit predestined to fail?

On the 1st of September 2020, the caretaker minister of finance Ghazi Wazni signed the forensic audit contract with the renowned audit firm Alvarez & Marsal. Until the 4th of November 2020, the BDL was reluctant to deliver the required documents to the audit firm due to the banking secrecy law promulgated in the article 151 of the Code of Money and Credit. On the 4th of November 2020, the BDL stated that it submitted all the documents to the Ministry of Finance. Hence, the BDL freed itself from the accusations of hindering the forensic audit. It is now the decision of the MoF that will determine the future of the latter.

We believe that the forensic audit on the BDL was predestined to fail for several reasons:
- Although the first deliverable is a preliminary forensic audit report, the 10 weeks period specified in the contract between the MoF and the audit firm seems insufficient given the number of documents required by the audit firm.
- The MoF could have asked the BDL to provide it with its accounts, lifting the banking secrecy.
- The MoF stated that it will “try” securing the required documents within the 3 months given period.
- As stated by the contract, the preliminary audit report will be discussed confidentially with the MoF, and it is the latter that will decide whether it will publish it.
- As stated by Mike Azar, “there is no independent judicial in Lebanon to actually pursue legal charges in a professional and fair way against anyone implicated in a crime based on A&M’s work”.
- Kroll was more competent than Alvarez & Marsal given its detailed contract as stated by Mike Azar.

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