The worst economic meltdown in decades surrounding Lebanon has deepened on Friday after an international firm pulled out of its contract to audit the central bank's accounts in a major move toward releasing billions of dollars in aid.
Finance minister Ghazi Wazni said that auditors Alvarez & Marsal had terminated the agreement after they were unable to secure the data needed after the government gave the company another three months to finish operating and pledged to facilitate the process.
The Banque du Liban has repeatedly said that bank secrecy laws dating back to the 1950s prevent it from handing over all the information auditors require.
The bank has delivered less than half of the documents that the auditors have requested, as penetrating into the banking laws requires parliamentary approval.
Audit has been a key requirement for international donors, including France, to enable financial assistance and allow progress on a loan with the International Monetary Fund (IMF).
The main goal of the auditors was to expose the government's expenditures, it had borrowed from the central bank, and expose corruption.
The Lebanese parliament was working on a draft law to temporarily lift banking secrecy laws for the audit to allow full access to data.
Prime Minister Hassan Diab has repeatedly urged Central Bank governor Riad Salameh to hand over the required documents to help with the reform process.
It is noteworthy that Lebanon has been under severe financial pressure since October 2019, when protesters took to the streets to revolt against deteriorating living conditions, demanding the fall of the political elite.
read more..
https://see.news/imf-stresses-urgency-to-audit-lebanese-central-bank-budget/
Follow the latest news on Google News
