1.A short thread about latest drama surrounding proposed forensic audit of #Lebanon’s Central bank, also known as BDL.
2.A rundown of events is the following: Current lame duck cabinet had hired Alvarez & Marsal to conduct a forensic audit of the Central Bank where a lot of indiscretions are alleged to have occurred over past 25 years under current BDL Governor
3.BDL refused to fully cooperate claiming that current local banking and bank secrecy laws prevent it from handing over sensitive documents requested by Alvarez & Marsal
4.For background, it is alleged that every major politician and political party have dipped their hands in BDL’s cookie jar one way or another. Some more egregiously than others.
5.Important to note that this drama is happening while incoming Prime Minister-designate Saad Hariri is forming a new cabinet and has been facing obstacles in doing so. His team has accused political party FPM and its leader Gebran Bassil of obstruction
6.Suddenly, there is a leak from an anonymous government official aimed at putting pressure on BDL. Leak was to a very FPM-friendly editor at Forbes Middle East. Leak had a clear political propaganda & misleading angle that was clear to many
2/ First, one point about the leaker. This was clearly leaked from a political side. While I appreciate having this info, this type of stuff should not be leaked and spun in the media. It is unprofessional and hurts the country, and it is misleading in many respects.
— Mike Azar (@AzarsTweets) October 29, 2020
7.Then the FPM-aligned outgoing minister of Justice goes all out defending legality of complying with document requests. One wonders why she didn’t plug any potential legal holes earlier and where was her legal take throughout the process since inception and why she is only now chiming in when damage is done & AV is walking away
8.Then we had BDL countering that government ministries should be the ones audited – indirectly hinting at alleged corruption at FPM-held ministries
Lebanon’s Central Bank: govt should be the one to submit its accounts to audit https://t.co/tRZoPm1UxK
— The Daily Star Lebanon (@DailyStarLeb) November 4, 2020
9.Today, Amal-aligned Finance minister said, ok no problem. We will comply with the document request but give us 3 more months to do so; until cabinet is formed essentially (well-played by the Istez)
#BREAKING Finance Minster says deadline to provide data for BDL forensic audit will be extended by 3 months https://t.co/q7qXQaynDA via @dailystarleb
— The Daily Star Lebanon (@DailyStarLeb) November 5, 2020
10.The conclusion here is that all of this is political theater. Most politicians are deep in shady transactions with BDL. No one wants the audit to happen. Some bring it up now to put pressure on the incoming PM to gain concessions in the new government. No more no less.
11.Best current outcome for the public is for each political party to dig up dirt on opposing parties to repel pressure on itself and put focus on others. More please.
12.Once the government is formed to the satisfaction of FPM then this will go away. If FPM stays out of the government then this campaign will intensify. In all events, I do not think a serious audit will happen while this collective political class is in charge. All those pushing for it know that!
13.I think all government entities, BDL and current & former ministers should be audited. The findings will make most kleptocrats around the world look like amateurs. /end