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Just a few weeks after Finance Minister Ghazi Wazni signed the forensic audit contract on September 1, the audit firm ran into more than one hurdle. Contrary to what is rumored, “the Central Bank did not only invoke banking secrecy, in its strict sense (the 1956 law), but the confidential nature of the information and also security. It rejected, for example, a request to provide the auditing company with a list of former and current BDL employees with title and position from date 1. January 2015 until now ”, says Dr. Nasri Diab, lawyer and professor of law schools. Additionally, some of the fields assigned to your responses were left blank and others were filled in with “not available”.
It is possible to appeal a criminal audit, but with conditions
The reasons for refusing to answer the questions of “Álvarez & Marsal” were numerous, while the phrase “This information is confidential in accordance with the Monetary and Credit Law, please refer to the attached letter addressed to His Excellency Mr. Minister of Finance in this regard “, which dominates most of the responses from the Central Bank. His argument in favor of the non-disclosure of the information included in the banking secrecy is article 151 of the Currency and Credit Law, which explicitly states: “Any person who belongs or has belonged to the Central Bank, whatever their capacity, must hide the secret established by the law of September 3, 1956. Includes This obligation includes all the information and all the facts related not only to the clients of the Central Bank, banks and financial institutions, but also to all the aforementioned institutions, of which he became aware of his affiliation with the Central Bank. And based on the fact that “the Central Bank has a relationship with the public and private sectors represented by the State and its institutions on the one hand, and commercial banks on the other hand, it is difficult for us to consider the public sector as a Banque du Liban customer. This is different from commercial banks that have a relationship with the Banque du Liban that is subject to commercial laws, “he says. Diab. Therefore, bank secrecy may not apply to the accounts of the public sector and its institutions, which should form the heart of the criminal audit.
The bank secrecy dilemma that threatens to topple criminal scrutiny is solved very simply from Diab’s point of view. Instead of being distracted by sterile legal debates, wasting time probing non-binding opinions from the Commission on Legislation and Consultation, or even adopting bills related to the lifting of bank secrecy in the House of Representatives … the state can vent it all. this problem with quick and easy action. The contract with “Alvarez & Marsal”, that is, the Ministry of Finance, to send to the Banque du Liban a letter consisting of one sentence: I raised the bank secrecy of my accounts. Then this problem will be solved from Diab’s point of view. “The investigation has resumed its normal course. Especially since the financial accounts are the most important and include a summary of the accounts of the different ministries, institutions and financial contracts that have been concluded with the Lebanese State. In this way, Everyone is faced with their responsibilities. It is not logical, fair and just to place all the burden and responsibility of the audit process solely on the Banque du Liban. How the audit should affect all the State accounts. Whoever decides to carry out the audit , that is, the executive authority must do whatever is necessary to complete the process. It is not enough to sign the contract with “Alvarez & Marsal”, but rather it must facilitate the mission of the company. In the event that the Ministry of The Treasury does not initiate such a procedure, then “the contracting period with the company will expire before a solution is found,” Diab responds. Lebanon will lose one of the most important conditions. tantes for reform and one of the demands of the International Monetary Fund, which insists on conducting a criminal audit.
“Financial” mine!
Contrary to the view that the reason for the failure of the criminal audit is attributed to the fact that the contract signed with “Alvarez & Marsal” included a mine subject to the laws in force in Lebanon only by the Minister of Finance, Diab believes that the matter is a major fallacy. Lebanon is interested in the contract being subject to Lebanese law rather than foreign law, such as the laws of the United Arab Emirates, where the company’s headquarters are located. The contract also included the law that must apply to the contractual relationship between the state and the company, which is English law. “The key to the solution and the connection is in the hands of the Ministry of Finance,” Diab said. “It is the most capable party to eliminate all the mines and join the company by renouncing its bank secrecy. If you did, it was with him, and if you didn’t, then there is no scrutiny, and neither are those who rejoice. “
Source: Nidaa Al Watan
