Alvarez & Marsal says it is unable to complete Lebanon forensic audit

Restructuring consultancy Alvarez & Marsal (A&M) confirmed on Thursday that it had withdrawn from a forensic audit of Lebanon’s central bank as it had not received the information required to carry out the task.

The decision, first announced by Lebanon’s caretaker finance minister on Nov. 20, is a blow to Lebanon as the audit is a key demand of foreign donors to help it exit a financial meltdown, the country’s worst crisis since its 1975-1990 civil war.

“Due to the insufficient provision of information, A&M is unable to complete its review,” the consultancy said. Its decision came after the finance minister had on Nov. 5 announced a three-month extension to secure the data required after the central bank declined to hand over all the information, citing bank secrecy rules.

“In meetings held on 4 and 5 November the Ministry of Finance and Banque du Liban confirmed that the information A&M requested would not be forthcoming in the near future,” the firm said.

The Finance Ministry issued a statement “categorically denying” this account and said that A&M had attended a meeting on Nov. 5 at the presidential palace where it agreed to an extension of the deadline to secure the information.

A&M said in its statement that it remained available should the government consider re-engaging it “under circumstances more conducive to a successful comple

tion of the mandate.” President Michel Aoun has pledged to revive the audit, blaming “interest-driven roadblocks” for derailing it and saying that it is needed so Lebanon does not become a “failed state in the eyes of the international community.”

This week he asked parliament to move on the matter and the parliament speaker has set a session for Friday to discuss the issue.