BEIRUT: A preliminary forensic audit report has slammed the governance at Lebanon’s central bank and its long-serving former governor Riad Salameh, western media reported on Friday.
The report prepared by professional services firm Alvarez & Marsal (A&M), found irregularities in the functioning of the bank.
Lebanon, since 2019, has been facing an economic crisis but the officials have largely failed to take any step to improve the financial system of the country to avoid the risk of collapse.
Lebanon Central Bank, Governor Slammed in Audit Report
The creditors have long been demanding the audit report as Lebanon seeks bailout funds.
The AFP citing the report, said the financial position of the central bank worsened between 2015 and 2020.
According to the report such deterioration was not reported in the bank’s balance sheets.
These strategies allowed the central bank to exaggerate assets while understating liabilities.
The report termed former governor Salameh as a key culprit in the country’s dramatic economic crash.
Recently Britain, Canada and the United States have announced strict sanctions against the 73-year-old, Salameh for committing financial crimes. He, however, rejected all charges against him.
In 2015, he launched so-called financial steps to enhance central bank reserves.
