BDL’s Forensic Audit & Ways Forward

On April 30, our Institute hosted a discussion on “BDL’s Forensic Audit & Ways Forward,” drawing from the in depth analysis by Dr. Gaspard published by the Institute. The analysis highlighted the findings of the Alvarez & Marsal's Audit Report on the Banque du Liban (BDL), exposing its governance issues, arbitrary accounting methods by the Governor, and questionable financial practices. The discussion delved into the details of the audit, and the urgent actions for financial recovery, while emphasizing the need for responsible political leadership to execute necessary reforms for recovery. Alongside Gaspard, the discussion included former BDL Vice Governor Dr. Ghassan Ayache, and moderated by Journalist and Economic Columnist Mounir Younes.

Gaspard kickstarted the discussion by highlighting three critical issues that shouldn’t go unnoticed: the need for pinpointing the individuals responsible for the crisis, assessing the current financial status of the BDL, and exploring feasible solutions to get the country on the path of recovery. He emphasized the severity of the banking collapse in Lebanon, describing it as one of the most significant global financial collapses in recent history, with losses tripling the nation's GDP.

Meanwhile, Ayache commended Gaspard's investigative efforts, noting that the BDL’s financial engineering aimed at maintaining the peg of the Lebanese Pound to the dollar at any cost, often in close cooperation with government officials. He advocated for holding CEOs of banks accountable, especially those who profited from this scheme throughout the years.

The panel underscored the urgency of ongoing research, the necessity of legal accountability, and the inevitable and important influence of political actions on any substantive recovery solutions for Lebanon's financial crisis.
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You can read Gaspard’s analysis in English and Arabic.