Audit Bureau Orders Former Ministers to Repay Millions to Public Treasury

Lebanon’s Audit Bureau on Tuesday issued a judicial decision holding several former ministers accountable for financial irregularities related to the leasing and management of the Kassabian building, a government-owned property in Beirut. The decision, communicated to the Secretariat General of Parliament, names former ministers Nicolas Sehnaoui, Boutros Harb, Jamal Jarrah, Mohammad Shukeir, Talal Hawat, and Johnny Qorm.

The ruling concerns a case linked to the lease of a disused building in Beirut’s Chiyah neighborhood, owned by Jean Kassabian, which the ministry rented for $10.5 million on behalf of telecom operator Touch (MIC 2). 

According to the Audit Bureau, former Minister Boutros Harb’s decision to cancel the Kassabian lease spared the public treasury an estimated $20 million, which would have resulted from continuing a contract that provided no benefit to the state or Touch. Harb was therefore exempted from penalties, in line with Article 62 of the Audit Bureau Law.

In contrast, former Minister Nicolas Sehnaoui was condemned for signing the Kassabian lease without a public tender and disregarding objections from his predecessor, who had deemed the building unsuitable and overpriced. The Bureau held him responsible for at least $8.78 million in damages to the public treasury and instructed the current Minister of Telecommunications to issue a collection order against him.

Former Minister Jamal Jarrah was also held accountable for authorizing payments for unjustified building preparation costs, with the Bureau requesting a collection order of $11.3 million from the current telecommunications minister.

The ruling further held former Minister Mohammad Shukeir responsible for agreeing to cancel the lease while arranging a purchase contract without recovering payments previously made under the lease. Former Minister Johnny Qorm was fined $4.92 million due to a shortfall in the number of contracted parking spaces.

Former Minister Talal Hawat was given the maximum penalty under Article 60 of the Audit Bureau Law, but the Bureau suspended enforcement, citing the absence of proven bad faith.

The Bureau also ordered telecommunications company Zain to pay $2.75 million for fiber optic cables it refused to pay for, in violation of official instructions.

The decision concluded by instructing the Ministries of Finance and Telecommunications to implement the rulings within one month, recover public funds, and return 233 parking spaces to state ownership.