Prime Minister Nawaf Salam has directed ministries and public institutions to undergo financial audits conducted by private firms, a move that has raised questions about its feasibility and impact on corruption. While the decision has been described as a necessary step toward transparency, concerns persist over its implementation and the capacity of Lebanon’s existing oversight bodies.

Patrick Mardini, an economist and director of the Lebanese Institute for Market Studies, welcomed the initiative, emphasizing the need for financial scrutiny in key ministries.

"Financial audits are essential for all ministries and public institutions, particularly those with a history of irregularities, such as the Ministries of Public Works, Telecommunications,  and Energy," Mardini told Annahar. "These entities have long been at the center of major public contracts and have faced allegations of significant financial mismanagement. And that’s not even mentioning the various government councils and funds—institutions notorious for their lack of transparency."

The audits, however, will not be conducted by Lebanon’s State oversight agencies but by external firms, a detail that has sparked debate.

Mardini noted that while Lebanon has local regulatory bodies tasked with financial oversight—including the Court of Accounts, the Central Inspection Authority, and the Public Procurement Authority—these institutions lack the resources to carry out large-scale audits.

"What stands out in this decision is that the audits will not be handled by Lebanon’s own State agencies," he said. "The Public Procurement Authority is the most active among them, but it only reviews procurement bids. As for the Court of Accounts and the Central Inspection Authority, they lack the capacity to conduct comprehensive financial audits. Given these limitations, outsourcing the audits to private firms seems like a practical move."

At the same time, he stressed the importance of strengthening Lebanon’s domestic oversight mechanisms.

"Ideally, we should be building our own financial oversight institutions so they can take on this role effectively. A well-functioning State should have the institutional capacity to audit its finances and hold its ministries accountable."

Beyond transparency, the success of the audits will depend on whether they lead to concrete reforms. Mardini argued that auditing is particularly necessary for failing sectors that the government has struggled to manage.

"A possible outcome of these audits is the realization that some sectors may be better off under private management," he said. "Take Electricité du Liban (EDL), for instance: It operates multiple power plants, yet only three function efficiently. The state could consider privatizing the underperforming plants, but such a decision must be based on a transparent financial assessment."

The broader goal, he added, should be establishing long-term financial accountability across government institutions.

"Audits are the first step in helping the State understand the financial standing of each institution. Only then can real reform decisions be made. The process is critical for combating corruption and promoting transparency," Mardini said. "Just as private companies are required to publish annual financial statements and undergo audits, public institutions must be held to the same standard. The rampant corruption in Lebanon’s public sector needs to be systematically addressed."

For real accountability, he argued, Lebanon must go beyond individual audits and ensure that the state budget itself is transparent and verifiable.

"What we ultimately need is greater scrutiny of the national budget. Lebanon should publish an updated budget accompanied by a closing balance sheet, which, at the very least, should be audited by the Court of Accounts. Without such measures, real accountability remains elusive."