Lebanon cracks down on corruption in Energy Ministry contracts

The Courts of Audit have fined Free Patriotic Movement MP Cesar Abi Khalil for bypassing legal and financial procedures when awarding a contract to a Saudi consulting firm during his tenure as Lebanon’s energy minister.

According to the court, the minister granted Poyry Switzerland Ltd a contract through a “direct agreement,” ignoring the legal procurement process and violating the 2017 government decision outlining proper tender procedures. The decision also circumvented mandatory oversight, including the Courts of Audit’s advance audit and the director-general of investment, who is legally responsible for setting up a receiving committee for such contracts.

While the company itself breached Lebanese tax laws, the court emphasized that the minister’s negligence in following the law made him accountable. During hearings, he argued that Lebanon’s 2017 electricity crisis justified skipping standard procedures and that the company had previously been contracted with court approval.

The court rejected these defenses, noting that the crisis was known in advance and that every contract must independently comply with the law. Past approvals do not grant blanket exemptions for future agreements.

As a result, the minister was ordered to pay the maximum fine of LL 1,500,000. The ruling has also been referred to the Public Prosecution of the Court of Audit and to Parliament, potentially opening the door for further legal action.

The Free Patriotic Movement has not yet issued a response to the decision.