The acting governor of the Central Bank of Lebanon and Chairman of the Board of the Financial Markets Authority, Wassim Mansouri, has extended his decision, which presented the Board of Directors and employees of the Financial Markets Authority with the option of voluntary resignation to benefit from severance pay, or mandatory leave, otherwise they would be considered automatically resigned. The deadline has been extended from January 10 to January 31, as reported by "Nidaa Al-Watan."
This extension comes in light of preparations to appeal Mansouri's decision to liquidate and close the authority, made in December of last year. The Board of Directors, the General Secretariat, and employees of the authority have appointed lawyer Dr. Pascal Fouad Dahir to prepare the appeal before the State Council. The decision to extend the resignation period for the 45 employees does not indicate a reversal of the decision, according to legal sources, as the cabinet in its last session refused to allocate funds (one million dollars) to ensure its continued operation. This required funding arose due to reduced revenues during the crisis and the cessation of banks and financial institutions from paying their obligatory contributions.
Dr. Sabine Al-Kak, an academic and researcher in business and banking law, stated to "Nidaa Al-Watan" that the extension concerns the resignation submission period, and it is unclear whether the decision has been entirely suspended or not. She added, "I do not know if there has been hesitation from Governor Mansouri and the members who participated in the decision, especially since it is not correct and has procedural and substantive flaws that are certainly subject to appeal before the State Council, because the Financial Markets Authority was established by law, and it cannot issue a decision that negates its existence; rather, it must be liquidated in accordance with the law."
She further mentioned, "From an organizational perspective, the State Council should have been consulted prior to making the decision, and the key issue is the reasons they consider justifying the suspension of the authority's work and its liquidation during a certain period, stating that there is no funding from the state, whereas the authority, according to its organizing law, has its own funding sources, and state funding to it is limited to the initial establishment period."
It is worth noting that the authority was established by law in 2011, with activities including enhancing and developing capital markets, protecting investors from fraudulent activities, ensuring appropriate oversight and auditing of all institutions dealing with financial instruments, and enhancing integrity while maintaining attractiveness to investors. The Board of Directors of the Financial Markets Authority is comprised of 7 members, led by the governor of the Central Bank of Lebanon, with the general director of the Ministry of Finance (currently vacant), the general director of the Ministry of Economy, the head of the Banking Control Commission, in addition to 3 experts in stock exchanges, finance, and banking.
