Lebanese Ministry of Finance: A Cash Cow for All

The lack of physical and technological security at the Lebanese Ministry of Finance is likely encouraging theft and fraud, a recent audit report obtained by Al-Akhbar has shown.

In a country where petty politicians are afforded the greatest measure of security, the building that houses the most sensitive financial data of the Lebanese state is not afforded the same drastic measures. According to a report obtained by Al-Ahkbar compiled by Oracle, a California based multinational corporation that is a global leader in developing databases, startling conclusions are reached concerning security protocols at a vital Lebanese government ministry. The report, entitled “Road to GFMIS (government financial management information system”), details how the Lebanese Ministry of Finance is exposed to theft and fraud. The report’s aim was to provide suggestions on how “to attempt to improve, streamline, [and] control fiscal matters” by introducing a new IT system to the ministry. But, the report’s true worth is its documentation of the mismanagement that exists in the day to day operations of the ministry.

The work of the Ministry of Finance is being obstructed at every corner by bureaucracy and an IT system that presents more problems than solutions.

The report is a sales pitch on behalf of Oracle and their innovative products. Sifting through pages that are riddled with the shortcomings of the current IT system, it becomes clear that the Lebanese Ministry of Finance is the one who will have to do the convincing on any potential collaboration. Should Oracle and the Government of Lebanon come to an agreement on placing the Ministry on the road to the 21st century, the company can look forward to a healthy workload for many years to come.

The Human Factor

One of the most damning assertions the report makes is that the ministry relies too heavily on manual labor, most importantly the irreplaceable IT administrator. His/her presence is vital because with respect to all cash transactions of the ministry, “the IT administrator is the only person with full knowledge of the system” and “the departure or absence of the administrator could lead to disastrous consequences.”

While the statements from the report may seem comical, the reality is far from a laughing matter. The IT systems that are currently in place at the Ministry of Finance depend on a small group of overworked and poorly trained staff because there are no reference documents on how the system works. Also, the current IT system is designed in a way that relies heavily on manually entering data with no alerts or alarms if the entry is done twice or incorrectly. Prior to the year 2000, the computers of the Retirement Disbursement Bureau could be easily accessed because employees did not need a username or password. Currently, many of the servers that store data for the ministry share the same username and password.

The reliance on constant “human intervention” may result in some avoidable mistakes, which are difficult to identify because not all activities are tracked or recorded. These cracks in the system manifest themselves through the lack of automated checks and readily available access to sensitive data. This leaves the ministry exposed to various forms of fraud and corruption.

An Open Playground

The physical security of the IT building at the Ministry of Finance is as vulnerable as the archaic system it houses.

Any passerby can enter the building freely due to the shocking absence of security checks at the entrance which is conveniently left unmanned occasionally. The comfort of potentially camera shy visitors has also been taken into consideration because there are no electronic devices to visual document the entrance of the building. Once inside a person can walk in without registering his/her name and can bring a laptop, flash memory drive, or CD inside if they wish. Employees are afforded a similar courtesy to the general public with the freedom to enter any area of the IT building as a security clearance is not currently required. Past employees may be able to benefit from a forgetful HR department because it is unclear whether or not they can access the system.

Oracle does not document any specific examples of physical theft or manipulation of ministry data. The report does outline every possible method one could use to commit theft and fraud or worse devise a scheme to kidnap the IT administrator and cause irreparable damage.

A Ministry in Ruins

How has the Ministry of Finance been left to operate in such ineptitude all these years? The Ministry is incapable of performing its most basic responsibilities like monitor international aid, public debt, or the finances of the government of Lebanon.

Monitoring aid and public debt is divided between two organizations that share equal freedom from oversight: the Council of Development and Reconstruction and the Central Bank of Lebanon.

Timid and sporadic criticisms by international organizations has done little to dissuade the Government of Lebanon from adhering to financial accountability and internationally accepted standards.

A finance ministry should be the engine that powers the state, navigating through the turbulent waters of the global economy with stoicism and ingenuity. The Lebanese Ministry of Finance has been left to resemble an old weary accountant who clutches a general ledger and uses it as a shield from the realities of efficiency and progress.