Energy Vessels and Fuel Deals Under Criminal Audit, Says Energy Minister

Minister of Energy and Water Joao al-Sadi announced the launch of a criminal audit into power vessel procurement contracts from 2012 to 2017 and related fuel deals, in implementation of the current government's ministerial statement which stated "commitment to criminal and accounting audits in ministries, administrations, and public institutions," given the suspicions and questions raised regarding the leasing of power vessels that operated continuously from 2012 for several years and were repeatedly extended, with reports of contracts, commissions received, and lack of transparency in tender procedures.

Al-Sadi emphasized during a press conference attended by General Manager of the Lebanese Electricity Authority Kamil Hayek and General Manager of Investment on Appointment Fadia Hayek that he took the decision to proceed with the criminal audit in order to remove the file from any political maneuvering and to ensure clarity on the fate of funds paid from the state treasury and returned to the Lebanese people.

Subsequently, al-Sadi outlined the timeline of the criminal audit:

* February 18, 2026: We sent a draft terms document to the General Procurement Board for comments.

* March 2, 2026: The board submitted its comments.

* March 10, 2026: We sent an updated version of the terms document to the board, incorporating its feedback, aiming for final review.

* March 16, 2026: The board acknowledged the content of the document, requesting that the scope of the assignment include, at minimum, the 2012–2017 power vessel contracts and associated fuel deals.

* April 23, 2026: The Council of Ministers approved, under Decision No. 2, the provision of required funding to enable the Ministry of Energy to conduct the criminal audit tender process through the Ministry of Finance, with emphasis on compliance with the provisions of the General Procurement Law during the tender.

* July 27, 2026: A decree was issued transferring budgetary appropriations from the reserve fund to secure the necessary funding for awarding the criminal audit contract.

* August 13, 2026: The Council of Ministers approved the international arbitration clause included in the terms document.

* Today, August 21, 2026: We announce to the Lebanese people the launch of the tender process and the publication of the terms document on the General Procurement Board’s platform.

* The bid opening session is scheduled for October 15, 2026.

Subsequently, the Minister of Energy and Water affirmed that this criminal audit would not be isolated, noting that three days ago, a terms document for a criminal audit tender related to the Jannat Dam and Lake project on the Ibrahim River was published on the General Procurement Board’s platform, submitted by Beirut and Mount Lebanon Water Authority.

Al-Sadi concluded: "We remain committed to this institutional and legal approach because it is the right of the Lebanese people to know how funds were spent and whether there was any waste or corruption, and because the state we are building must be founded on principles of transparency, governance, sound management, and accountability."

Responding to a question, al-Sadi clarified that Article 13, Clause 8, mandates that the estimated value of a procurement project remain confidential before and after the award.

Regarding the comparison made by Bassil claiming that the cost per kilowatt from vessels was 14 cents, from the Electricity Authority 27 cents, and from generators 55 cents, al-Sadi explained that Bassil’s vessels did not operate at 14 cents as claimed, but rather had fluctuating costs consistently higher than the average production cost of the Lebanese Electricity Authority, adding: "According to documented figures from the Lebanese Electricity Authority, for example:

In 2014, the production cost of vessels was 19.71 cents/KM, while Dier Ammar was 17.51 cents/KM and Zahrani was 17.02 cents/KM—both lower, and the largest plants we have.

In 2015, the production cost of vessels was 13 cents/KM, while Dier Ammar was 10.51 cents/KM and Zahrani was 11.10 cents/KM.

Moreover, the cost of leasing vessels over three years exceeded the cost of purchasing them.

Simply put, Bassil’s comparison of production cost to tariff is like comparing fabric price to suit price—the tariff includes production, transmission, distribution, and waste. Noting that even assuming the vessel rate was 14 cents/KM at the time, the electricity tariff for Lebanon was 9 cents/KM—meaning we would have had to increase production by 20% (since that was the capacity of the vessels) to cover losses amounting to millions, effectively draining the pockets of Lebanese citizens and depositors’ funds. I will not enter this file again, as it is now under criminal audit."