Lebanon’s former central bank governor detained in corruption probe

Author of the article:

Associated Press

Kareem Chehayeb

Published Sep 03, 2024  •  2 minute read

Riad Salameh the governor of Lebanon's Central Bank, listens to a journalist's question during a press conference, in Beirut, on Nov. 11, 2019. Photo by Hussein Malla /THE ASSOCIATED PRESS

BEIRUT — Lebanon’s controversial former central bank governor was detained Tuesday after being questioned in several corruption cases, according to three judicial officials.

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Salameh served a 30-year term as central bank governor beginning in 1993.

Though he was widely celebrated for his role in Lebanon’s economic recovery after a 15-year civil war, Salameh left his post last year under a cloud, with several European countries probing his alleged financial crimes. He was blamed by many in Lebanon of being responsible for the country’s financial crisis since late 2019.

Salameh has repeatedly denied allegations of corruption, embezzlement and illicit enrichment. He insists that his wealth comes from inherited properties, investments and his previous job as an investment banker at Merrill Lynch.

Salameh was questioned Tuesday by the top public prosecutor, Judge Jamal Hajjar, for over three hours, according to the three officials who spoke on condition of anonymity because they were not authorized to discuss the case with the media.

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Salameh was interrogated over several financial matters, including a case in which he allegedly hired a company called Optimum to manipulate financial statements and conceal Lebanon’s haemorrhaging financial losses.

The officials said that Lebanon’s Internal Security Forces transferred Salameh to a more secure prison but did not disclose further details. He is expected to remain in custody while he is interrogated. Hajjar is expected to file charges against Salameh in the next few days, after which his case will be transferred to an investigative judge.

Salameh has been among the officials most blamed for policies that led to the country’s economic crisis, which has decimated the value of the Lebanese pound by around 90% against the U.S. dollar and sparked triple-digit inflation.

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The U.S., the U.K, and Canada have sanctioned Salameh and his close associates, and France issued an international arrest warrant against him, though Lebanon does not extradite citizens.

France, Germany, and Luxembourg also are investigating Salameh and close associates over alleged illicit enrichment and the laundering of $330 million.

Salameh has criticized the European investigation and said it was part of a media and political campaign make him a scapegoat.

Lebanon has not appointed a new central bank governor, but a vice governor, Wassim Mansouri, has been named acting governor. The crisis-hit country has also been without a president for almost two years and is run by a caretaker Cabinet with limited functions.

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