Lebanon's former central bank chief arrested over financial crimes

By AJP Posted : September 4, 2024, 10:37 Updated : September 4, 2024, 10:49
 
Riad Salameh speaks during a news conference in Beirut Lebanon in this file photo taken on November 11 2019 Reuters-Yonhap
Lebanon's ex-central bank governor Riad Salameh speaks during a news conference in Beirut, Lebanon, in this file photo taken in November 2019. Reuters-Yonhap
SEOUL, Sept. 4 (AJP) - Lebanon's former central bank governor, Riad Salameh, has been detained following a hearing at the country's judicial palace, according to state media.

It is reported that public prosecutor Judge Jamal al-Hajjar ordered the arrest of the 73-year-old Salameh after questioning him on Tuesday. This is the first time Salameh has appeared before Lebanon's judiciary since stepping down as governor of the central bank, Banque du Liban, in July last year.

Salameh, who led the central bank for 30 years, has faced numerous allegations of financial misconduct in recent years. He is accused of illegal enrichment through public funds, with investigations being conducted by authorities in Lebanon and several other countries. France has also issued a warrant for his arrest, prompting Interpol to release "red notices" against him. However, Lebanon does not extradite its citizens.

Salameh has been widely blamed for Lebanon's financial collapse that began in late 2019, but he denies all allegations, asserting that his wealth is derived from inherited properties, investments, and his previous career as an investment banker at Merrill Lynch.

According to anonymous judicial officials, Salameh was questioned for more than three hours on Tuesday. The interrogation focused on various financial issues, including accusations that he hired a company named Optimum to falsify financial statements and hide Lebanon's worsening financial situation.

Judicial sources told Reuters that Salameh is accused of accumulating over $110 million through financial crimes involving Optimum Invest, a Lebanese firm providing brokerage services. The charges that led to his arrest include embezzlement, money laundering, and fraud related to commissions earned from central bank dealings with Optimum between 2015 and 2018.

Lebanon's Internal Security Forces transferred Salameh to a more secure location, with further details undisclosed. He is expected to remain in custody for ongoing questioning.

Caretaker Justice Minister Judge Henry Khoury stated that the judiciary's decision would be respected, while Caretaker Prime Minister Najib Mikati assured that the government would not interfere in the case.
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