Former Central Bank Governor of Lebanon Arrested on Corruption Charges

Lebanese judicial authorities announced that the former governor of the country's central bank has been arrested after being summoned to the office of the Attorney General of Lebanon in connection with investigations into several corruption cases. Riad Salameh, a Lebanese economist, served as the governor of the central bank from 1993 to 2023 and is considered a controversial and contentious manager. Mr. Salameh was praised for his significant role in reviving Lebanon's economy after a long civil war, but following investigations by several European countries regarding corruption allegations during the last years of his governorship, he was forced to resign last year. Many in Lebanon hold him responsible for the severe financial and economic crisis that began in 2019. Riad Salameh has consistently denied allegations of involvement in financial corruption, embezzlement, and illegal enrichment, asserting that his wealth comes from family inheritance, personal investments, and his income during his employment at Merrill Lynch investment bank. According to three judicial sources who requested anonymity, the Attorney General of Lebanon interrogated Mr. Salameh for three hours on Tuesday, September 4. The International Monetary Fund has stated that Lebanon's reforms are insufficient to exit the economic crisis. These sources told Agence France-Presse that the interrogation focused on several investigations related to financial matters and the management of the central bank in recent years. One of these cases involves hiring a consulting and accounting firm named 'Optimum,' which, according to judicial authorities, aimed to conceal the financial losses and disastrous state of Lebanon's financial system. Judicial officials stated that Lebanon's Internal Security Forces have transferred Riad Salameh to a secure prison, but they did not provide further information on this matter. Apparently, he will remain in prison until the end of the interrogation period. It is expected that Jamal Hajjjar, the Attorney General of Lebanon, will issue an indictment against Mr. Salameh in the coming days. Following that, the case will be assigned to an investigative judge. Riad Salameh is one of the senior Lebanese officials most blamed for the economic and financial management that led to the current crisis. Over the past five years since the onset of Lebanon's economic crisis, the national currency's value against the US dollar has decreased by about 90%, and inflation rates have reached several hundred percent. The governments of the United States, Canada, and the United Kingdom have sanctioned Riad Salameh and his senior associates, and France has also issued an arrest warrant for him. However, the Lebanese government does not extradite criminals and defendants to other countries. France, Germany, and Luxembourg have also filed legal cases against Mr. Salameh and his advisors for illegal enrichment and money laundering involving $300 million. Riad Salameh has criticized the judicial investigations by European countries, describing them as a political and media campaign aimed at portraying him as the scapegoat. Since Riad Salameh's resignation in the summer of 2023, Waseem Ahmad Mansouri has been appointed as the interim governor of the Central Bank of Lebanon.