Lebanon’s Ex-Central Bank Governor Arrested in Corruption Investigation

Lebanon’s former central bank governor, Riad Salameh, was detained on Tuesday amidst ongoing investigations into various corruption allegations. This development comes as multiple European nations scrutinize his financial dealings.

Salameh held the position of central bank governor for three decades, a tenure that commenced in 1993. While he was once credited with aiding Lebanon’s economic recovery following the devastating civil war, his departure from the role last year was marred by serious accusations of financial misconduct.

Since late 2019, Lebanon has been grappling with a severe financial crisis, with many citizens blaming Salameh for policies they believe contributed to the economic turmoil. In the wake of these challenges, the Lebanese pound has plummeted in value, losing approximately 90% of its worth against the dollar, resulting in soaring inflation rates.

Salameh has consistently refuted claims of corruption, embezzlement, and illicit enrichment. He attributes his wealth to inheritances, investment ventures, and his prior experience as an investment banker with Merrill Lynch.

During a lengthy interrogation of over three hours conducted by Lebanon’s top public prosecutor, Judge Jamal Hajjar, Salameh faced questions regarding several financial matters. Reports indicate that one focus of the investigation is an allegation that he employed a firm named Optimum to skew financial statements in an effort to obscure the extent of Lebanon’s financial losses.

After his questioning, Salameh was moved to a more secure prison facility by Lebanon’s Internal Security Forces, yet details about this transfer remain sparse. It is anticipated that he will stay in custody as further interrogations take place.

Internationally, Salameh has become a target of sanctions imposed by the United States, United Kingdom, and Canada. Additionally, France has issued an arrest warrant against him, although Lebanon has a policy against extraditing its citizens. Other European countries, such as Germany and Luxembourg, are also investigating Salameh and his associates for alleged illicit enrichment and the laundering of approximately $330 million.

Salameh has publicly criticized these European inquiries, claiming they are part of a systematic effort to portray him as a scapegoat for the ongoing crisis in Lebanon. His consistent denials of the allegations have not stifled the mounting pressure he faces both domestically and internationally.

Currently, Lebanon is in a state of political and economic disarray, lacking both a president and a fully functional central bank leadership. While a vice governor, Wassim Mansouri, has been appointed as the acting governor of the central bank, the future of the country’s financial governance remains uncertain amidst these turbulent circumstances.

The investigations and detainment of Salameh highlight the broader issues of corruption and mismanagement that have plagued Lebanon for years. As the country continues to struggle against a backdrop of economic collapse, the ramifications of Salameh’s alleged actions may soon be more thoroughly assessed in the courts.

The unfolding events surrounding Salameh’s alleged corruption cases are closely monitored by many within Lebanon and abroad, as they represent a critical juncture in the ongoing fight against financial misconduct in the nation.