Former Lebanese Central Bank Governor Riad Salameh Detained Amid Corruption Investigations

Former Lebanese Central Bank Governor Detained Amid Corruption Investigations

The former governor of Lebanon’s central bank, Riad Salameh, was taken into custody on Tuesday following a questioning session by Lebanese authorities, as confirmed by the country’s general prosecutor, Judge Jamal Hajjar. Salameh has been embroiled in a series of corruption investigations both locally and internationally.

According to one of his attorneys, Hafez Zakhour, Salameh had anticipated being summoned as a witness rather than a suspect, making the arrest unexpectedly shocking. Zakhour remarked, “My client was supposed to be a witness. I don’t know why he was detained.” Attempts to reach the lawyer representing Salameh in the specific case for which he was questioned were unsuccessful.

Lebanon’s Minister of Justice, Henry Khoury, announced that Salameh would remain in custody for four days before undergoing further questioning. He indicated that the outcome of this subsequent interrogation could determine whether Salameh would remain incarcerated.

Once celebrated for his role in steering Lebanon’s economic resurgence post-civil war, Salameh has faced mounting scrutiny as the Lebanese economy has deteriorated sharply. Following numerous investigations into his leadership at the bank, he resigned from his position last year after three decades of service.

This marked the first time Salameh had been jailed. Khoury revealed that Salameh was questioned regarding allegations linked to Optimum, a Lebanese brokerage firm.

Once regarded as a financial savant on an international scale, Salameh’s reputation has plummeted as many Lebanese citizens have shifted blame towards him for their economic hardships. Accusations have surfaced of his extravagant lifestyle, particularly highlighted by an opulent wedding he hosted for his son in France, which drew widespread backlash.

As the financial crisis deepened, many individuals witnessed their life savings dissipate, with those holding dollar deposits finding themselves unable to access their own funds. The middle class has faced a stark plunge into poverty.

Numerous economists and analysts have pointed to Salameh’s central bank policies as significant contributors to Lebanon’s financial disaster, compounded by the rampant corruption and mismanagement prevalent among the nation’s political elite. In addition to local inquiries, prosecutors in France, Germany, and Switzerland are examining Salameh and his associates for alleged financial crimes, including the laundering of at least $330 million.

In a significant move, the United States, Britain, and Canada froze Salameh’s assets last year, accusing him of exploiting his official position to amass wealth for himself, his family, and friends by directing hundreds of millions into luxurious European real estate through a network of shell companies.

Currently, he finds himself in a Beirut jail, having undergone questioning without the presence of his lawyer, according to Zakhour.

In previous statements, Salameh has consistently denied any wrongdoing, asserting that he has worked diligently to stabilize the national currency and combat corruption. He attributes his wealth to inheritances, his former career as a banker at Merrill Lynch, and various investments, claiming he is being unfairly scapegoated for Lebanon’s ongoing financial crisis.