Lebanese justice ministry accuses former central bank chief of financial crimes

BEIRUT: Lebanon’s justice ministry formally accused former central bank governor Riad Salameh of financial crimes on Thursday, the state news agency and judicial sources said, echoing charges brought against him by state prosecutors when he was arrested this week.
Salameh, 73, was arrested on Tuesday over alleged financial crimes including illicit enrichment through public funds. Reuters has been unable to reach Salameh or a lawyer for him since his arrest. He has previously denied accusations of wrongdoing.
The justice ministry’s move on Thursday aims to preserve the state’s right to reclaim any public funds which have been embezzled, a judicial source told Reuters.
Salameh’s three decades in charge of the central bank came to an end last year when he left office with his legacy tarnished by accusations of corruption at home and abroad and by the catastrophic collapse of Lebanon’s financial system in 2019.
Protesters rallied in front of the justice ministry on Thursday in support of Salameh’s arrest, calling for him to remain behind bars and burning his picture. The protest was called by Depositors’ Outcry, a group campaigning for the rights of depositors with savings frozen in Lebanese banks.
Financial prosecutor Ali Ibrahim on Wednesday charged Salameh with embezzlement, theft of public funds, forgery, and illicit enrichment, according to the National News Agency and judicial sources.
The authorities have not published the charges against him.
Judicial sources have said he has been held on charges of accruing more than $110 million via financial crimes involving Optimum Invest, a Lebanese firm that offers income brokerage services.
Optimum Invest said on Wednesday it is fully “assisting the judicial authorities in their investigation and provided them with all the information and documents previously requested.”
It said its dealings with the central bank “were conducted in full compliance with applicable laws and regulations.”
The charges brought against Salameh this week are separate from previous charges of financial crimes linked to Forry Associates, a company controlled by his brother, Raja. The brothers — who deny any wrongdoing — were accused of using Forry to divert $330 million in public funds through commissions.
Two judicial sources told Reuters on Wednesday Salameh would remain in detention at least until a hearing is scheduled, probably next week.