Saudi Press

Saudi Arabia and the world
Wednesday, Jun 04, 2025

As corruption probes converge, support for Lebanon cbank governor frays - sources

As corruption probes converge, support for Lebanon cbank governor frays - sources

Top-level political backing for Lebanon's central bank governor Riad Salameh is starting to fray, political sources say, as the veteran financier once hailed as a banking wizard faces several corruption investigations in the waning months of his tenure.

The apparent cooling of support raises questions over the impact the investigations could have on the wider political class, given the widely-held view that members of the ruling elite fear his downfall would have repercussions for them.

Salameh, 72, has been summoned for a hearing on Wednesday as part of Lebanon's probe into whether he and his brother embezzled hundreds of millions of dollars in public funds, a claim at least five European countries are also investigating.

He denies the charges and says they are part of an attempt to scapegoat him for Lebanon's historic financial crisis, which has destroyed the savings of generations since 2019.

Many blame Salameh along with ruling politicians, whose interests he long served as steward of the financial system.

Viewing Salameh as a burden, some of his long-time allies are now distancing themselves from him, say political sources, who declined to be identified due to the sensitivity of the subject.

Salameh, governor for three decades, said in February he would not seek a new term once his current one ends in July.

His departure will mark a milestone in the financial meltdown which resulted from decades of profligate spending, corruption and unsustainable financial policies by leaders who have left the crisis to fester since 2019.

Once a regular at banking summits and chic restaurants in Europe, he now restricts his movements and is rarely seen in public, except for semi-regular television interviews defending his record.

Concrete t-walls surround the central bank building in Beirut, covered in anti-Salameh graffiti. He is living in a secured apartment inside and rarely leaves, according to a source close to him who has visited him.

To attend a meeting at the government's headquarters, he was sent an armoured car, brought into the premises through a secret door and left quickly before news of his presence spread, a source with knowledge of the meeting said.

Another source with knowledge of Salameh's interactions with the political elite said he had been "very tense recently". A close friend said he was seriously considering leaving Lebanon once his term ends.

"He'll either go to the Gulf or Europe," the close friend said, adding that Salameh was confident European investigators would eventually clear him of wrongdoing.

Salameh did not respond to questions from Reuters on the sources' accounts of his isolation.


'HE IS THE DOMINO'


European officials have not yet questioned the Salamehs directly and have not filed formal charges. Raja has also denied any wrongdoing.

They will be allowed to attend Wednesday's hearing in Lebanon, where a judge charged the Salameh brothers with financial crimes last month.

But critics have long doubted whether ruling politicians, who exercise major sway over the judiciary, would allow him to be prosecuted in Lebanon: Salameh has been the linchpin of a financial system from which they benefited for decades.

"He is the domino. If he falls, everything falls," said the source with knowledge of Salameh's political ties.

"He knows most of their financial secrets," wrote Ibrahim Al-Amin, editor of al-Akhbar newspaper, which has long been critical of Lebanon's financial policies.

Salameh has worked hand-in-glove since 1993 with powerful figures including the Shi'ite Parliament Speaker Nabih Berri and a series of Sunni prime ministers, among them Saad al-Hariri.

A long-term occupant of a post reserved for a Maronite Christian in Lebanon's sectarian power-sharing system, he has also enjoyed the backing of Christian religious authorities.

But there are signs his political backing is waning.

Prime Minister Najib Mikati, a billionaire businessman, told local broadcaster Al-Jadeed he would not propose an extension of Salameh's term. "(Salameh) doesn't want to (continue), and for us I believe it is difficult," he said.

A political source said Mikati would no longer back him. "It's over for Riad Salameh," the source said. Mikati's office declined to comment and referred Reuters to the Al-Jadeed interview.

A source from the Amal Movement, headed by Berri and seen as one of Salameh's main traditional backers, said if Salameh is involved in corruption, he should be tried fairly.

"We never cover anyone," the source added.

Lebanon's powerful Hezbollah has said it is against a term extension.

"The politicians for whom he did so much now see him as a burden, and they are distancing themselves from him little by little," a second political source said.

In January, the U.S. Treasury sanctioned a Lebanese money exchanger over alleged ties to Hezbollah, saying he had advocated for his exchange firm to the central bank governor.

Two bankers said the reference to Salameh's post was seen as a message from Washington that he was "not untouchable."

Salameh's enforcement of U.S. laws targeting Hezbollah finances had helped win supporters in the West. The U.S. Treasury declined to comment.

"It would be wise for him not to stay on" when his term ends, a Western diplomat said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
×