Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

Fresh chaos in Lebanon as central bank boss charged with fraud and embezzlement

Fresh chaos in Lebanon as central bank boss charged with fraud and embezzlement

Lebanon’s political and economic meltdown descended into farce on Thursday when the head of the central bank was charged with embezzlement, money laundering and tax evasion.
Investigating judge Raja Hamoush filed the charges against Riad Salameh, governor of the Banque du Liban, his brother Raja and an adviser, Marianne Hoayek. Hamoush referred the case to Investigative Judge Charbel Abou Samra.

The charges follow an 18-month investigation by Lebanese authorities into allegations that Salameh and his brother embezzled more than $300 million from the central bank between 2002 and 2015. Judicial authorities in at least five European countries are investigating similar allegations.

The brothers deny the charges. Riad Salameh said the accusations of illicit enrichment are part of an effort to scapegoat him for Lebanon’s financial collapse, which has brought increased scrutiny of his role as governor. The head of the central bank since 1993, he still enjoys backing from powerful Lebanese leaders.

He said the charges were “not an indictment” and pledged to abide by judicial procedures. “One is innocent until proven guilty by a court of law,” he said.

A judicial source told Arab News the investigation began in January 2022, when Salameh was summoned three times for questioning at the Justice Palace in Beirut.

The investigating judge is now likely to again summon Salameh for questioning, according to the source, and would have a number of options including detaining the governor or releasing him on bail.

Many judges in Lebanon owe their appointments to politicians and their decisions are often overtly politicized. The judicial source told Arab News the charges against Salameh were in part political retaliation for an order on Wednesday by caretaker Prime Minister Najib Mikati that instructed police and security forces to ignore instructions from Judge Ghada Aoun, who is investigating banking crimes.

Mikati had sent a letter to Interior Minister Bassam Mawlawi in which he said said Aoun had overstepped her authority and “committed violations in lawsuits relating to banks, had previously refused the warrants issued against her and ignored all the dismissal requests made against her.”

Aoun responded by describing the prime minister’s edict as “unprecedented interference in the work of the judiciary.” She is prosecuting several Lebanese banks over money-laundering allegations, based on lawsuits filed by activists from the Pioneers of Justice organization.

The judicial source told Arab News: “Judge Aoun is affiliated with the Free Patriotic Movement and is politicized, and it seems that the movement decided to respond to Mikati’s move by pushing for action on another judicial file, which is the one with Judge Hamoush.”

Nicolas Nahas, an adviser to Mikati, said Mikati and Mawlawi made their decision because they believe Aoun’s actions are significantly flawed.

“The public prosecutor had previously issued a decision prohibiting her from interfering with the files she is investigating but she didn’t abide by it,” he added.

The Amwalouna Lana association held a protest outside the Justice Palace in Baabda on Thursday in support of Aoun. Activists held signs that read “No to political interference with the judiciary” and “No to the punishment of those who have the courage to face the corrupt people.”

Aoun’s spokesperson, lawyer Pascale Fahd, said the judge “continues in her work and performs her duties in the case of depositors and banks and combating money laundering.”

The lawyer added: “The decision taken against her is illegal and does not stop her work. Judge Ghada Aoun has the appropriate and legal ways to implement arrest warrants. She will not watch the Lebanese people being stolen from, nor will she stand by as our prime minister takes the side of those who stole from us, and protects them.”

The Lebanese Judges Club, an activist group that emerged during the current political deadlock, criticized “the blatant interference in the judiciary, which constitutes a dangerous precedent that violates the most basic legal principles, and should be retracted immediately without delay.”

Salameh current term as governor is due to end in July and he has said he does not intend to remain in the post. The Free Patriotic Movement tried to replace Salameh as governor during former President Michel Aoun’s time in office but other parties rejected the attempts.

Industrial action by banks in Lebanon began on Feb. 7 and the strike continues. Their work is currently limited to ensuring ATMs continue to operate.

The action was taken after Aoun issued summonses for bankers and ordered banks to lift the veil of secrecy surrounding some accounts. Industry figures argue that her actions are damaging the reputation of the Lebanese banking sector abroad for reasons related to internal political conflicts.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
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
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×