Riad Salameh, the head of the Lebanese central bank, has finally appeared before a European delegation investigating his personal wealth. The delegation is in Beirut as part of a wider probe into allegations of financial misconduct, including possible money laundering and embezzlement. Salameh had previously refused to attend the hearing, arguing that the presence of European investigators was in conflict with Lebanon’s national sovereignty. However, the judiciary rejected his claim and rescheduled the hearing for Thursday. Salameh is facing allegations of crimes including embezzlement in separate probes in Lebanon and abroad, with investigators examining the fortune he has amassed during his three decades on the job.
Salameh is part of the Lebanese political elite who have been widely blamed for a crushing economic crisis that began in late 2019 and that the World Bank has dubbed one of the worst in recent history. France, Germany and Luxembourg seized assets worth €120m ($127m) in March last year in a move linked to a French probe into Salameh’s personal wealth. The European investigation is looking into allegations of financial misconduct, including possible money laundering and embezzlement.
The delegation has submitted some 100 questions to Lebanese Judge Charbel Abu Samra, who will do the questioning in the presence of the European officials for procedural reasons. Salameh is appearing as a witness and will not be charged or arrested, but he could face several days of questioning. The chief of the central bank, called the Banque du Liban, has rarely appeared before investigating judges, despite numerous complaints and summonses.
In January, the European investigators interviewed banking officials in Beirut about the transfer of funds to countries where Salameh has significant assets. They also examined the central bank’s ties to Forry Associates Ltd, a British Virgin Islands-registered company that listed Salameh’s brother as its beneficiary. Forry is suspected of having brokered Lebanese treasury bonds and Eurobonds at a commission, which was then allegedly transferred to bank accounts abroad.
Last month, Lebanese authorities charged Salameh with embezzlement, money laundering and tax evasion as part of their own investigation. A fresh complaint was filed against him on Wednesday, including for bribery and illicit enrichment. Salameh has repeatedly denied any wrongdoing.
The economic crisis in Lebanon has been caused by a combination of factors, including political instability, corruption and mismanagement. The country is heavily indebted and has been struggling to pay its bills for years. The crisis has led to a shortage of basic goods, soaring inflation and widespread poverty. The government has been trying to negotiate a bailout package with the International Monetary Fund (IMF), but talks have stalled due to disagreements over reforms.
The crisis has also led to protests and unrest, with many Lebanese blaming their leaders for the dire situation. The country has been without a government since August last year, when Prime Minister Hassan Diab resigned following the devastating explosion at Beirut port that killed more than 200 people and destroyed large parts of the city. The political vacuum has made it even harder to tackle the crisis, with no one taking responsibility for the situation.
The investigation into Salameh’s personal wealth is just one part of a wider effort to hold Lebanese officials accountable for their actions. However, many Lebanese are sceptical that justice will be done, given the country’s long history of impunity for those in power. The crisis has exposed deep-seated problems in Lebanon’s political system, which is based on sectarianism and patronage. Many are calling for fundamental reforms to address these issues and create a more transparent and accountable government. However, such reforms are unlikely to happen anytime soon, given the entrenched interests of those in power.