Lebanon’s central financial institution governor has appeared in entrance of a delegation of European investigators in a Beirut courtroom, the place for the primary time he confronted questions associated to allegations of money-laundering and embezzlement of public funds.
Not less than 5 European nations are investigating accusations that Riad Salameh and his brother Raja Salameh misappropriated a whole bunch of thousands and thousands of {dollars} and laundered a number of the proceeds overseas. The groups from Europe additionally visited Beirut in January to query central financial institution officers and the heads of a number of the nation’s business banks.
Riad and Raja Salameh are additionally being investigated on corruption-related allegations in Lebanon. Each males and their affiliate Marianne Hoayek confronted new corruption allegations this week by Choose Helena Iskandar, who’s representing the state and overseeing the European delegation’s probe. As a part of the brand new accusations the state moved to freeze their property.
All three strenuously deny all of the allegations of wrongdoing. Riad Salameh claims the worldwide probes are a part of a smear marketing campaign designed to scapegoat him for Lebanon’s monetary implosion.
The Banque du Liban’s Salameh, as soon as celebrated for conserving Lebanon afloat throughout years of instability, has been the topic of intense scrutiny because the nation’s financial system imploded in 2019.
That is the primary time he has appeared in courtroom since separate allegations had been levelled in opposition to him in Lebanon final 12 months over illicit enrichment and cash laundering.
Lebanese military troopers and cops on Thursday stood cautious watch outdoors the Palace of Justice in Beirut whereas Salameh was questioned for greater than 5 hours.
Below Lebanese regulation, the Europeans can’t immediately query Salameh however should as an alternative accomplish that by a Lebanese choose, who acts as middleman within the investigation.
Authorized specialists hailed the questioning as a breakthrough within the arduous quest for accountability for Lebanon’s financial meltdown. Many Lebanese, together with activists and opposition lawmakers, accuse Salameh of mismanaging the nation’s funds in his three a long time as central financial institution chief. They’ve additionally questioned how he amassed his huge private wealth.
The case opened this week is separate to different authorized proceedings in opposition to Salameh in Lebanon. Beirut’s public prosecutor final month started investigating Riad and Raja Salameh and Hoayek for corruption, together with embezzling public funds, forgery, illicit enrichment, cash laundering and violation of tax legal guidelines.
Salameh’s sixth time period as financial institution governor is up in July and he not too long ago mentioned he wouldn’t search one other time period. There are additionally indicators that his political assist is waning. Caretaker prime minister Najib Mikati, beforehand a powerful supporter of Salameh, mentioned in a current tv interview that he was not in favour of extending the central financial institution chief’s time period.
