Lebanese Justice Ministry accuses former central bank chief of financial crimes

BEIRUT (Reuters) – Lebanon's Justice Ministry formally charged former central bank governor Riad Salameh with financial crimes on Thursday, the state news agency and judicial sources said, repeating charges prosecutors made against him when he was arrested this week.

Salameh, 73, was arrested on Tuesday on alleged financial crimes, including illegal enrichment using public funds. Reuters has not been able to reach Salameh or his lawyer since his arrest, who has previously denied allegations of wrongdoing.

The Justice Department's move on Thursday was aimed at preserving the state's right to recover embezzled public funds, a justice source told Reuters.

Salameh's three decades at the helm of the central bank came to an end last year when he left office, his reputation tarnished by allegations of corruption at home and abroad and the catastrophic collapse of Lebanon's financial system in 2019.

On Thursday, protesters gathered outside the Justice Ministry to support Salameh's arrest, demanded that he remain behind bars and burned his picture. The protest was called by Depositors' Outcry, a group that campaigns for the rights of depositors of frozen savings in Lebanese banks.

Financial prosecutor Ali Ibrahim on Wednesday charged Salameh with embezzlement, theft of public funds, forgery and unlawful enrichment, the National News Agency and judicial sources reported.

The authorities have not made public the allegations against him.

Judicial sources say he is being held for allegedly amassing more than $110 million through financial crimes related to Optimum Invest, a Lebanese company that provides income brokerage services.

Optimum Invest said on Wednesday that it was “fully supporting the judicial authorities in their investigations and had provided them with all previously requested information and documents.”

The company stated that its transactions with the central bank were carried out “in full compliance with applicable laws and regulations”.

The charges filed against Salameh this week are unrelated to previous charges of financial crimes related to Forry Associates, a company controlled by his brother Raja. The brothers – who deny any wrongdoing – were accused of using Forry to embezzle $330 million in public funds via kickbacks.

Two judicial sources told Reuters on Wednesday that Salameh would remain in custody at least until the scheduled hearing, which is expected to take place next week.

(Reporting by Laila Bassam and Timour Azhari; Writing by Tala Ramadan and Tom Perry; Editing by Michael Georgy, Gareth Jones and Ros Russell)