Former Lebanese central bank governor charged with misappropriating $42 million in ongoing corruption investigation

BEIRUT (AP) — Lebanon indicted a former central bank governor on Wednesday for misappropriating $42 million, three court officials told The Associated Press.

Riad Salameh, 73, was charged by the Financial Prosecutor’s Office a day after he was detained following questioning by Lebanon’s chief prosecutor in connection with several alleged financial crimes.

His case has been referred to an investigating judge, added the officials, who asked to remain anonymous in line with regulations.

Salameh ended his 30-year term as central bank governor a year ago in shadow as several European countries investigated allegations of financial crimes. Many in Lebanon blame him for the crippling financial crisis that has gripped the country since late 2019.

He was appointed in 1993 and was initially praised for his role in leading Lebanon’s economic recovery after a 15-year civil war, as well as for maintaining economic stability during long periods of political stalemate and unrest.

Salameh has for years denied allegations of corruption, embezzlement and illicit enrichment, saying his wealth comes from inherited properties, investments and a previous job as an investment banker at Merrill Lynch.

During hours of questioning on Monday, Salameh was asked about a key case in which the company was allegedly hired to manipulate statements and conceal Lebanon’s dwindling finances.

According to two other court officials, Salameh likely hired a company called Optimum to facilitate the embezzlement of money from the central bank through other accounts, ultimately ending up in his own.

The central bank’s financial intelligence unit has provided prosecutors with bank statements and financial documents, said the two officials, who asked to remain anonymous in line with regulations.

The central bank told the AP it had no comment.

There are also other ongoing proceedings against Salameh, both domestic and international.

France, Germany and Luxembourg are also investigating Salameh and his close associates, suspecting them of illicit enrichment and money laundering worth $330 million.

Salameh has criticised the European investigation and said it is part of a media and political campaign to make him a scapegoat.

Meanwhile, the United States, Britain and Canada have imposed sanctions on Salameh and his close associates, and France has issued an international arrest warrant for him, although Lebanon does not extradite its citizens.

Lebanon has not named a new central bank governor, but deputy governor Wassim Mansouri has been named acting governor. The crisis-hit country has been without a president for almost two years and is run by a caretaker cabinet with limited functions.