Lebanese Justice Ministry Charges Former Central Bank Director with 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 reported, echoing charges brought against him by prosecutors when he was arrested this week.

Salameh, 73, was arrested on Tuesday on suspicion of financial crimes, including illicit enrichment through public funds. Reuters has not been able to reach Salameh or his lawyer since his arrest. He has previously denied accusations of wrongdoing.

The decision by the Justice Ministry on Thursday is aimed at preserving the state's right to recover embezzled public funds, a judicial source told Reuters.

Salameh's three decades at the helm of the central bank ended last year when he left office with his legacy tarnished by corruption accusations at home and abroad and the catastrophic collapse of Lebanon's financial system in 2019.

Protesters gathered outside the Justice Ministry on Thursday to protest Salameh's arrest, demanding that he remain behind bars and burning his portrait. The demonstration was organized by Depositors' Outcry, a group that campaigns for the rights of depositors whose savings are blocked in Lebanese banks.

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

Authorities have not released the charges against him.

Judicial sources said he was detained and accused of accumulating more than $110 million through financial crimes involving Optimum Invest, a Lebanese company that offers income brokerage services.

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

It said its transactions with the central bank “were conducted in full compliance with applicable laws and regulations.”

The charges brought against Salameh this week are separate from previous financial crimes charges 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 through kickbacks.

Two judicial sources told Reuters on Wednesday that Salameh would remain in custody at least until a hearing is scheduled, likely 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)