Lebanon's Ex-Central Bank Governor Accused of Financial Crimes

Former central bank governor of Lebanon, Riad Salameh, has been formally accused of financial crimes by the justice ministry. Salameh, arrested earlier this week, faces charges including embezzlement and illicit enrichment with public funds. Protesters supporting his detention rallied in front of the justice ministry.

Lebanon's Justice Ministry has formally accused former central bank governor Riad Salameh of financial crimes, reflecting charges brought earlier by state prosecutors upon his recent arrest, reported the state news agency and judicial sources on Thursday.

Salameh, 73, was detained on Tuesday over alleged financial misconduct, including illicit enrichment via public funds. Efforts by Reuters to reach Salameh or his lawyer have been unsuccessful since his arrest. Salameh has previously denied any wrongdoing. The Justice Ministry's move seeks to ensure the state's right to reclaim any misappropriated public funds, a judicial source informed Reuters.

Salameh's three-decade tenure at the central bank ended last year under a cloud of corruption allegations and the 2019 collapse of Lebanon's financial system. Protesters gathered at the Justice Ministry on Thursday, supporting Salameh's detention, calling for him to remain imprisoned and burning his picture. The protest was organized by Depositors' Outcry, a group advocating for depositors with frozen savings in Lebanese banks.

On Wednesday, Financial Prosecutor Ali Ibrahim charged Salameh with various financial crimes, including embezzlement and forgery, as per the National News Agency and judicial sources. Authorities have yet to publicly disclose the charges.

Judicial sources indicated Salameh allegedly amassed over $110 million through financial crimes linked to Optimum Invest, a Lebanese brokerage firm. Optimum Invest stated its full cooperation with the judicial authorities, providing all requested information. The firm asserted that its central bank dealings were legally compliant.

The charges against Salameh this week are distinct from previous accusations involving Forry Associates, a company his brother Raja controlled. The brothers, denying any wrongdoing, face allegations of diverting $330 million in public funds through commissions.

Judicial sources informed Reuters that Salameh would remain in detention until at least a scheduled hearing next week.

(With inputs from agencies.)