Lebanon Cenbank Governor, Brother Sue State over ‘Mistakes’ in Embezzlement Probe

Lebanon's Central Bank Governor Riad Salameh speaks during an interview for Reuters Next conference, in Beirut, Lebanon November 23, 2021. (Reuters)
Lebanon's Central Bank Governor Riad Salameh speaks during an interview for Reuters Next conference, in Beirut, Lebanon November 23, 2021. (Reuters)
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Lebanon Cenbank Governor, Brother Sue State over ‘Mistakes’ in Embezzlement Probe

Lebanon's Central Bank Governor Riad Salameh speaks during an interview for Reuters Next conference, in Beirut, Lebanon November 23, 2021. (Reuters)
Lebanon's Central Bank Governor Riad Salameh speaks during an interview for Reuters Next conference, in Beirut, Lebanon November 23, 2021. (Reuters)

Lebanon's central bank governor and his brother are suing the state over what they say were "grave mistakes" made by a public prosecutor in his investigation of whether they had embezzled public funds, according to a copy of the lawsuit.

Their claim has led to concerns that the public probe into the two brothers could stall, after similar lawsuits paralyzed an investigation into the devastating 2020 explosion at Beirut's port.

Public prosecutor Jean Tannous has been investigating allegations of embezzlement and other misconduct at the central bank involving $300 million in gains made by a company owned by Raja Salameh, brother of Lebanese Central Bank Governor Riad Salameh.

The brothers have denied the accusations.

This week, they filed a suit against the Lebanese state accusing Tannous of committing "grave mistakes" through the course of his probe, according to a copy of the lawsuit seen by Reuters on Friday.

Tannous declined a Reuters request for comment while Riad Salameh did not immediately respond to a similar request.

The document alleges that Tannous is biased and lacks the legal authority to access bank information, arguing that only the central bank's special investigation commission has that prerogative.

The commission is typically headed by the central bank governor. Salameh told Reuters earlier this year he stepped back from presiding over it as far as it pertains to his case, "so there is no conflict of interest".

The lawsuit also claims that Tannous's attempt to obtain account information from commercial banks in January as part of the probe violated banking secrecy laws. It also accuses Tannous of circumventing official channels to coordinate directly with judiciaries abroad on the probe.

Riad Salameh is facing judicial probes in at least five European nations over the same accusations of embezzlement and money-laundering.

In May, French investigative judge Aude Buresi traveled to Beirut and met with Tannous, Lebanon's top prosecutor Ghassan Oueidat, and other judges.

During her visit, the central bank's special investigation commission handed over account information on Raja Salameh from nine Lebanese banks to Oueidat, in the first known case of such information-sharing.

Nizar Saghieh, the head of rights watchdog Legal Agenda, said the lawsuit could "freeze the case indefinitely" as it was filed to a public court whose members have yet to be named.

Similar lawsuits filed to this body have managed to stall another state investigation into the causes behind the Beirut port blast, which killed more than 215 people.



Israeli Defense Minister Orders Army Plan for ‘Complete Defeat of Hamas’

Israeli soldiers are seen in a tunnel that the military says was used by Hamas to attack the Erez crossing in the northern Gaza Strip, December 15, 2023. (AP)
Israeli soldiers are seen in a tunnel that the military says was used by Hamas to attack the Erez crossing in the northern Gaza Strip, December 15, 2023. (AP)
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Israeli Defense Minister Orders Army Plan for ‘Complete Defeat of Hamas’

Israeli soldiers are seen in a tunnel that the military says was used by Hamas to attack the Erez crossing in the northern Gaza Strip, December 15, 2023. (AP)
Israeli soldiers are seen in a tunnel that the military says was used by Hamas to attack the Erez crossing in the northern Gaza Strip, December 15, 2023. (AP)

Israeli Defense Minister Israel Katz on Friday directed the military to quickly prepare a comprehensive plan for the total defeat of Hamas in Gaza if ongoing ceasefire talks fail to secure the release of hostages by the time incoming US president Donald Trump enters the White House on January 20.

Katz said his instruction to present the plans came Thursday during a night assessment with Army Chief of Staff Lt. Gen. Herzi Halevi and other top officers.

“We must not be drawn into a war of attrition that will cost us heavily and not lead to victory and the complete strategic defeat of Hamas and the end of the war in Gaza, while the hostages remain in the tunnels with their lives in danger and while they suffer severely,” Katz said.

The Israeli minister then asked the Army to “specify the issues that might make it difficult to carry out the plan, including the humanitarian issue and other issues, and leave it to the political echelon to make the necessary decisions,” according to a statement by his office.

He also “emphasized that the matter of the political solution to Gaza is not relevant to the issue of the plan and the activity required now, because no Arab or other party will take responsibility for managing civilian life in Gaza as long as Hamas is not completely crushed.”

It remains unclear what Israel means by “complete defeat.” Israel had set two main goals through its war on Hamas in the Gaza Strip: The elimination of Hamas's military infrastructure and the end of the group’s rule in the Strip.

Israeli military correspondent for the Israeli Army Radio Doron Kadosh said Katz believes the army has not yet acted properly to defeat Hamas, and has been dragged into a war of attrition.

“It remains unclear what plan the Army will present to Katz with the aim of completely defeating Hamas. But in closed discussions, the Army clearly states that in the absence of an alternative to Hamas’ rule, it would be impossible to overthrow the Movement.”

According to Kadosh, the Army could possibly deploy three more military units in the Gaza Strip, with a mission to carry out a ground maneuver simultaneously in several areas.

Similar to Prime Minister Benjamin Netanyahu, Katz believes there is currently no room for Israel to present an alternative to Hamas rule in Gaza.

The Israeli army fears that a plan to defeat Hamas based on deepening its ground maneuvers in areas in the middle of the Strip could lead to the deaths of hostages. Therefore, the army most likely would focus on changing its aid policy in the Strip.

Israel is considering limiting humanitarian aid to Gaza after Donald Trump comes into office later this month in a bid to deprive Hamas of resources, according to an Israeli official familiar with the matter.

Doha talks

Meanwhile in the Qatari capital, Doha, meditators are trying to push for a deal before the arrival of Trump, who warned that “all hell will break out in the Middle East” if Hamas does not release the hostages by the time he is inaugurated.

Sources say mediators are making real progress in reaching a deal, but some issues still need to be resolved.

The Israeli government's hostage and missing persons coordinator, Brig. Gen. Gal Hirsch said on Thursday that the deal being discussed would include the return of all the hostages. However, he noted that it would be implemented in stages.

The official explained that the discussions that are currently being conducted pertain only to the first stage of the deal.

Sources familiar with the details of the deal told Yedioth Ahronoth the negotiations are not at an impasse despite the challenges.

They noted that talks are progressing, but every resolved issue leads Hamas to reopen previously agreed matters.

Additionally, communication difficulties between Hamas’ external leadership and its de facto leader in Gaza Mohammed Sinwar are reportedly complicating the process.

The newspaper said Hamas has so far refused to provide a list of live hostages and mediators are working to bridge this gap.

Israel continues to insist that no progress can be made without such a list.

Moreover, the newspaper wrote, Hamas' refusal to disclose in advance who among the hostages on the list provided by Israel to mediators in July is alive or dead is seen by officials as a tactic to maximize Palestinian prisoner releases in exchange for as few live hostages as possible.

Conversely, a senior Palestinian official told Reuters that Israel has introduced a new condition, insisting on maintaining a one-kilometer-wide military presence in the eastern and southern parts of Gaza, along the Philadelphi Corridor.

“This will hinder residents from returning to their homes and constitutes a backtrack on previously agreed terms,” the official claimed.

Yedioth Ahronoth said mediators and Israel now hope the presence of Trump’s envoy Steve Witkoff in Qatar might inject fresh momentum, pressuring Hamas to realize that Trump is serious about his threats against them if the hostages aren’t released.