Lebanon's Central Bank Governor Charged with Corruption in Final Months of Term

Lebanon's Central Bank Governor Riad Salameh. Reuters
Lebanon's Central Bank Governor Riad Salameh. Reuters
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Lebanon's Central Bank Governor Charged with Corruption in Final Months of Term

Lebanon's Central Bank Governor Riad Salameh. Reuters
Lebanon's Central Bank Governor Riad Salameh. Reuters

Beirut’s public prosecutor on Thursday charged the governor of Lebanon's Central Bank, Riad Salameh, his brother and an associate with corruption, Lebanese officials said.

According to two judicial officials, Beirut's Attorney General Raja Hamoush charged Salameh, his assistant Marianne Howaiyak, and his brother Raja Salameh with embezzling public funds, forgery, illicit enrichment, money-laundering, and violation of tax laws. The two officials spoke on condition of anonymity because they were not authorized to talk to the media.

One of the officials told The Associated Press the charges raised Thursday may delay an anticipated, follow-up visit by a European judicial delegation.

The delegation from France, Germany, and Luxembourg visited Lebanon to question Salameh and dozens of other individuals over suspected corruption after five European state opened cases against him.

Since 2019, Lebanon has been in the throes of the worst economic and financial crisis in its modern history, rooted in decades of corruption and mismanagement. Three quarters of the country’s population of 6 million now lives in poverty.

The governor, who has held the post since April 1993, still enjoys the backing of top politicians.

Just before the announcement Thursday, a German Embassy delegation showed up at the Justice Palace in Beirut to meet with Lebanon's chief prosecutor, Ghassan Oweidat. But Oweidat refused to meet with them, citing his work schedule, the official said.

No further details were provided and it wasn't immediately clear if Oweidat's action was connected to Hamoush's charges against Salameh, which were announced shortly after.

Activists, lawyers, and critics of Salameh have questioned the personal wealth the governor has amassed over the years, but he has repeatedly insisted he had earned it prior to his appointment as governor, while working as an investment banker for Merril Lynch for nearly two decades.

Salameh said his last salary as a banker was $2 million a year, and that he had a fortune worth $23 million, plus property he had acquired and “wisely invested” in to grow his wealth, before he became governor.

In comments to Reuters on Thursday, Salameh said the charges were "not an indictment" and pledged to abide by the judicial procedures.

"And as you know one is innocent till proven guilty by a court of law," he said in a written response to questions.

Salameh's current term is set to end in July. He said he will not seek to stay on but Lebanon's finance minister told Reuters that he would be difficult to replace.



Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.