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Lebanon Banking Chief Maintains Innocence in European Embezzlement Probe

Lebanese police stand outside the Justice Palace as Lebanon's central bank governor Riad Salameh attends a court hearing alongside European investigators, according to sources, in Beirut, Lebanon March 17, 2023. (Reuters)
Lebanese police stand outside the Justice Palace as Lebanon's central bank governor Riad Salameh attends a court hearing alongside European investigators, according to sources, in Beirut, Lebanon March 17, 2023. (Reuters)
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Lebanon Banking Chief Maintains Innocence in European Embezzlement Probe

Lebanese police stand outside the Justice Palace as Lebanon's central bank governor Riad Salameh attends a court hearing alongside European investigators, according to sources, in Beirut, Lebanon March 17, 2023. (Reuters)
Lebanese police stand outside the Justice Palace as Lebanon's central bank governor Riad Salameh attends a court hearing alongside European investigators, according to sources, in Beirut, Lebanon March 17, 2023. (Reuters)

Lebanese central bank governor Riad Salameh maintained his innocence Friday following a second and final day of questioning in Beirut before European investigators in a probe into his personal wealth.

Salameh, 72, is part of the Lebanese political class widely blamed for a crushing economic crisis that began in late 2019 and which the World Bank has dubbed one of the worst in recent history.

He faces allegations of crimes including embezzlement in separate probes in Lebanon and abroad, with investigators examining the fortune he has amassed during three decades in the job.

Following a three-hour session Friday, Salameh released a statement saying he appeared as a witness and "not as a suspect or facing charges".

"Funds from the Lebanese central bank were not transferred to my account," he said in a statement, adding: "The transfers I made abroad, whatever the amount, were from my personal account."

The European investigators, including representatives of authorities in France, Germany and Luxembourg, are looking into allegations of financial misconduct, including possible money laundering and embezzlement.

Salameh "answered all the questions" and "pledged to provide all the documents tracing the sources of his wealth" as well as the addresses of people mentioned in the questioning sessions, a judicial official told AFP.

Members of the European delegation plan to return to Beirut in April to question Salameh's brother Raja and former assistant Marianne Hoayek, the official said on condition of anonymity as he was not allowed to discuss matter with the press.

198 questions

Thursday's questioning session at Beirut's heavily guarded justice palace, which lasted more than five hours, was the first time Salameh had appeared as part of the European probe.

The hearing had been scheduled to begin on Wednesday but Salameh failed to show up, claiming it was in "conflict with national sovereignty", an argument the judiciary rejected.

For procedural reasons, the European investigators submitted their questions to a Lebanese judge, who was then responsible for putting them to Salameh in their presence, a judicial source previously told AFP.

Salameh had answered 198 questions during the two sessions, the first judicial official said, mostly about the central bank's ties to Forry Associates Ltd, a British Virgin Islands-registered company that listed Salameh's brother as its beneficiary.

Forry is suspected of having brokered Lebanese treasury bonds and Eurobonds at a commission, which was then allegedly transferred to bank accounts abroad.

Salameh denied that any central bank funds had gone to the company.

He decried "ill intentions" against him and blamed an "ongoing media campaign" for his legal woes.

In January, the European investigators interviewed banking officials in Beirut about the transfer of funds to countries where Salameh has significant assets.

During this week's sessions, Salameh was also questioned about "the huge funds and real estate he owns in Lebanon and abroad," the official said.

France, Germany and Luxembourg seized assets worth 120 million euros ($130 million) in March 2022 in a move linked to a French probe into Salameh's personal wealth.

The three-decade bank governor has repeatedly denied any wrongdoing and has rarely appeared before investigating judges, despite numerous complaints and summonses.

Last month, Lebanese authorities charged Salameh with embezzlement, money laundering and tax evasion as part of their own investigation.

The domestic probe was opened following a request for assistance from Switzerland's public prosecutor looking into more than $300 million in fund movements by the Salameh brothers.

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Syria Joins a Donor Conference for the First Time in a Crucial Phase for Its New Leaders

EU High Representative and Vice-President for Foreign Affairs and Security Policy Kaja Kallas (C), Syria's interim Foreign Minister Asaad al-Shaibani (C-R), Jordan's Foreign Minister Ayman Safadi (C-L) and representatives pose for a family picture on the sidelines of the Brussels IX Conference “Standing with Syria: meeting the needs for a successful transition”, at the Europa Building in Brussels on March 17, 2025. (AFP)
EU High Representative and Vice-President for Foreign Affairs and Security Policy Kaja Kallas (C), Syria's interim Foreign Minister Asaad al-Shaibani (C-R), Jordan's Foreign Minister Ayman Safadi (C-L) and representatives pose for a family picture on the sidelines of the Brussels IX Conference “Standing with Syria: meeting the needs for a successful transition”, at the Europa Building in Brussels on March 17, 2025. (AFP)
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Syria Joins a Donor Conference for the First Time in a Crucial Phase for Its New Leaders

EU High Representative and Vice-President for Foreign Affairs and Security Policy Kaja Kallas (C), Syria's interim Foreign Minister Asaad al-Shaibani (C-R), Jordan's Foreign Minister Ayman Safadi (C-L) and representatives pose for a family picture on the sidelines of the Brussels IX Conference “Standing with Syria: meeting the needs for a successful transition”, at the Europa Building in Brussels on March 17, 2025. (AFP)
EU High Representative and Vice-President for Foreign Affairs and Security Policy Kaja Kallas (C), Syria's interim Foreign Minister Asaad al-Shaibani (C-R), Jordan's Foreign Minister Ayman Safadi (C-L) and representatives pose for a family picture on the sidelines of the Brussels IX Conference “Standing with Syria: meeting the needs for a successful transition”, at the Europa Building in Brussels on March 17, 2025. (AFP)

International donors gathered on Monday in a show of support for Syria, hoping to encourage the new leaders of the conflict-ravaged country toward a peaceful political transition following the ouster of President Bashar al-Assad in December.

Syrian Foreign Minister Asaad al-Shaibani attended the conference — the ninth of its kind — in a first for a top official from Damascus.

But the United States, one of Syria’s top donors, wasn’t expected to offer assistance as the Trump administration is reviewing all foreign aid. It contributed almost $1.2 billion to Syria and the region last year.

Ministers and representatives from Western partners, Syria’s regional neighbors, other Arab countries and UN agencies also attended the one-day meeting in Brussels, organized in haste by the European Union amid change sweeping the country.

Opening the meeting, European Commission President Ursula von der Leyen said that the EU was increasing its pledge to Syrians in the country and the region to almost 2.5 billion euros ($2.7 billion) for 2025 and 2026.

“We call on all of you who are here today to do the same, if possible, because at this critical time, the people of Syria need us more than ever,” von der Leyen said.

Syria's new leaders are trying to consolidate control over territory that was divided into de facto mini-states during nearly 14 years of civil war, and to rebuild the economy and infrastructure. The United Nations has estimated that it would cost at least $250 billion to rebuild Syria, while experts say that could reach at least $400 billion.

At the same time, Western governments are cutting back on aid spending, in part to use in defense budgets.

“We will give more, but we cannot fill the gap left by the US,” EU Crisis Management Commissioner Hadja Lahbib told reporters. "We will need to share the burden.”

Security concerns are also making donors hesitate. Earlier this month, an ambush on a Syrian security patrol by gunmen loyal to Assad triggered clashes. Some factions allied with the new government launched sectarian revenge attacks — primarily targeting Assad’s Alawite minority sect — that monitoring groups say killed hundreds of civilians over several days.

The EU said that it will only support “a peaceful and inclusive transition, away from malign foreign interference, which guarantees the rights of all Syrians without distinction of any kind.”

The 27-nation bloc has begun to ease energy, transport and financial sector sanctions to encourage the new authorities, but many other Western sanctions remain in place. The EU can reintroduce sanctions if things don’t go to the liking of Western backers.

Syria's foreign minister said that lifting the measures is no longer just a government demand but "a humanitarian and moral necessity.”

"We cannot talk about economic recovery and humanitarian development in Syria while restrictions continue to prevent even the arrival of medical equipment and spare parts to repair damaged hospitals and essential service facilities,” he said.

Syria's economy, infrastructure and institutions are in tatters. As a failed state, it could become another haven for extremists.

Amy Pope, director-general of the International Organization for Migration, urged donors to seize this opportunity to encourage the interim government to move in the right direction.

“It’s critical that countries take advantage of the moment we’re in,” Pope told The Associated Press.

“Of course, we all want to see an inclusive Syria,” she said. “We want to make sure there’s accountability for human rights violations. But the answer is to engage more, not to engage less.”

Syrians have only a few hours of electricity each day. Water supplies are unreliable and often unsafe. Unemployment runs to 80% or 90%. Destruction is widespread.

Many government employees and experts needed to rebuild fled after the 2011 peaceful anti-regime protests were violently quelled by Assad, leading to the conflict.

The UN refugee agency said that last year around 7 million people were displaced in Syria. More than 4.7 million refugees are registered in neighboring countries, most in Türkiye, Lebanon and Jordan.

The German government said that it would pledge around 300 million euros ($326 million) to help deal with the fallout from Syria’s civil war. More than half will be used to help people in Syria, with other funding supporting Syrians and communities elsewhere.

Monday's conference was also focused on meeting Syria’s economic needs. Infrastructure, health and education must be scaled up. Jobs and cash for work programs are needed so that Syrians can start to make a living.