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.



Spanish Foreign Minister to Asharq Al-Awsat: Syria Must End Violence Permanently

Attendees pose for the official group photo at the IX Conference on Syria, on the occasion of the Foreign Affairs Council of the European Union (EU) in Brussels, Belgium, 17 March 2025. (EPA)
Attendees pose for the official group photo at the IX Conference on Syria, on the occasion of the Foreign Affairs Council of the European Union (EU) in Brussels, Belgium, 17 March 2025. (EPA)
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Spanish Foreign Minister to Asharq Al-Awsat: Syria Must End Violence Permanently

Attendees pose for the official group photo at the IX Conference on Syria, on the occasion of the Foreign Affairs Council of the European Union (EU) in Brussels, Belgium, 17 March 2025. (EPA)
Attendees pose for the official group photo at the IX Conference on Syria, on the occasion of the Foreign Affairs Council of the European Union (EU) in Brussels, Belgium, 17 March 2025. (EPA)

Spain’s Foreign Minister José Manuel Albares told Asharq Al-Awsat ahead of a European Council meeting in Brussels that European foreign ministers assured their Syrian counterpart Asaad al-Shaibani that the EU is committed to supporting the interim government to ensure humanitarian aid reaches all Syrians in need.

He confirmed that the EU would announce additional aid amounting to 10 million euros to address the basic needs of Syrian citizens.

Albares emphasized that, in return, there must be a definitive end to violence, respect for the rights of all ethnic and religious minorities, and the protection of women's rights.

Donors at a European Union-led conference on Monday pledged 5.8 billion euros ($6.3 billion) to help Syria's new authorities as they struggle with humanitarian and security problems after the fall of Bashar al-Assad.

Moreover, Albares expressed satisfaction with the agreement reached between the transitional government and the Kurds, paving the way for their full integration into Syria’s peaceful future.

Contrary to expectations ahead of the Brussels donors’ conference, the European Union did not reduce its pledges to Syria but instead committed approximately 2.7 billion dollars (2.5 billion euros) for 2025 and 2026.

The majority of this funding will come in the form of direct aid through international agencies and humanitarian organizations, with no involvement from the transitional government.

The latter had insisted on sending a clear message, through Shaibani, rejecting any “foreign agendas” being imposed on Syria, according to sources at the conference.

Discussions at the conference focused on a “comprehensive peaceful transition” and reaching a political solution to ensure a stable future for Syria.

The challenges of poverty, hunger, lack of education, and the deterioration of critical infrastructure, especially in health, education, and banking sectors, were also addressed.

Sources revealed that the US withdrew from the donor group, despite the presence of American organizations and individuals at the conference.

The general atmosphere at the conference was described as positive and calm, with efforts focused on pushing the reconstruction process forward in Syria.

However, the aid provided remains minimal, covering less than 1% of Syria’s estimated $350-$400 billion reconstruction needs.