French magistrates will charge Lebanese governor, report says

A French magistrate plan to formally charge Lebanon’s central bank governor with financial crimes, Reuters reports.

Aude Buresi plans to formally place criminal charges against Riad Salameh at a hearing in Paris on May 16, Reuters reported on April 21. 

A separate report on May 5 by newspaper Al-Akhbar said the Paris hearing had been postponed until May 23. Al-Akhbar said the hearing’s date was changed after Lebanese authorities entered into the case and requested copies of the files. The newspaper reported sources close to Salameh said he would not attend the Paris hearing.

In a separate development, a Lebanese judge who was also investigating Salameh has been dismissed from her role.

Investigating magistrates from European countries interviewed senior officials in Lebanon last week over alleged corruption by Salameh. The team, led by Buresi, questioned Salameh’s brother over millions of dollars handled by Swiss firm Forry, Reuters said.

News reports quoting sources close to French and Swiss investigations have claimed the governor used Forry to carry out financial crimes. The reports have said Salameh used Forry to embezzle and launder up to $300 million in central bank regulatory fees.

Salameh has denied all wrongdoing and any links to Forry, calling the allegations a politically motivated smear campaign against him. His brother has also said the governor is not linked to Forry.

Reuters said it has seen French documents alleging Salameh used banking documents made out in his brother’s name to cover up illicit transactions. Five European countries have frozen property and other assets belonging to Salameh, which he says he legitimately acquired using earnings from his pre-central bank career.

The European team also interviewed Marianne Howayek, head of Salameh’s office at the central bank, and several other figures from the financial sector. They left Lebanon on May 5, having interviewed Salameh on an earlier visit.

Finance minister questioned

The European investigators also interviewed Lebanon’s acting finance minister Youssef el-Khalil, over alleged links with Forry when he was a central bank official, Reuters said. Youssef said he had not been aware of the firm when he was head of the central bank’s financial operations department.

He became acting finance minister in September 2021, as part of the government of prime minister Najib Mikati. Since June 2022, Lebanon’s parliament has been unable to agree on a power-sharing coalition, and Mikati and Youssef have stayed on in an acting capacity.

Judge dismissed

A Lebanese magistrate who has also investigated Salameh was dismissed by the judiciary’s disciplinary council on May 4. Ghada Aoun attempted several times to interview the governor over alleged financial crimes but he refused to meet her.

As well as investigating Salameh, Aoun launched an investigation into alleged financial wrongdoing by Mikati, who subsequently became prime minister. Mikati criticised her behaviour, saying in 2022 that her “populist” decisions were “causing tension in the country”.

Aoun is a supporter of the country’s former president, who also accused Salameh before he stepped down. Another investigation into Salameh was effectively stopped when a series of judges refused to rule on whether it should continue.