Lebanon’s Former Central Bank Governor Detained in Corruption Case

Riad Salameh, Lebanon’s former central bank governor, is spending his third day in custody after being charged with corruption, a move that has stunned a nation grappling with its devastating economic collapse and accustomed to the impunity of high-ranking officials, Bloomberg reports.

Salameh, 74, was detained on Tuesday following a summons for questioning by the state prosecutor. He was subsequently charged with embezzling public funds, forgery, illicit enrichment, and money laundering by the financial prosecutor.

The charges stem from a multi-year investigation that accuses Salameh of embezzling $41 million from the central bank through a scheme involving fake companies that profited from buying and selling treasury bills.

Salameh, who served as governor for three decades before stepping down last year, has consistently denied the allegations, attributing his wealth to his previous career in finance. He has also been the subject of international investigations and sanctions by the US and UK, who accuse him of abusing his power for personal gain.

The detention marks the first time a former official of Salameh’s stature has been held in connection with Lebanon’s ongoing economic crisis. His lawyers have expressed surprise at the move, stating that they have not yet had the opportunity to review the details of the case.

Salameh, who played a key role in maintaining Lebanon’s currency peg for over two decades before its collapse in 2019, has largely evaded scrutiny since leaving office. He evaded previous requests for questioning and has maintained a low profile.

The charges against Salameh, who is also a suspect in a joint investigation by France, Germany, and Luxembourg into money laundering and embezzlement, could have significant implications for the country’s efforts to recover from its economic crisis.