Lebanon’s Central Bank Governor Riad Salameh Wanted on French and German Arrest Warrants for Corruption Investigation

BEIRUT (Reuters) – Lebanon’s central bank governor Riad Salameh, once hailed as a financier of special abilities, is spending his final weeks in office wanted on French and German arrest warrants in a long-running corruption investigation.

The two arrest warrants represent the latest development in cross-border investigations into whether Salameh had abused his position to embezzle wealth from Lebanese public funds. Salama has held the position of governor of the bank for three decades, and his current term ends in July, and he denies any wrongdoing.

Those issues affected a legacy already fractured since the collapse of Lebanon’s financial system in 2019, a disaster many blame for Salameh and the country’s ruling elite.

The collapse shed light on the 72-year-old Salama’s relations with ruling politicians, whose support for him began to wane in the past months as European investigations moved forward.

The International Police (Interpol) issued a red notice against Salameh, along with his picture, on its website. France declared him wanted.

Some Lebanese ministers and politicians are now saying he should resign, though others have remained silent, including Prime Minister Najib Mikati and Parliament Speaker Nabih Berri.

Salameh has shown no sign of intending to leave office early, and has long described the accusations as an attempt to make him a scapegoat after Lebanon’s financial collapse.

“My conscience is clear and I know that these charges are not true,” he told Al-Hadath TV last week, adding that he would leave his post if a court issued a ruling against him.

For many years, many Lebanese considered the safety of the backbone of the financial system, which provided them with a standard of living that was not in line with the country’s weak economy. Salameh assumed his position in 1993 after working for Merrill Lynch Bank.

However, the Lebanese economic system collapsed in 2019 under the weight of rampant corruption in the state and indulgence in waste on the part of the ruling elites, and many Lebanese held Salameh responsible for the collapse of the currency in the country and the paralysis of the banking system.

Declining fortunes

It marks a sharp downturn for the fortunes of a man once celebrated for successfully leading Lebanon through the global financial crisis and as a distinguished speaker at international banking conferences.

He rarely appears now in public. A source close to him said that he spends most of his time inside the Central Bank, receives a small number of guests, and does not leave the headquarters except when necessary.

“He cannot appear in public, make private visits, attend conferences or (reside in any of his) many homes,” the source said.

Salama did not respond to questions on this matter.

The investigations focus on commissions imposed by the Central Bank on banks in exchange for buying government bonds, and the proceeds of them went to Fawry Associates, which is controlled by his brother, Raja Salameh.

The two brothers deny transferring or laundering any public funds, and they deny any wrongdoing.

The investigations provided a glimpse into Salama’s life, including his relationship with Ukrainian Anna Kosakova, from whom he had a daughter. French prosecutors said in December that they had placed Kosakova under investigation on suspicion of money laundering in connection with the case.

Kosakova and her lawyer in France did not respond to Reuters requests for comment on this investigative report or on previous requests.

During the investigation, the French judicial authority summoned his brother, Raja Salameh, and Marianne Howeik, who is one of the assistants to the Governor of the Central Bank of Lebanon. In another investigation, a Lebanese judge questioned the Lebanese actress, Stephanie Saliba, in December, on suspicion of buying Salama a luxury property for her with illegal gains, as part of a list of accusations against Salama, which he denies.

Hoayek’s lawyer did not respond to a Reuters request for comment. Saliba, who also did not respond, said in a video clip she posted on social media after her interrogation that she had been subjected to injustice, without mentioning any charges against her.

The Interpol Red Notice regarding Salameh cited charges of money laundering, fraud and “setting up a gang of bad guys” with the aim of committing crimes punishable by 10 years in prison.

* Appeal against the arrest warrant

Salameh vowed to challenge the French arrest warrant, which was issued after he failed to appear at a court hearing in Paris at which prosecutors were expected to bring preliminary charges of fraud and money laundering. Salameh said the memo violated the law.

A Lebanese judge said Germany had also issued an arrest warrant for Salameh on charges including forgery, money laundering and embezzlement.

The Munich Public Prosecutor’s Office said it was investigating the case but added that it did not comment in principle on arrest warrants, either those being applied for or already issued.

Salameh told Reuters he had not received any notification from Germany.

Salameh, his brother Raja and his assistant Howayek were charged in Lebanon with money laundering, embezzlement and illicit enrichment in February.

But critics have long questioned how seriously the case should be pursued in Lebanon, where politicians can influence the judiciary. Although the independence of the judiciary is stipulated in the constitution, Lebanon’s chief judge complained last year of interference with it.

Lebanon’s justice minister and deputy prime minister said Salame should now resign, but Environment Minister Nasser Yassin told Reuters that opinions in the cabinet were divided at Monday’s meeting.

“What’s surreal is that despite everything, he’s still not ready to step down,” Yassin said.