Lebanon’s Former Central Bank Chief to Stay in Detention Until Hearing Is Scheduled, Sources Report

BEIRUT (Reuters) – Riad Salameh, the former governor of the Lebanese central bank, was arrested on Tuesday on allegations of financial misconduct and will remain in custody until at least a hearing can be arranged, which is anticipated to take place next week, according to two judicial sources.

Following the hearing, the judge will determine whether to continue holding Salameh. As of now, no decision has been made on this matter, though one source indicated a hearing could likely be scheduled for the beginning of next week.

Attempts to contact Salameh’s lawyer were unsuccessful at the time of this report.

At 73 years old, Salameh had served as the bank governor for three decades. His tenure concluded amid the collapse of Lebanon’s financial system, accompanied by numerous allegations of financial improprieties, including illicit enrichment involving public funds, as reported by both local and international authorities.

The state-run National News Agency reported that prosecutor Ali Ibrahim, to whom the case was referred by public prosecutor Jamal al-Hajjar, formally charged Salameh with embezzlement, public fund theft, forgery, and illicit enrichment. The case has been handed over to investigating judge Bilal Halawi, who will determine the date for the hearing.

The specific charges against Salameh have not been made public. However, two judicial sources indicated that he is being held over accusations of amassing over $110 million in financial crimes related to Optimum Invest, a Lebanese firm involved in income brokerage services.

Optimum Invest released a statement asserting that it is fully cooperating with judicial authorities and has provided all necessary information and documentation. The firm emphasized that its transactions with the Lebanese central bank complied with all relevant laws and regulations.

Neither Salameh nor his legal counsel have commented on the charges. He has consistently denied all allegations of financial wrongdoing.

The current charges are distinct from earlier accusations concerning Forry Associates, a company owned by Salameh’s brother, Raja. Both brothers, who deny any wrongdoing, have been accused of misappropriating $330 million in public funds through improper commissions related to Forry.