Logo-English_diff-transpLogo-English_diff-transpLogo-English_diff-transpLogo-English_diff-transp
  • Home
  • About Us
  • The Basics
  • Cases
  • Blog
  • Photos
  • Contact
✕
Riad Salame corruption
Luxembourg agents start corruption probe in Beirut
1 March 2023
Riad Salame Corruption

Riad Salame

Nada Maucourant Atallah - The National News

Lebanese judge Raja Hamoush charged Central Bank Governor Riad Salameh, his brother Raja, and his assistant Marianne Howayek with embezzlement, forgery, illicit enrichment, money laundering, and violation of tax law on Thursday. The move is based on an 18-month investigation led by Judge Jean Tannous into alleged embezzlement at the Banque du Liban (BDL) of more than $330 million through a contract awarded to his brother, Raja Salameh.

Riad Salameh was once lauded as the guardian of the financial sector — which has now completely collapsed amid an unprecedented financial crisis.
He has been the target of investigations since 2020 in at least six European countries over alleged financial wrongdoing and corruption. Both brothers have denied all accusations against them.
“As I declared previously, I am innocent of these charges,” Riad Salameh told Reuters on Thursday. He said the latest development was “not an indictment”.
A spokesperson for BDL did not respond to a request for comment.
Riad Salameh is being investigated by so many parties now, it can seem hard to keep up. Here's what you need to know.

Why is Riad Salameh being investigated?

The Lebanese and foreign investigations are looking into Forry, the company run by Riad's brother. It was supposed to act as an intermediary between the BDL and commercial banks in purchasing and selling financial instruments.

Under the contract terms signed in 2002, Forry would earn a broker’s fee of up to 0.38 per cent of the value of transactions between BDL and the lenders.

But investigators allege that Forry was a vehicle designed to siphon millions from the Central Bank by collecting commissions without providing any actual services in exchange.

Judicial documents reveal how the money was then transferred from an account at BDL through layering operations involving various countries and people, including his assistant and former romantic partner, Marianne Howayek, whose company allegedly received 1 million Swiss francs.

Stakes are high as EU investigators plan Beirut trip over Salameh case Thursday's charges are not the first laid against the Governor, who remains in post despite the scandal beginning to engulf him.

Last March, Judge Ghada Aoun charged Riad and Raja Salameh with illicit enrichment in another case related to the purchase and rental of apartments in Paris.

Raja Salameh was detained for nearly two months before he was released on bail of about 100 billion Lebanese pounds ($3.7 million).

The case remains at the indictment division of the court of appeal after the defence appealed the decision.

European investigations have yet to bring charges against Mr Salameh.

Do the new charges present a risk to the European investigations?

Some lawyers warned that the current prosecution effort in Lebanon could jeopardise those under way in Europe, hinting at an attempt to sabotage the case.

This is based on the legal basis that someone cannot be prosecuted twice for the same crime.

“There is a risk: Lebanon's judiciary could ask the foreign investigations to stop, based on the Civil Procedure Code and the United Nations Convention against Corruption on the ground that Lebanon launched the prosecution before the other European jurisdictions,” said a lawyer who preferred to remain anonymous.

“We need more information on the charges and facts brought up in the case by the Lebanese judge, there might not necessarily be an overlap,” he said.

This would not be the first time a country has used a similar strategy in a bid to jeopardise a foreign investigation into an individual's assets.

“But if the domestic proceedings appear to be inspired solely by the need to ensure the impunity of the suspect, the foreign judge can decide that the decision does not apply to his case,” the lawyer added.

In the Teodorin Obiang case, for instance, the son of Equatorial Guinea's president was found guilty of embezzlement in France despite his acquittal in Equatorial Guinea for the same charges.

What are the next steps?

Judge Hamoush referred the file to the Beirut First Investigative Judge Charbel Bou Samra, according to Lebanon's National News agency, demanding the “interrogation of the defendants,” and “the issuance of the necessary judicial warrants”.

But some fear the case might be stuck there for a while.

“It has happened before with high-profile cases which end up in the hands of Judge Bou Samra,” said lawyer Wadih Akl, a member of the political bureau of the Free Patriotic Movement political party.

In 2020, a high-profile corruption case involving eight high-ranking security officers, including Lebanon's ex-army chief, was referred to the judge.

“Three years after, there is still no development in sight,” said the lawyer, who is among those to have sparked the investigation.

“But the situation is different now, the European judiciary has access to all the evidence. The international pressure, and the threat of sanctions, cannot be ignored any more,” he added.

The European judiciary has kept a close focus on the Riad Salameh case, and the delegation of prosecutors is set to come back to Lebanon in a few days for a second round of questioning.

Another question is whether these judicial developments could erode the support of the political class for the Central Bank Governor.

So far, this has not been the case, Riad Salameh has retained the backing of most of the ruling elite.

While Riad Salameh previously said that he was ready to step down from his 30-year stint when his fifth term ends in July, Caretaker Finance Minister Youssef Khalil told Reuters last week, that given Lebanon's “political environment” replacing him would be “very difficult”.

Share
0
Elie AS
Elie AS

Related posts

Riad Salame corruption
1 March 2023

Luxembourg agents start corruption probe in Beirut


Read more

Kahwagi meets with an official from Finance Bank in 2016. (Credit: Lebanese Army)

15 October 2022

What’s behind the case against Jean Kahwagi, and how a judicial maze and banking secrecy may derail the probe


Read more
5 October 2022

Colloque : Les députés et sénateurs européens ont débattu avec les acteurs principaux de la lutte contre la corruption au Liban


Read more
Related Posts
Riad Salame corruption

Luxembourg agents start corruption probe in Beirut

Head of central bank, accused of money launde...

Read More

What’s behind the case against Jean Kahwagi, and how a judicial maze and banking secrecy may derail the probe

Read More

La corruption au sein du Ministère des Déplacés de la guerre

Un ministère historiquement détenu par le P...

Read More

Colloque : Les députés et sénateurs européens ont débattu avec les acteurs principaux de la lutte contre la corruption au Liban

Read More
All Categories
  • Lebanon Corruption Files
  • News Articles
  • The Basics

© OEIL 2022

  • Privacy Policy
    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT