Fresh chaos in Lebanon as central bank boss charged with fraud and embezzlement

Longtime central bank governor Riad Salameh has dismissed accusations of illicit enrichment as part of an effort to scapegoat him for Lebanon’s financial collapse. (File/Reuters)
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Updated 24 February 2023
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Fresh chaos in Lebanon as central bank boss charged with fraud and embezzlement

  • Investigating judge Raja Hamoush filed the charges against Riad Salameh, governor of the Banque du Liban, his brother Raja and an adviser, Marianne Hoayek
  • They follow an 18-month investigation into allegations that Salameh and his brother embezzled more than $300m from the central bank between 2002 and 2015

BEIRUT: Lebanon’s political and economic meltdown descended into farce on Thursday when the head of the central bank was charged with embezzlement, money laundering and tax evasion.

Investigating judge Raja Hamoush filed the charges against Riad Salameh, governor of the Banque du Liban, his brother Raja and an adviser, Marianne Hoayek. Hamoush referred the case to Investigative Judge Charbel Abou Samra.

The charges follow an 18-month investigation by Lebanese authorities into allegations that Salameh and his brother embezzled more than $300 million from the central bank between 2002 and 2015. Judicial authorities in at least five European countries are investigating similar allegations.

The brothers deny the charges. Riad Salameh said the accusations of illicit enrichment are part of an effort to scapegoat him for Lebanon’s financial collapse, which has brought increased scrutiny of his role as governor. The head of the central bank since 1993, he still enjoys backing from powerful Lebanese leaders.

He said the charges were “not an indictment” and pledged to abide by judicial procedures. “One is innocent until proven guilty by a court of law,” he said.

A judicial source told Arab News the investigation began in January 2022, when Salameh was summoned three times for questioning at the Justice Palace in Beirut.

The investigating judge is now likely to again summon Salameh for questioning, according to the source, and would have a number of options including detaining the governor or releasing him on bail.

Many judges in Lebanon owe their appointments to politicians and their decisions are often overtly politicized. The judicial source told Arab News the charges against Salameh were in part political retaliation for an order on Wednesday by caretaker Prime Minister Najib Mikati that instructed police and security forces to ignore instructions from Judge Ghada Aoun, who is investigating banking crimes.

Mikati had sent a letter to Interior Minister Bassam Mawlawi in which he said said Aoun had overstepped her authority and “committed violations in lawsuits relating to banks, had previously refused the warrants issued against her and ignored all the dismissal requests made against her.”

Aoun responded by describing the prime minister’s edict as “unprecedented interference in the work of the judiciary.” She is prosecuting several Lebanese banks over money-laundering allegations, based on lawsuits filed by activists from the Pioneers of Justice organization.

The judicial source told Arab News: “Judge Aoun is affiliated with the Free Patriotic Movement and is politicized, and it seems that the movement decided to respond to Mikati’s move by pushing for action on another judicial file, which is the one with Judge Hamoush.”

Nicolas Nahas, an adviser to Mikati, said Mikati and Mawlawi made their decision because they believe Aoun’s actions are significantly flawed.

“The public prosecutor had previously issued a decision prohibiting her from interfering with the files she is investigating but she didn’t abide by it,” he added.

The Amwalouna Lana association held a protest outside the Justice Palace in Baabda on Thursday in support of Aoun. Activists held signs that read “No to political interference with the judiciary” and “No to the punishment of those who have the courage to face the corrupt people.”

Aoun’s spokesperson, lawyer Pascale Fahd, said the judge “continues in her work and performs her duties in the case of depositors and banks and combating money laundering.”

The lawyer added: “The decision taken against her is illegal and does not stop her work. Judge Ghada Aoun has the appropriate and legal ways to implement arrest warrants. She will not watch the Lebanese people being stolen from, nor will she stand by as our prime minister takes the side of those who stole from us, and protects them.”

The Lebanese Judges Club, an activist group that emerged during the current political deadlock, criticized “the blatant interference in the judiciary, which constitutes a dangerous precedent that violates the most basic legal principles, and should be retracted immediately without delay.”

Salameh current term as governor is due to end in July and he has said he does not intend to remain in the post. The Free Patriotic Movement tried to replace Salameh as governor during former President Michel Aoun’s time in office but other parties rejected the attempts.

Industrial action by banks in Lebanon began on Feb. 7 and the strike continues. Their work is currently limited to ensuring ATMs continue to operate.

The action was taken after Aoun issued summonses for bankers and ordered banks to lift the veil of secrecy surrounding some accounts. Industry figures argue that her actions are damaging the reputation of the Lebanese banking sector abroad for reasons related to internal political conflicts.


Turkiye to tell US that Syria needs to be rid of terrorists, Turkish source says

Updated 2 sec ago
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Turkiye to tell US that Syria needs to be rid of terrorists, Turkish source says

  • Ankara has repeatedly demanded that its NATO ally Washington halt its support for the YPG
ANKARA: Turkish officials will tell US Under Secretary of State John Bass during talks in Ankara this week that Syria needs to be rid of terrorist groups to achieve stability and security, a Turkish Foreign Ministry source said on Thursday.
Bass’ visit comes amid repeated warnings from Turkiye that it could mount a cross-border military offensive into northeastern Syria against the Kurdish YPG militia if the group does not meet its demands.
The YPG spearheads the US-allied Syrian Democratic Forces (SDF), which played an important role in defeating Islamic State in Syria. Ankara views the group as terrorists and an extension of the Kurdish militants waging a decades-old insurgency against the Turkish state, and has said it must lay down its weapons and disband.
During his visit to Ankara on Thursday and Friday, Bass will hold talks with Turkiye’s deputy foreign ministers, the source said, adding the talks would focus on Syria.
Talks are expected to “focus on steps to establish stability and security in Syria and to support the establishment of an inclusive government,” the source said.
“Naturally, the Turkish side is expected to strongly repeat that, for this to happen, the country needs to be rid of terrorist elements,” the person said, adding the sides would also discuss expanding the US sanctions exemption to Syria for the country to rebuild.
Ankara has repeatedly demanded that its NATO ally Washington halt its support for the YPG. It has mounted several incursions against the group and controls swathes of territory in northern Syria.
Syria’s Kurdish factions have been on the back foot since the ousting of former President Bashar Assad, with the new administration being friendly to Turkiye.

37 killed in north Syria clashes between pro-Turkiye, Kurdish forces: monitor

Updated 9 min 37 sec ago
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37 killed in north Syria clashes between pro-Turkiye, Kurdish forces: monitor

  • Latest reported fighting comes despite the US saying it was working to address Turkiye’s concerns in Syria
  • Syria’s Kurds control much of the oil-rich northeast of the country, where they enjoy de facto autonomy

DAMASCUS: Battles between Turkish-backed groups, supported by air strikes, and Kurdish-led forces killed 37 people on Thursday in Syria’s northern Manbij region, a war monitor said.
The latest reported fighting comes despite the United States saying Wednesday that it was working to address Turkiye’s concerns in Syria to dissuade the NATO ally from escalating an offensive against Kurdish fighters.
The Syrian Observatory for Human Rights war monitor reported “fierce battles in the Manbij countryside... in the past hours between the (Kurdish-led) Syrian Democratic Forces and the (Turkish-backed) National Army factions... with Turkish air cover.”
“The attacks killed 37 people in a preliminary toll,” mostly Turkish-backed combatants, but also six SDF fighters and five civilians, said the British-based Observatory with a network of sources inside Syria.
The monitor said at least 322 people have been killed in fighting in the Manbij countryside since last month.
On Wednesday, Mazloum Abdi, who heads the US-backed SDF, said his group supported “the unity and integrity of Syrian territory.” In a written statement, he called on Syria’s new authorities “to intervene in order for there to be a ceasefire throughout Syria.”
Abdi’s comments followed what he called a “positive” meeting between Kurdish leaders and the Damascus authorities late last month.
Turkish-backed factions in northern Syria resumed their fight with the SDF at the same time as Islamist-led militants were launching an offensive on November 27 that overthrew Syrian president Bashar Assad just 11 days later.
The pro-Ankara groups succeeded in capturing Kurdish-held Manbij and Tal Rifaat in northern Aleppo province, despite US-led efforts to establish a truce in the Manbij area.
The fighting has continued since, with mounting casualties.
On Wednesday Washington’s Secretary of State Antony Blinken said Turkiye had “legitimate concerns” about Kurdistan Workers’ Party (PKK) militants inside Syria and called for a resolution in the country that includes the departure of “foreign terrorist fighters.”
“That’s a process that’s going to take some time, and in the meantime, what is profoundly not in the interest of everything positive we see happening in Syria would be a conflict, and we’ll work very hard to make sure that that doesn’t happen,” Blinken told reporters in Paris.
Turkiye on Tuesday threatened a military operation against Kurdish forces in Syria unless they accepted Ankara’s conditions for a “bloodless” transition after Assad’s fall.
Syria’s Kurds control much of the oil-rich northeast of the country, where they enjoyed de facto autonomy during much of the civil war since 2011.
The US-backed SDF spearheaded the military campaign that ousted Daesh group militants from their last territory in Syria in 2019.
But Turkiye accuses the main component of the SDF, the People’s Protection Units (YPG), of being affiliated with the PKK, which has waged a four-decade insurgency against the Turkish state.
The PKK is considered a terrorist organization by Turkiye, the United States, the European Union and most of Turkiye’s Western allies.
Turkiye has mounted multiple operations against the SDF since 2016.


Gaza rescuers say children among 12 killed in Israeli strikes

Updated 09 January 2025
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Gaza rescuers say children among 12 killed in Israeli strikes

  • Israeli air strikes and shelling continues across Gaza, even as mediators push on with their efforts to halt the fighting

GAZA STRIP, Palestinian Territories: Gaza’s civil defense agency said Israeli forces pounded the Palestinian territory on Thursday, killing at least 12 people including three girls, 15 months into the war.
The latest strikes came as Qatar, Egypt, and the United States mediate negotiations in Doha between Israel and Hamas militants for a deal to end the fighting in Gaza and secure the release of hostages.
Three girls and their father were killed when an air strike hit their house in Nuseirat refugee camp in central Gaza, the civil defense agency reported.
Local paramedic Mahmud Awad said he helped transfer the bodies of two girls and their father, Mahmud Abu Kharuf to a hospital.
“Their bodies were found under the rubble of the house that the occupation bombed in the Nuseirat camp,” Awad said. He added that the body of the third girl had been found earlier by residents.
In a separate strike, eight people were killed when their house was struck in the town of Jabalia in northern Gaza, where the army has focused its offensive since October 6.
Several more were wounded in that strike, the civil defense agency said.
Israeli air strikes and shelling continues across Gaza, even as mediators push on with their efforts to halt the fighting and secure a deal for the release of hostages still held in Gaza.
On Wednesday, US Secretary of State Antony Blinken said in Paris that a ceasefire was “very close.”
“I hope that we can get it over the line in the time that we have,” Blinken said, referring to President-elect Donald Trump’s inauguration on January 20.
But if not, “I believe that when we get that deal – and we’ll get it – it’ll be on the basis of the plan that President (Joe) Biden put before the world back in May.”
In May, Biden unveiled a three-phase plan for the release of the hostages and a ceasefire in Gaza.


After 12 failed attempts over 2 years, Lebanon’s parliament will try to pick a president

Updated 09 January 2025
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After 12 failed attempts over 2 years, Lebanon’s parliament will try to pick a president

  • There are indications that Thursday’s vote may produce a head of state
  • The leading candidate is Lebanese army commander Joseph Aoun

BEIRUT: Lebanon’s parliament was set Thursday to make yet another effort to elect a president, filling a vacuum that’s lasted for more than two years.
While 12 previous attempts have failed to choose a successor to former President Michel Aoun, whose term ended in October 2022, there are indications that Thursday’s vote may produce a head of state.
The leading candidate is Lebanese army commander Joseph Aoun, no relation to the former president. He is widely seen as the preferred candidate of the United States and Saudi Arabia, whose assistance Lebanon will need as it seeks to rebuild after a 14-month conflict between Israel and the Lebanese militant group Hezbollah.
Hezbollah previously backed another candidate, Suleiman Frangieh, the leader of a small Christian party in northern Lebanon with close ties to former Syrian President Bashar Assad.
However, on Wednesday, Frangieh announced he had withdrawn from the race and endorsed Aoun, apparently clearing the way for the army chief.
Lebanon’s fractious sectarian power-sharing system is prone to deadlock, both for political and procedural reasons. The small, crisis-battered Mediterranean country has been through several extended presidential vacancies, with the longest lasting nearly 2 1/2 years between May 2014 and October 2016. It ended when former President Michel Aoun was elected.
As a sitting army commander, Joseph Aoun is technically barred from becoming president by Lebanon’s constitution. The ban has been waived before, but it means that Aoun faces additional procedural hurdles.
Under normal circumstances, a presidential candidate in Lebanon can be elected by a two-thirds majority of the 128-member house in the first round of voting, or by a simple majority in a subsequent round.
But because of the constitutional issues surrounding his election, Aoun would need a two-thirds majority even in the second round.
Other contenders include Jihad Azour, a former finance minister who is now the director of the Middle East and Central Asia Department at the International Monetary Fund; and Elias Al-Baysari, the acting head of Lebanon’s General Security agency.
The next head of state will face daunting challenges apart from implementing the ceasefire agreement that ended the Israel-Hezbollah war and seeking funds for reconstruction.
Lebanon is six years into an economic and financial crisis that decimated the country’s currency and wiped out the savings of many Lebanese. The cash-strapped state electricity company provides only a few hours of power a day.
The country’s leaders reached a preliminary agreement with the IMF for a bail-out package in 2022 but have made limited progress on reforms required to clinch the deal.


Israeli military tightens media rules over war crimes prosecution concern

Updated 09 January 2025
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Israeli military tightens media rules over war crimes prosecution concern

  • Under the new rules, media interviewing soldiers of the rank of colonel and under will not be able to display their full names or faces, similar to the rules that already exist for pilots, an Israeli military spokesperson says

JERUSALEM: The Israeli military placed new restrictions on media coverage of soldiers on active combat duty amid growing concern at the risk of legal action against reservists traveling abroad over allegations of involvement in war crimes in Gaza.
The move came after an Israeli reservist vacationing in Brazil left the country abruptly when a Brazilian judge ordered federal police to open an investigation following allegations from a pro-Palestinian group that he had committed war crimes while serving in Gaza.
Under the new rules, media interviewing soldiers of the rank of colonel and under will not be able to display their full names or faces, similar to the rules that already exist for pilots and members of special forces units, Lt. Col. Nadav Shoshani, an Israeli military spokesperson told reporters.
The interviewees must not be linked to a specific combat event they participated in.
“This is our new guideline to protect our soldiers and to make sure they are safe from these types of incident hosted by anti-Israel activists around the world,” Shoshani said.
He said that under existing military rules, soldiers were already not supposed to post videos and other images from war zones on social media “even though that’s never perfect and we have a large army.” There were also long-standing rules and guidelines for soldiers traveling abroad, he said.
Shoshani said activist groups, such as the Belgium-based Hind Rajab Foundation, which pushed for the action in Brazil, were “connecting the dots” between soldiers who posted material from Gaza and then posted other photos and videos of themselves while on holiday abroad.
Last year, the International Criminal Court issued arrest warrants against Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant, as well as a Hamas leader, Ibrahim Al-Masri, over alleged war crimes in Gaza, drawing outrage in Israel.
Shoshani said there had been “a handful” of cases where reservists traveling abroad had been targeted, in addition to the case in Brazil, all of which had been started by activist groups pushing authorities for an investigation.
“They didn’t open an investigation, they didn’t press charges or anything like that,” he said.