Former Lebanese central bank chief detained in corruption probe

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Longtime chief of Lebanon’s Central Bank Riad Salameh poses as he leaves office after a 30-year tenure, at Lebanon’s Central Bank building in Beirut, Lebanon, July 31, 2023. (Reuters)
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Lebanon’s Central Bank Governor Riad Salameh speaks during an interview for Reuters Next conference, in Beirut, Lebanon, Nov. 23, 2021. (Reuters)
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Updated 03 September 2024
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Former Lebanese central bank chief detained in corruption probe

  • Riad Salameh was detained by order of the public prosecutor, Judge Jamal Al-Hajjar, and will soon face investigation
  • Salameh was questioned for three hours about the alleged embezzlement and laundering of more than $110 million through Optimum Invest

BEIRUT: Former Lebanese central bank governor Riad Salameh was detained on Tuesday on suspicion of embezzlement.

It comes as Lebanon awaits a decision by the Middle East and North Africa Financial Action Task Force, or MENA FATF, concerning the country’s anti-money laundering and counterterror financing systems.

Salameh was detained by order of the public prosecutor, Judge Jamal Al-Hajjar, and will soon face investigation.

He was questioned for three hours about the alleged embezzlement and laundering of more than $110 million through Optimum Invest, a Lebanese brokerage firm.

The company had close ties to the central bank from 2015-2018, during Salameh’s governorship.

Al-Hajjar said: “The judicial step taken against Salameh is preventive detention, effective for four days, after which he will be referred by the Beirut Court of Appeal to the investigating judge, who will question him and make an appropriate judicial decision, which could include an arrest warrant.”

A security source told Arab News that Salameh “attended the interrogation session at the Justice Palace in Beirut without being accompanied by his lawyer.”

It was the first time that Salameh has appeared before the judiciary since the end of his term in July 2023.

In the three years from 2015-2018, Lebanon’s central bank traded public treasury bonds with Optimum, making quick profits on a fast turnaround. The strategy resulted in profits of up to $8 billion, though the identities of the beneficiaries remain unclear.

Salameh faces charges in Lebanon of crimes including money laundering, embezzlement and illicit enrichment. He previously denied all charges during earlier interrogations. A search and investigation warrant has been issued against him, preventing him from traveling.

Dozens of guards took part in the operation to transfer Salameh from the courthouse to the General Directorate of Internal Security Forces for his detention.

Prime Minister Najib Mikati described the arrest as a “judicial decision,” adding: “We will not intervene. The judiciary is fulfilling its duty, and we are all under the rule of law.”

Justice Minister Henry Khoury said: “The judiciary has acted, and we respect its decision.”

The grace period provided by the MENA FATF at the behest of the central bank of Lebanon is expected to end in the coming weeks, after which Lebanon will be placed on the gray list.

Throughout the grace period, Lebanon’s government has failed to implement any of its promised reforms, and the parliament has yet to pass essential laws and regulations to protect the country’s financial system from abuse.

Recently, a formal economic source said: “Lebanon is running out of time to implement the necessary initial reforms to avoid being placed on the FATF’s gray list. The classification is imminent, and efforts by relevant officials in the Lebanese government are underway to engage with international financial entities in hopes of securing additional time for Lebanon to undertake the required reforms, thereby preventing the negative repercussions on the Lebanese economy that would result from such a classification.”

The source added: “The possibility of granting additional time to Lebanon is quite feasible, given that the country has been experiencing a genuine state of war for almost a year. Furthermore, the relevant international financial entities will take this matter into consideration.”

A delegation from the central bank including judges, security officers, legal experts and specialists is scheduled to attend a meeting of the FATF group in Brussels. The purpose of the meeting is to inform the Lebanese side about the progress of financial reforms.

According to media reports, the acting governor of the central bank of Lebanon, Wassim Mansouri, will travel to London to engage with correspondent banks and inform them of the situation in Lebanon and the measures being implemented by the government.

Lebanon is struggling to complete judicial rulings on people accused of money laundering, and law enforcement is failing to address financial crime in the country.

This situation is particularly concerning given the remarkable expansion of the country’s cash economy, which is estimated by the World Bank to be worth almost $10 billion, representing about 50 percent of gross domestic product.

If Lebanon is placed on the gray list, its banking industry faces isolation from the global economic system, and its financial operations will be subject to fresh international scrutiny.

The oversight will be authorized to scrutinize all money transfers exiting Lebanon, including examining sources, purposes and the legitimacy of funds.

The Lebanese government and central bank will also be subject to the same conditions.


Egypt welcomes UN’s decision to establish position of special envoy on water

Indonesian Foreign Minister Retno Marsudi will assume the post of UN special envoy on water in November. (File/AFP)
Updated 7 sec ago
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Egypt welcomes UN’s decision to establish position of special envoy on water

  • Indonesian Foreign Minister Retno Marsudi to assume post in November

CAIRO: Egypt has welcomed the decision of the UN Secretary-General Antonio Guterres to establish the position of a UN special envoy on water, and the announcement that Indonesian Foreign Minister Retno Marsudi will assume the high-ranking post in November.

In a statement issued by the Ministry of Foreign Affairs, Cairo said Egypt, in collaboration with Germany, had led an extensive initiative in preparation for the 2023 UN Water Conference.

This initiative, which successfully garnered the support of 151 countries, aimed at establishing the position of UN special envoy on water to support member states, particularly water-scarce countries, to help address the challenge of achieving the sixth Sustainable Development Goal regarding everyone having access to water.

Guterres’ decision to create the position is a culmination of Egypt’s efforts to enhance multilateral action in response to emerging challenges.

Egypt looked forward to enhancing cooperation with the new UN special envoy to achieve the goals of the 2030 Agenda in addressing water scarcity, the statement added.

The news comes in light of the significant efforts made by Egypt for the rational management of water resources and the promotion of transboundary cooperation, in accordance with international law.

Meanwhile, Egypt’s Minister of Foreign Affairs Badr Abdelatty received a phone call on Friday from the UN secretary-general. The call addressed the latest developments in the Gaza Strip and the dangerous escalation of conflict in the West Bank.

Tamim Khallaf, the spokesperson for the Ministry of Foreign Affairs, said the call emphasized the importance of an immediate ceasefire, the delivery of humanitarian aid to the Gaza Strip, and facilitating the work of the UN Relief and Works Agency for Palestine Refugees.

Abdelatty reiterated Egypt’s position, which focuses on halting aggression and promptly delivering humanitarian aid to the region. He said peace, security, and stability in the area could not be achieved without adhering to agreed-upon references and establishing a Palestinian state based on June 4, 1967, lines, with East Jerusalem as its capital.

The UN secretary-general spoke of his appreciation of the roles of Egypt, Qatar, and the US in mediation efforts aimed at reaching a ceasefire agreement and exchanging hostages and detainees. He expressed hope in achieving agreement as soon as possible.


Stricken Red Sea tanker salvage makes ‘slow’ progress: Greek military

Updated 15 September 2024
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Stricken Red Sea tanker salvage makes ‘slow’ progress: Greek military

  • The operation is being overseen by the European Union’s Red Sea naval mission Aspides
  • Damage to the vessel had threatened a Red Sea oil spill four times the size of the 1989 Exxon Valdez disaster off Alaska

ATHENS: The towing of an abandoned tanker struck by Yemen’s Houthis in August, threatening environmental disaster, is proceeding slowly for a second day, a Greek military source told AFP Sunday.
The operation to tow the Greek-flagged Sounion which began Saturday “is proceeding at a very slow pace,” the source said, adding that it was “initially headed north” without revealing a destination.
The tanker was hit on August 21 by Iran-backed Houthis with missiles off the coast of Hodeida while carrying 150,000 tons of crude oil.
After the initial strike, the Houthis returned and detonated charges on the ship’s deck, setting off new fires.
Damage to the vessel had threatened a Red Sea oil spill four times the size of the 1989 Exxon Valdez disaster off Alaska.
The operation is being overseen by the European Union’s Red Sea naval mission, Aspides, which Sunday said the tanker was being towed to a “safe location.”
“The salvage of the MV SOUNION is a complex operation and consists of various phases,” the mission said on X, formerly Twitter.
It added aerial shots of the tanker escorted by two warships, one dated Sunday, in which it is still emitting smoke.
Greek state news agency ANA said the tugboat was escorted by three frigates, helicopters and a special forces team, without disclosing the states of origin.
Fires were still visible on board in Aspides pictures on X dated Saturday.
“When it reaches safe mooring there will be an attempt to put out the fire and preliminary steps will be taken to secure the cargo from leaking,” the Greek source said Sunday.
The ships’ radars have been turned off for security reasons.
The tanker had been anchored west of the militia-held port city of Hodeida, midway between Yemen and Eritrea.
The Sounion’s crew — made up of 23 Filipinos and two Russians — was rescued the day after the attack by a French frigate serving with the EU mission.
The EU naval force was formed in February to protect merchant vessels in the Red Sea from attacks by the Houthi militia, who have waged a campaign against international shipping that they say is intended to show solidarity with Hamas in its war with Israel in the Gaza Strip.
Since November, the Houthi attacks have caused the sinking of two ships and deaths of at least four crew members.
The Houthis have been firing drones and missiles at ships in the vital commercial route, saying they are targeting vessels linked to Israel, the US and Britain in solidarity with Palestinians over the Israel-Hamas war in Gaza.


Israeli leaflets tell south Lebanon residents to evacuate

Updated 15 September 2024
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Israeli leaflets tell south Lebanon residents to evacuate

  • It was the first time Israelis had told residents of south Lebanon to evacuate in 11 months
  • The leaflet read in Arabic: “Anyone present in this area after this time will be considered a terrorist.”

BEIRUT: Israel dropped leaflets over a Lebanon border village Sunday urging residents to leave, state-run media said, but Israel’s military told AFP a brigade had taken the initiative without approval.
It was the first time Israelis had told residents of south Lebanon to evacuate in 11 months of cross-border fire between Hezbollah and Israel over the Gaza war, triggered by Hezbollah ally Hamas’s October 7 attack on Israel.
“The Israeli enemy dropped leaflets over Wazzani calling on those in the area and its surroundings to evacuate,” the official National News Agency said, referring to a southern border village.
Wazzani mayor Ahmed Al-Mohammed shared with AFP a picture of the leaflets that showed a map of the region with the areas marked for evacuation marked in red.
The leaflet read in Arabic: “To all residents and refugees living in the area of the camps, Hezbollah is firing from your region. You must immediately leave your homes and head north of the Khiam region before 04:00 p.m. (1300 GMT). Do not return to this area until the end of the war.”
It added: “Anyone present in this area after this time will be considered a terrorist.”
Wazzani is an agricultural region where Syrians are often hired to work the land.
Asked about the incident, an Israeli military spokeswoman said the leaflets had been dropped by drone in an area from which rockets had been fired into northern Israel.
“This was an initiative of the 769 Brigade, it was not approved by the Northern Command. An investigation has been opened,” she added.
In the Gaza Strip, Israeli aircraft regularly drop leaflets urging residents to evacuate before an attack.
On Saturday, Hezbollah’s second-in-command Naim Qassem warned that an all-out war by Israel aimed at returning 100,000 displaced people to their homes in areas near the Lebanon border would displace “hundreds of thousands” more Israelis.
The cross-border violence since early October has killed 623 people in Lebanon, mostly fighters but also including at least 141 civilians, according to an AFP tally.
On the Israeli side, including in the annexed Golan Heights, authorities have announced the deaths of at least 24 soldiers and 26 civilians.


Leading Lebanese novelist Elias Khoury dies at 76

Updated 15 September 2024
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Leading Lebanese novelist Elias Khoury dies at 76

  • Khoury, a leading voice of Arab literature, had been ill for months and admitted and discharged from hospital several times over the past year
  • Khoury had been known for his political stances from his support of Palestinians to his harsh criticism of Israel

BEIRUT: Lebanese novelist Elias Khoury who dedicated much of his writings to the Palestinian cause and taught at universities around the world, making him one of Lebanon’s most prominent intellectuals, has died. He was 76.
Khoury, a leading voice of Arab literature, had been ill for months and admitted and discharged from hospital several times over the past year until his death early Sunday, Al-Quds Al-Arabi daily that he worked for said.
In addition to his novels, Khoury wrote articles in different Arab media outlets over the past five decades making him well known throughout the Arab world.
Two days after the Israel-Hamas war broke out on Oct. 7, Khoury wrote an article in Al-Quds A-Arab daily titled “It’s Palestine.” Khoury wrote then that “the biggest open-air prison, the besieged Ghetto of Gaza, has launched a war against Israel, occupied settlements and forced settlers to flee.”
Born in Beirut on July 12, 1948, Khoury had been known for his political stances from his support of Palestinians to his harsh criticism of Israel and what he called its “brutal” settling policy in Palestinian territories. He studied at the Lebanese University and later at the University of Paris, where he received a PhD in social history.
“The Catastrophe began in 1948 and it is still going on,” he once wrote referring to Israel’s settlement policies in occupied Palestinian territories. The “nakba,” or “catastrophe” is a term used by many Arabs to describe the displacement of hundreds of thousands of Palestinians when Israel was created in 1948.
Khoury was an outspoken supporter of Arab uprisings that broke out in the region starting in 2011 and toppled several governments.
“The question is not why the Arab revolts broke out,” Khoury wrote after uprisings that toppled long-serving leaders such as Hosni Mubarak of Egypt and Tunisia’s Zine El Abidine Ben Ali. “The question is not how people tore down the wall of fear but how fear built Arab kingdoms of silence for five decades.”
Khoury, who belonged to a Greek Orthodox Christian family, took part in Lebanon’s 1975-90 civil war and was wounded in one of the battles.
From 1992 until 2009, Khoury was the editor of the cultural section of Lebanon’s leading An-Nahar newspaper. Until his death, he was the editor-in-chief of the Palestine Studies magazine, a bulletin issued by the Beirut-based Institute for Palestine Studies.
His first novel was published in 1975, but his second, Little Mountain, which he released in 1977 and was about Lebanon’s devastating civil war was very successful.
Bab Al-Shams, or Gate of the Sun, released in 2000, was about Palestinian refugees in Lebanon since 1948. A movie about the novel was made in Egypt.
His novels were translated to several languages including Hebrew.
Khoury also taught at different universities including New York University, Columbia, Princeton and Houston, as well as the University of London.


Jordan King Abdullah II accepts cabinet resignation

Updated 15 September 2024
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Jordan King Abdullah II accepts cabinet resignation

  • The Jordanian King appointed Jaafar Hassan as prime minister
  • Outgoing government will stay in a caretaker capacity until the formation of a new cabinet

DUBAI: Jordan's King Abdullah II on Sunday accepted the resignation of Prime Minister Bisher Khasawneh's government, ordering it to stay in a caretaker capacity until the formation of a new cabinet, the Royal Hashemite Court said on Sunday.

The Jordanian King has appointed Jaafar Hassan as prime minister. 

Hassan, a widely respected technocrat, was Jordan's former planning minster. He recieved his education at Harvard University in Cambridge, Massachusetts. He is also the head of King Abdullah's office. 

He will replace veteran diplomat and former palace advisor Al-Khasawneh, who is considered the longest-serving prime minister during King Abdullah II's reign.

Khasawneh, 55, had headed the government since October 2020.

He submitted his resignation on Sunday to King Abdullah II after parliamentary elections saw some gains for the Islamist opposition.

The country's leading Islamist party, the Islamic Action Front, came out top in Tuesday's poll, winning 31 out of the 138 seats in parliament.
The IAF is a political offshoot of the Muslim Brotherhood in Jordan, and the result gives the Islamists their largest representation since 1989.

The cabinet usually quits after a parliamentary election in line with a constitutional custom. 
Jordan's parliament is bicameral. In addition to the elected parliament there is also a senate with 69 members appointed by the monarch.