BEIRUT: Lebanon’s public prosecutor has launched an investigation into central bank governor Riad Salameh, a judicial source said Friday.
The probe follows a Swiss legal request alleging that over $300 million had been embezzled from the bank through a company owned by Salameh’s brother.
The senior judicial source told Reuters the offices of Salameh’s younger brother Raja had been sealed off, with computers and files confiscated in the course of the investigation. The public prosecutor had no comment.
Riad Salameh, who denies any wrongdoing, had no comment when asked by Reuters about the opening of the investigation, the sealing of his brother’s office and the confiscation of the files.
The central bank also declined to comment, or to provide contact details for Raja Salameh, and Reuters was not immediately able to ask him for comment.
The Swiss attorney general’s office said in January that it had requested legal assistance from Lebanon in investigating “aggravated money laundering” and possible embezzlement relating to the Lebanese central bank, the Banque du Liban.
The Swiss request, seen by Reuters, alleges that Forry Associates, a company owned by Raja Salameh with a bank account in Switzerland that took commission on sales of Lebanese Eurobonds and Treasury bills, was paid $326 million by the central bank between 2002 and 2014 in transactions labelled as fees and commissions.
Most of the payments to Forry were then transferred to an account in Raja Salameh’s name.
More than $7 million were also transferred from Forry Associates between 2008 and 2012 to an account in Riad Salameh’s name, the document said.
Reuters was unable to find any contact details for Forry Associates.
The Swiss attorney general’s office had no comment about the content of the legal request other than repeating its statement from January. It has not said whether Riad Salameh is a suspect.
A Lebanese government official told Reuters in January that Swiss authorities were investigating money transfers by Riad Salameh and also looking into his brother and assistant. Salameh said any allegations about such transfers were “fabrications.”
Salameh said in a statement to the public prosecutor in January that he had answered questions sent on behalf of the Swiss and “asserted to him that any transfers were not made from the Lebanese central bank’s accounts.”
Lebanese prosecutor Ghassan Oueidat sent initial findings to Swiss authorities in February, state media said.
No further details about the case have been officially announced by Swiss authorities since then.
Lebanon’s crippled banking system is at the heart of a financial crisis that erupted in late 2019. Banks have since blocked most transfers abroad and cut access to deposits as dollars grew scarce.
The meltdown has crashed the currency, prompted a sovereign default and doomed at least half the population to poverty.
The Swiss investigation is one of several under way or being planned in Europe that target officials in Lebanon’s financial sector and its broader political class.
Lebanese prosecutor opens probe into central bank governor and brother
https://arab.news/6ytav
Lebanese prosecutor opens probe into central bank governor and brother
- The offices of Salameh's brother Raja had been sealed off, with computers and files confiscated in the course of the investigation
- Riad Salameh denies any wrongdoing and had no comment when asked by Reuters about the investigation
Hamas chief Haniyeh arrives in Turkiye for talks
- Fidan said he spoke with Haniyeh, who lives in Qatar, about how Hamas — designated as a terrorist organization by Israel, the United States and the European Union — “must clearly express its expectations, especially about a two-state solution”
ISTANBUL: A leader of Palestinian militant group Hamas, Ismail Haniyeh, arrived in Istanbul Friday evening for talks with Turkish President Recep Tayyip Erdogan as the death toll in Gaza passed 34,000.
A statement from Hamas Friday said Erdogan and Haniyeh would discuss the conflict in Gaza, adding that the head of the group’s political bureau was accompanied by a delegation.
Middle East tensions are at a high after Israel’s reported attack on Iran and Gaza bracing for a new Israeli offensive.
Erdogan insisted on Wednesday that he would continue “to defend the Palestinian struggle and to be the voice of the oppressed Palestinian people.”
But talking to journalists on Friday, he refused to be drawn on the details on the meeting.
Turkish Foreign Minister Hakan Fidan was in Qatar Wednesday and said he spent three hours with Haniyeh and his aides for “a wide exchange of views in particular about negotiations for a ceasefire.”
Qatar, a mediator between Israel and Hamas, acknowledged Wednesday that negotiations to end hostilities in Gaza and liberate hostages were “stalling.”
Fidan said he spoke with Haniyeh, who lives in Qatar, about how Hamas — designated as a terrorist organization by Israel, the United States and the European Union — “must clearly express its expectations, especially about a two-state solution.”
Erdogan’s last meeting with Haniyeh was in July 2023 when Erdogan hosted him and Palestinian president Mahmud Abbas at the presidential palace in Ankara. Haniyeh had last met Fidan in Turkiye on January 2.
The war in Gaza started after Hamas’s unprecedented attack on Israel on October 7 that resulted in the deaths of about 1,170 people, mainly civilians, according to an AFP tally of official Israeli figures.
Militants also took about 250 hostages. Israel says around 129 are believed to be held in Gaza, including 34 presumed dead.
Israel’s retaliatory military campaign has killed at least 34,012 people, mostly women and children, according to Gaza’s Hamas-run health ministry.
Huge blast at military base used by Iraqi Popular Mobilization Forces, sources say
- PMF sources said the strikes targeted a headquarters of the PMF at the Kalso military base near the town of Iskandariya around 50 km south of Baghdad
BAGHDAD: A huge blast rocked a military base used by Iraq’s Popular Mobilization Forces (PMF) to the south of Baghdad late on Friday, two PMF and two security sources told Reuters.
The two security sources said the blast was a result of an unknown airstrike, which happened around midnight Friday.
The two PMF sources pointed out the strikes did not lead to casualties but caused material damage.
PMF sources said the strikes targeted a headquarters of the PMF at the Kalso military base near the town of Iskandariya around 50 km south of Baghdad.
Government officials did not immediately respond to a Reuters request for comment.
The PMF started out as a grouping of armed factions, many close to Iran, that was later recognized as a formal security force by Iraqi authorities.
Factions within the PMF took part in months of rocket and drone attacks on US forces in Iraq amid Israel’s Gaza campaign but ceased to do so in February.
Leaders of Jordan and Pakistan call UAE president to express concern about effects of severe storm
- Leaders passed on their best wishes to the country as it recovers from the storms
DUBAI: The president of the UAE, Sheikh Mohammed bin Zayed Al-Nahyan, received telephone calls from King Abdullah of Jordan and Pakistan’s Prime Minister Shehbaz Sharif on Friday, during which they expressed concern about the effects of the severe weather, including unusually heavy rainfall, that battered parts of the country this week.
They also passed on their best wishes to the country as it recovers from the storms and “conveyed their heartfelt hopes for the safety and prosperity of the UAE and its people, praying for their protection from any harm,” the Emirates News Agency reported.
Sheikh Mohammed thanked both leaders for their warm sentiments, and emphasized the strong bonds between the UAE and their nations.
The UAE and neighboring Oman were hit by unprecedented rainfall and flooding on Tuesday, with more than 250 millimeters of rain falling in parts of the Emirates, considerably more than is normally seen in a year. Dubai International Airport was forced to close temporarily when runways were flooded.
Peshmerga fighter dies in Turkish strike in north Iraq
JEDDAH: A member of the Kurdish Peshmerga security forces was killed on Friday in a Turkish drone strike in the autonomous Kurdistan region of northern Iraq.
Ankara regularly carries out ground and air operations in the region against positions of the outlawed PKK, the Kurdish separatist group that has waged a decades-long insurgency against the Turkish state.
The victim of Friday’s attack died in a drone strike on his vehicle, said Ihsan Chalabi, mayor of the mountainous Sidakan district near Iraq’s borders with Turkiye and Iran.
For decades, Turkiye has operated several dozen military bases in northern Iraq in its war against the PKK, which Ankara and its Western allies consider a terrorist group.
Both Baghdad and the Kurdish regional government have been accused of tolerating Turkiye’s military activities to preserve their close economic ties.
At the beginning of April, a man described as “high-ranking military official” from the PKK was killed in a Turkish drone strike on a car in the mountainous Sinjar region, according to the Kurdistan counterterrorism services.
Turkish President Recep Tayyip Erdogan is expected to visit Baghdad on Monday on his first official visit to Iraq since 2011.
Iraq’s Defense Minister Thabet Al-Abassi in March ruled out joint military operations against the PKK, but said that Turkiye and Iraq would “work to set up a joint intelligence coordination center.”
Middle East in ‘shadow of uncertainty due to regional conflicts’
WASHINGTON: Economies in the Middle East and North Africa face a “shadow of uncertainty” from ongoing tensions in the region, a senior IMF official said.
“We are in a context where the overall outlook is cast into shadows,” Jihad Azour, the International Monetary Fund’s director for the Middle East and Central Asia department, said in an interview in Washington.
“The shadow of uncertainty on the geopolitical side is an important one,” added Azour, a recent candidate for the next Lebanese president.
In the face of the ongoing conflicts in Gaza and Sudan and a recent cut to oil supplies by Gulf countries, the IMF has pared back its growth outlook for the Middle East and North Africa region once again.
FASTFACT
Economic activity in Gaza has ‘come to a standstill’ and the IMF estimates that economic output in the West Bank and Gaza contracted by six percent last year.
The IMF expects growth in MENA of 2.7 percent this year — 0.2 percentage points below its January forecast — before picking up again next year, the IMF said in its regional economic outlook report.
The risks to growth in the MENA region remain heightened, the IMF said, pointing to the danger of greater regional spillovers from the ongoing Israel-Gaza war.
“We have concerns about the immediate and lasting impact of conflict,” Azour said.
The IMF report said that economic activity in Gaza has “come to a standstill” and estimates that economic output in the West Bank and Gaza contracted by 6 percent last year.
The IMF said the report excludes economic projections for the West Bank and Gaza for the next five years “on account of the unusually high degree of uncertainty.”
The IMF cannot lend to the West Bank and Gaza because they are not IMF member countries.
However, Azour said it has provided the Palestinian Authority and the central bank with technical assistance during the current conflict.
“When we move into the reconstruction phase, we will be part of the international community support to the region,” he added.
Azour also discussed the situation in Sudan, where thousands have been killed in a civil war that has also devastated the economy, causing it to contract by almost 20 percent last year, according to the IMF.
“The country is barely functioning, institutions have been dismantled,” he said.
“And for an economy, for a country like Sudan, with all this potential, it’s important to stop the bleeding very quickly and move to a phase of reconstruction,” he added.
The recent Houthi attacks have particularly badly hit the Egyptian economy on Red Sea shipping, which caused trade through the Egypt-run Suez Canal to more than halve — depriving the country of a key source of foreign exchange.
Egypt reached an agreement last month to increase an existing IMF loan package from $3 billion to $8 billion after its central bank hiked interest rates and allowed the pound to plunge by nearly 40 percent.
A key pillar of the current IMF program is the privatization of Egypt’s state-owned enterprises, many of which are owned by or linked to the military.
“This is a priority for Egypt,” Azour said. Egypt needs to have a growing private sector and give space for the private sector to create more jobs.”
“We have an opportunity to re-engineer the state’s role, to give the state more responsibility as an enabler and less as a competitor,” he said.
