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.


Red Cross sets up Rafah emergency field hospital

Updated 57 min 27 sec ago
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Red Cross sets up Rafah emergency field hospital

  • Staff at the new facility will be able to treat around 200 people a day and can provide emergency surgical care

GENEVA: The International Red Cross and partners are opening a field hospital in southern Gaza on Tuesday to try to meet what it described as “overwhelming” demand for health services since Israel’s military operation on Rafah began last week.
Some health clinics have suspended activities while patients and medics have fled from a major hospital as Israel has stepped up bombardments in the southern sliver of Gaza where hundreds of thousands of uprooted people are crowded together.
“People in Gaza are struggling to access the medical care they urgently need due, in part, to the overwhelming demands for health services and the reduced number of functioning health facilities,” the International Committee of the Red Cross said. “Doctors and nurses have been working around the clock, but their capacity has been stretched beyond its limit.”
Staff at the new facility will be able to treat around 200 people a day and can provide emergency surgical care and manage mass casualties as well as provide pediatric and other services, the ICRC said.
“Medical staff are faced with people arriving with severe injuries, increasing communicable diseases which could lead to potential outbreaks, and complication related to chronic diseases untreated that should have been treated days earlier.”
The ICRC will maintain medical supplies to the facility while the Red Cross societies from 11 countries including Canada, Germany, Norway and Japan are providing staff and equipment.


Israel’s Rafah attack set Hamas talks ‘backward’: Qatar PM tells forum

Updated 41 min 8 sec ago
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Israel’s Rafah attack set Hamas talks ‘backward’: Qatar PM tells forum

  • Emir says Israel looks set to stay in Gaza waging war

DOHA, QATAR: Israel’s military operation in Rafah has set truce negotiations with Hamas “backward,” mediator Qatar said on Tuesday, adding that talks have reached “almost a stalemate.”
“Especially in the past few weeks, we have seen some momentum building but unfortunately things didn’t move in the right direction and right now we are on a status of almost a stalemate,” Prime Minister Mohammed bin Abdulrahman Al-Thani told the Qatar Economic Forum.
“Of course, what happened with Rafah has set us backward.”
Qatar, which has hosted Hamas’s political office in Doha since 2012, has been engaged — along with Egypt and the United States — in months of behind-the-scenes mediation between Israel and the Palestinian militant group.
Israel continued to fight Hamas in Rafah on Monday, despite US warnings against a full-scale assault on the south Gaza city that is crowded with displaced Palestinians.
“There is no clarity how to stop the war from the Israeli side. I don’t think that they are considering this as an option... even when we are talking about the deal and leading to a potential ceasefire,” Sheikh Mohammed said.
Israeli politicians were indicating “by their statements that they will remain there, they will continue the war. And there is no clarity on what Gaza will look like after this,” he added.


Nakba: Palestinians mark 76 years of dispossession as a potentially even larger catastrophe unfolds in Gaza

Updated 14 May 2024
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Nakba: Palestinians mark 76 years of dispossession as a potentially even larger catastrophe unfolds in Gaza

  • In Gaza, the refugees and their descendants make up around three-quarters of the population
  • Now, many Palestinians fear a repeat of their painful history on an even more cataclysmic scale

JERUSALEM: Palestinians on Wednesday will mark the 76th year of their mass expulsion from what is now Israel, an event that is at the core of their national struggle. But in many ways, that experience pales in comparison to the calamity now unfolding in Gaza.
Palestinians refer to it as the “Nakba,” Arabic for “catastrophe.” Some 700,000 Palestinians — a majority of the prewar population — fled or were driven from their homes before and during the 1948 Arab-Israeli war that followed Israel’s establishment.
After the war, Israel refused to allow them to return because it would have resulted in a Palestinian majority within its borders. Instead, they became a seemingly permanent refugee community that now numbers some 6 million, with most living in slum-like urban refugee camps in Lebanon, Syria, Jordan and the Israeli-occupied West Bank.
In Gaza, the refugees and their descendants make up around three-quarters of the population.
Israel’s rejection of what Palestinians say is their right of return has been a core grievance in the conflict and was one of the thorniest issues in peace talks that last collapsed 15 years ago. The refugee camps have always been the main bastions of Palestinian militancy.
Now, many Palestinians fear a repeat of their painful history on an even more cataclysmic scale.
All across Gaza, Palestinians in recent days have been loading up cars and donkey carts or setting out on foot to already overcrowded tent camps as Israel expands its offensive. The images from several rounds of mass evacuations throughout the seven-month war are strikingly similar to black-and-white photographs from 1948.
Mustafa Al-Gazzar, now 81, still recalls his family’s monthslong flight from their village in what is now central Israel to the southern city of Rafah, when he was 5. At one point they were bombed from the air, at another, they dug holes under a tree to sleep in for warmth.
Al-Gazzar, now a great-grandfather, was forced to flee again over the weekend, this time to a tent in Muwasi, a barren coastal area where some 450,000 Palestinians live in a squalid camp. He says the conditions are worse than in 1948, when the UN agency for Palestinian refugees was able to regularly provide food and other essentials.
“My hope in 1948 was to return, but my hope today is to survive,” he said. “I live in such fear,” he added, breaking into tears. “I cannot provide for my children and grandchildren.”
The war in Gaza, which was triggered by Hamas’ Oct. 7 attack into Israel, has killed over 35,000 Palestinians, according to local health officials, making it by far the deadliest round of fighting in the history of the conflict. The initial Hamas attack killed some 1,200 Israelis.
The war has forced some 1.7 million Palestinians — around three quarters of the territory’s population — to flee their homes, often multiple times. That is well over twice the number that fled before and during the 1948 war.
Israel has sealed its border. Egypt has only allowed a small number of Palestinians to leave, in part because it fears a mass influx of Palestinians could generate another long-term refugee crisis.
The international community is strongly opposed to any mass expulsion of Palestinians from Gaza — an idea embraced by far-right members of the Israeli government, who refer to it as “voluntary emigration.”
Israel has long called for the refugees of 1948 to be absorbed into host countries, saying that calls for their return are unrealistic and would endanger its existence as a Jewish-majority state. It points to the hundreds of thousands of Jews who came to Israel from Arab countries during the turmoil following its establishment, though few of them want to return.
Even if Palestinians are not expelled from Gaza en masse, many fear that they will never be able to return to their homes or that the destruction wreaked on the territory will make it impossible to live there. A recent UN estimate said it would take until 2040 to rebuild destroyed homes.
The Jewish militias in the 1948 war with the armies of neighboring Arab nations were mainly armed with lighter weapons like rifles, machine guns and mortars. Hundreds of depopulated Palestinian villages were demolished after the war, while Israelis moved into Palestinian homes in Jerusalem, Jaffa and other cities.
In Gaza, Israel has unleashed one of the deadliest and most destructive military campaigns in recent history, at times dropping 2,000-pound (900-kilogram) bombs on dense, residential areas. Entire neighborhoods have been reduced to wastelands of rubble and plowed-up roads, many littered with unexploded bombs.
The World Bank estimates that $18.5 billion in damage has been inflicted on Gaza, roughly equivalent to the gross domestic product of the entire Palestinian territories in 2022. And that was in January, in the early days of Israel’s devastating ground operations in Khan Younis and before it went into Rafah.
Even before the war, many Palestinians spoke of an ongoing Nakba, in which Israel gradually forces them out of Gaza, the West Bank and east Jerusalem, territories it captured during the 1967 war that the Palestinians want for a future state. They point to home demolitions, settlement construction and other discriminatory policies that long predate the war, and which major rights groups say amount to apartheid, allegations Israel denies.


US doesn’t believe ‘genocide’ occurring in Gaza—White House

Updated 14 May 2024
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US doesn’t believe ‘genocide’ occurring in Gaza—White House

  • White House National Security Adviser Jake Sullivan insists responsibility for peace lies with Hamas
  • Comments come as ceasefire talks stall and Israel continues striking the southern city of Rafah

WASHINGTON DC: The United States does not believe that genocide is occurring in Gaza but Israel must do more to protect Palestinian civilians, President Joe Biden’s top national security official said Monday.

As ceasefire talks stall and Israel continued striking the southern city of Rafah, White House National Security Adviser Jake Sullivan insisted that the responsibility for peace lay with militant group Hamas.

“We believe Israel can and must do more to ensure the protection and wellbeing of innocent civilians. We do not believe what is happening in Gaza is a genocide,” Sullivan told a briefing.

The US was “using the internationally accepted term for genocide, which includes a focus on intent” to reach this assessment, Sullivan added.

Biden wanted to see Hamas defeated but realized that Palestinian civilians were in “hell,” Sullivan said.

Sullivan said he was coming to the White House podium to “take a step back” and set out the Biden administration’s position on the conflict, amid criticism from both ends of the US political spectrum.

Biden has come under fire from Republicans for halting some weapons shipments to press his demands that Israel hold off a Rafah offensive, while there have been protests at US universities against his support for Israel.

The US president believed any Rafah operation “has got to be connected to a strategic endgame that also answered the question, ‘what comes next?’” Sullivan added.

This would avoid Israel “getting mired in a counterinsurgency campaign that never ends, and ultimately saps Israel’s strength and vitality.”


US calls on Iran to halt ‘unprecedented’ weapons transfers to Yemen’s Houthis for attacks on ships

Updated 14 May 2024
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US calls on Iran to halt ‘unprecedented’ weapons transfers to Yemen’s Houthis for attacks on ships

  • The Houthis have launched more than 50 attacks on shipping, seized one vessel and sunk another since November, the US Maritime Administration said late last month

UNITED NATIONS: The United States called on Iran on Monday to halt its transfer of an “unprecedented” amount of weaponry to Yemen’s Houthi rebels, enabling its fighters to carry out “reckless attacks” on ships in the Red Sea and elsewhere.
US deputy ambassador Robert Wood told the UN Security Council that if it wants to make progress toward ending the civil war in Yemen it must act collectively to “call Iran out for its destabilizing role and insist that it cannot hide behind the Houthis.”
He said there is extensive evidence that Iran is providing advanced weapons, including ballistic and cruise missiles, to the Houthis in violation of UN sanctions.
“To underscore the council’s concern regarding the ongoing violations of the arms embargo, we must do more to strengthen enforcement and deter sanctions violators,” Wood said.
The Houthis say their attacks on shipping in the Red Sea and Gulf of Aden are aimed at pressuring Israel to end its war with Hamas in Gaza, which has killed more than 35,000 Palestinians there. The war began after Hamas-led militants attacked Israel on Oct. 7, killing 1,200 people and taking some 250 others hostage.
The Houthis have launched more than 50 attacks on shipping, seized one vessel and sunk another since November, the US Maritime Administration said late last month.
Houthi attacks have dropped in recent weeks as the rebels have been targeted by a US-led airstrike campaign in Yemen. Shipping through the Red Sea and Gulf of Aden has declined because of the threat.
But Hans Grundberg, the UN special envoy for Yemen, warned the council that “hostilities continue” even though there has been a reduction in attacks on commercial and military vessels in the Red Sea, Gulf of Aden and the Indian Ocean as well as a reduction in the number of US and British airstrikes on targets in Yemen.
He pointed to an announcement by the Houthis that they will “expand the scope of attacks,” calling this “a worrisome provocation in an already volatile situation.”
Russian Ambassador Vassily Nebenzia told the council that the Israeli announcement on May 6 that it was starting its military operation in Gaza’s southern city of Rafah, where 1.2 million Palestinians had sought safety, ratcheted up the spiral of escalation in the region “another notch further.”
“There’s no doubt that this will have an impact on the situation in Yemen’s surrounding waters,” he said, noting the Houthis’ opposition to Israeli attacks that harm Palestinian civilians.
But, Nebenzia added, “We call for a swift cessation of the shelling of commercial vessels and any other actions that hamper maritime navigation.”
He sharply criticized the United States and its Western allies, saying their “totally unjustified aggressive strikes” in Yemen violate the UN Charter. He said they further complicate an already complex situation and won’t improve the situation in the Red Sea.
The war between the Houthis and pro-government forces in Yemen backed by a coalition of Gulf Arab states has raged since 2014. The Houthis swept down from the mountains, seized much of northern Yemen and the country’s capital, Sanaa, and forced the internationally recognized government to flee into exile to Saudi Arabia. Since then, more than 150,000 people have been killed by the violence and 3 million have been displaced.
Fighting has decreased markedly in Yemen since a truce in April 2022, but there are still hotspots in the country
Grundberg recalled that in December the Houthis and the government “took a courageous step toward a peaceful solution” by agreeing to a series of commitments that would provide for a nationwide ceasefire, ensure desperately needed humanitarian aid, and initiate a political process to end the conflict.
But UN humanitarian chief Martin Griffiths reported “alarmingly high” levels of severe food deprivation across the country that are expected to worsen during the lean season for crops starting in June.
Griffiths also expressed serious concern about a rapidly worsening cholera outbreak. He cited reports of 40,000 suspected cholera cases and over 160 deaths — “a sharp increase” since last month, the majority in Houthi-controlled areas “where hundreds of new cases are reported every day.”