Angry protesters burn ATM at bank in Beirut

Protesting depositors carry placards criticizing bank owners for withholding their savings at a protest near Parliament in downtown Beirut, on May 9, 2023. (AP)

• With the end of central bank Governor Riad Salameh’s term looming, the caretaker government continues to consider options for successor
• Caretaker Prime Minister Prime Minister Najib Mikati said that he will not extend Salameh’s term as governor even if no successor can be nominated

BEIRUT: Protesters smashed and burned an ATM at a bank in Beirut on Tuesday as depositors again took to the streets to protest against Lebanese banking restrictions that have denied them full access to their foreign currency savings since 2019.
At the same time bank customers have been unable to withdraw their savings, the value of the country’s own currency has collapsed amid an ongoing economic crisis and political paralysis that has pushed many people into poverty.
Dozens of members of the Depositors’ Cry group gathered near the Lebanese Parliament in Beirut, blocked the road and targeted a nearby branch of Bank Audi, smashing and burning its ATM. Some also tried to storm the bank, throwing stones and firecrackers at the entrance. Riot police intervened and some protesters were injured.
The demonstrators, who included lawyers, retired military personnel, union activists and teachers, carried banners demanding the right to access their savings, and calling on authorities to take action to recover the billions of dollars believed to have been smuggled abroad, and hold accountable those responsible for doing so.
The protest on Tuesday was the latest in a long line of similar demonstrations, the most recent of which was in February when protesters burned the facades of four banks in Beirut. The Association of Banks in Lebanon had hinted that bank workers would resume a strike should branches or ATMs be attacked.
Some protesters headed toward association’s headquarters in Beirut, others gathered near the residence of caretaker Prime Minister Najib Mikati.
Depositors who are do manage to withdraw some of their dollar deposits are paid in the national currency at the official exchange rate of 15,000 Lebanese pounds to the dollar. However, the readily available exchange rate on the black market has reached 100,000 Lebanese pounds to the dollar.
Richard Pharaoh, the secretary of the Depositors’ Cry group, said: “We spoke to several officials but no one cared or took any action, so we had to escalate.
“Depositors face dire conditions as a result of the economic crisis and they are unable to recover. They cannot even buy medicine because the banks are withholding their money.”
Investigations by Lebanese and European judiciaries are continuing into alleged violations by some banks accused of smuggling money abroad despite an official order to freeze such transfers.
Mount Lebanon Public Prosecutor Judge Ghada Aoun, who appealed a decision to dismiss her from the Lebanese judiciary on Monday, has been investigating a number of banks for money laundering, illegal enrichment, abuse of trust, and violation of banking codes.
Aoun was due on Tuesday to question the chairman of the board of directors of Bank of Beirut, Samir Sfeir; the general manager of BLOM Bank, Saad Azhari; the chairman of the board of directors of the Societe Generale Bank, Antoun Sehnaoui; and the chairman of the board of directors of Bank Audi, Samir Hanna.
Lawyers representing some of the bankers appeared before Aoun, while others asked for more time to submit documents and written evidence.
Meanwhile, European authorities are investigating Riad Salameh, the governor of Lebanon’s central bank, Banque du Liban, his brother, Raja Salameh, and his assistant, Marianne Hoayek. The French judiciary is expected to question Riad Salameh in Paris on May 16 but a judicial source said the governor is yet to be officially notified of a date.
The Lebanese government is looking at ways to fill an imminent power vacuum at the central bank, as Salameh’s 30-year reign is due to end soon. He said in February he intends to step down when his fifth term ends this year. However, there are difficulties in appointing a new governor given that a caretaker government with limited powers remains in charge of the country, and the office of president has been empty since Michel Aoun’s term ended in October last year.
Should one of Salameh’s deputies take charge, the government risks angering Lebanese Christians because the position is traditionally reserved for a Maronite and Salameh’s first deputy is Shiite and his second deputy Sunni.
Mikati said on Monday that he would not agree to extend Salameh’s term as governor even if no successor can be nominated.
“The law protects the central bank in the event that the governor’s position becomes vacant, as the first deputy assumes his powers directly without the need for any decision from the government and no other (central bank) employee can assume this task in place of the first deputy,” he said.