Former Lebanese central bank chief detained in corruption probe

Special 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)
Special Former Lebanese central bank chief detained in corruption probe
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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

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.


Netanyahu says Israel army destroyed ‘large part’ of Hezbollah arsenal

Netanyahu says Israel army destroyed ‘large part’ of Hezbollah arsenal
Updated 21 sec ago
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Netanyahu says Israel army destroyed ‘large part’ of Hezbollah arsenal

Netanyahu says Israel army destroyed ‘large part’ of Hezbollah arsenal
“We destroyed a large part of the array of missiles and rockets that Hezbollah built over the years,” said Netanyahu

JERUSALEM: Prime Minister Benjamin Netanyahu on Saturday said the Israeli military had succeeded in destroying much of Hezbollah’s arsenal and altered the course of the war against the Iran-backed group.
“We destroyed a large part of the array of missiles and rockets that Hezbollah built over the years,” said Netanyahu in a televised address, adding: “We have changed the course of the war and the balance of the war.”
He also said ‘shame’ on Macron for urging halt to arms supply to Israel.

France to host Lebanon aid conference, Macron says

France to host Lebanon aid conference, Macron says
Updated 11 min 31 sec ago
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France to host Lebanon aid conference, Macron says

France to host Lebanon aid conference, Macron says
  • “We will hold in the next few weeks a conference to provide humanitarian aid,” Macron said

PARIS: France will host an international conference this month to help drum up humanitarian aid for Lebanon and strengthen security in the southern part of the country, French President Emmanuel Macron said on Saturday.
“We will hold in the next few weeks a conference to provide humanitarian aid, support the international community and support the Lebanese armed forces boost security, especially in southern Lebanon,” Macron said after a meeting of French speaking countries in Paris.
Israel has begun an intense bombing campaign in Lebanon and sent troops across the border in recent weeks after nearly a year of exchanging fire with Iran-backed militant group Hezbollah.
Fighting had previously been mostly limited to the Israel-Lebanon border area, taking place in parallel to Israel’s year-old war in Gaza against Palestinian group Hamas.


Lebanon crisis sparks risk of new wave of Syrian refugees into Turkiye

Lebanon crisis sparks risk of new wave of Syrian refugees into Turkiye
Updated 30 min 46 sec ago
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Lebanon crisis sparks risk of new wave of Syrian refugees into Turkiye

Lebanon crisis sparks risk of new wave of Syrian refugees into Turkiye
  • There is ‘great uncertainty’ about Turkiye’s options regarding migration management from Lebanon, analyst says 

ANKARA: A surge in the number of Syrian refugees fleeing violence in Lebanon and attempting to reach Turkish-controlled areas in northern Syria is raising concerns over how Turkiye will manage a new influx of refugees. 

Lebanon, which hosts more than 1.5 million Syrian and Palestinian refugees, is witnessing an exodus as security conditions worsen as a result of Israel’s bombing campaign.

Turkiye, which currently shelters around 3.1 million registered Syrian refugees, now faces pressure to accommodate more.

Ankara is also helping to evacuate foreign nationals from Lebanon via Turkiye, following requests from around 20 countries.

On Thursday, Deniz Yucel, spokesperson for the main opposition Republican Peoples’ Party (CHP), submitted a parliamentary question concerning the potential impact of the Israel-Lebanon war on Turkiye.

“There is growing concern that the ongoing conflict in our southeastern border could trigger a massive wave of migration,” he said in his address to Interior Minister Ali Yerlikaya. “(This) would not only increase our population but also lead to a rise in unemployment, rent, and property prices while disrupting social order and demographic balance in a country already turned into the world’s refugee camp. The minister of interior must urgently inform the public about the possibility of a new migration wave.”  

Turkiye, Yucel continued, “is not anyone’s refugee camp. We will never allow the Turkish people to become alienated in their homeland. We will close the borders and save the country.”

Metin Corabatir, president of the Research Center on Asylum and Migration in Ankara, said that there is great uncertainty about the options ahead for Turkiye in terms of migration management from Lebanon.  

“A significant number of Lebanese and Syrian refugees are evacuating the country or are crossing into Syria,” he told Arab News. “If Lebanon becomes a battleground, there may be pressure on Turkiye.”

The Turkish government “is pursuing a policy to fight against irregular migration. If there is a new wave of migration, I don’t think Turkiye will opt for an open-border policy, because it will greatly affect domestic politics,” he added.

Some 77 percent of Turks favor closing borders to refugees — significantly more than the global average of 44 percent — according to the results of a recent survey by IPSOS and the UN refugee agency, UNHCR. 

According to Corabatir, if there is a large wave of migration, the Turkish government will be expected to cooperate with the international community to develop formulas based on international humanitarian law rather than accepting offers to once again transform Turkiye into a buffer against migration waves. 

“The absorption capacity of northern Syria has reached its full capacity for hosting more refugee flow. In that case, these people can transit through Syrian soil in a controlled manner and pass to other countries via Turkiye,” he said.

Turkiye, which has a 911 km-long border with Syria, became the country hosting the most refugees in the world in 2011 when the Syrian conflict began.

However, experts do not anticipate a similar influx through the border at present because, since then, Turkiye has imposed tight controls by building a security wall.

“Considering many European countries have already closed their doors to the migration flow, Turkiye will not be expected to operate an open-door policy like it did in the past. But it will cooperate in the conditional and controlled evacuation of refugees in case a large-scale humanitarian crisis erupts,” Corabatir said. 

According to Dr. Oytun Orhan, coordinator of Levant studies at ORSAM, an Ankara-based think tank, as tensions escalate in Lebanon and Syria a new wave of migration is likely to be triggered from the latter, where airstrikes targeting Hezbollah and Iran-backed militias are increasing.  

“This could further destabilize Syria, potentially prompting a fresh migration wave from the south to the north of the country. Turkiye’s primary advantage is managing the influx in designated safe zones,” he told Arab News. 

However, these areas are already overfilled. In Idlib alone, 3.5 million people reside, while other regions house another 1.5 million, most of whom have been internally displaced within Syria.

Dr. Orhan believes Syria’s rising instability, chaotic conditions, and the risk of a new migration wave may force Turkiye to strengthen its border defenses.  

“Expanding the safe zones is one potential outcome, but that remains a last resort,” he said. 

“A military operation to close off the remaining unsecured areas of the safe zone is the worst-case scenario, particularly if the conflict in Gaza or Lebanon spills into Syria. Should this happen, Turkiye is expected to take preventive measures to address any potential border-security risks.

It remains to be seen how this new flow of refugees will affect the slow but ongoing normalization process between Ankara and Damascus.”

In July, Turkish President Recep Tayyip Erdogan said he might invite Syrian leader Bashar Assad to Turkiye “at any moment” to restore relations to the level of the past.

That statement came after Assad said Damascus was open to “all initiatives” to restore Turkish-Syrian ties “as long as they are based on respecting the sovereignty of the Syrian state over all its territory and fighting all forms of terrorism.” 

For Dr. Orhan, there are two options ahead. “Initially, the spread of conflict into Syria might accelerate negotiations, as Damascus faces increased pressure and Iran’s influence in the region weakens,” he said, adding that Russia would likely back such peace efforts in case of further clashes and a migration surge.

“However, if Ankara is obliged to conduct any cross-border military action to secure its borders, it could disrupt normalization talks until tensions subside,” he added.


Ireland calls Israeli demand to move UN troops ‘outrageous’

Ireland calls Israeli demand to move UN troops ‘outrageous’
Updated 05 October 2024
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Ireland calls Israeli demand to move UN troops ‘outrageous’

Ireland calls Israeli demand to move UN troops ‘outrageous’
  • “It is outrageous that the Israeli Defense Forces have threatened this peacekeeping force,” President Michael Higgins said
  • “Indeed, Israel is demanding that the entire UNIFIL operating under UN mandates walk away“

DUBLIN: The president of Ireland on Saturday sharply criticized Israel’s demand that UN peacekeepers leave their positions in southern Lebanon.
“It is outrageous that the Israeli Defense Forces have threatened this peacekeeping force and sought to have them evacuate the villages they are defending,” President Michael Higgins said in a statement.
“Indeed, Israel is demanding that the entire UNIFIL (United Nations Interim Force in Lebanon) operating under UN mandates walk away.”
Ireland accounts for 347 of the 10,000 soldiers serving in the UNIFIL forces, which are charged with maintaining peace in the south of Lebanon.
Earlier Saturday, UNIFIL said it had rejected Israeli demands that it “relocate” some positions ahead of Israeli ground operations against Lebanese militant group Hezbollah.
Higgins called the demand “an insult to the most important global institution.”
Fighting between Hezbollah and Israel has intensified since the start of ground incursions by Israeli troops in southern Lebanon earlier this week.
Some 1,110 people have died in Lebanon and hundreds of thousands have fled their homes because of the fighting.


Hezbollah says targets north Israel ‘military industries’ firm

Hezbollah says targets north Israel ‘military industries’ firm
Updated 05 October 2024
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Hezbollah says targets north Israel ‘military industries’ firm

Hezbollah says targets north Israel ‘military industries’ firm
  • The group said it launched “a rocket salvo” toward a “military industries company” east of Acre

BEIRUT: Hezbollah said it launched rockets at a defense company in northern Israel Saturday, the latest attacks after Israel intensified its bombing campaign last week, nearly a year into cross-border clashes with the group.
The Iran-backed group said in a statement that it launched “a rocket salvo” toward a “military industries company” east of Acre.