The detained former governor of Lebanon’s central bank faces new corruption charges

BEIRUT (AP) — Lebanon has charged the former governor of the country’s central bank with illicit enrichment and issued an arrest warrant for a detained banker, the second in less than two months, court officials said Thursday.

Riad Salameh, 74, was charged by Mount Lebanon’s first investigating judge Nicola Mansour in connection with an apartment rented in France to act as a substitute office for the central bank when needed, four officials said on condition of anonymity because they were not authorized to do so talk to the media.

Officials said Salameh rented an apartment from his “former partner” Anna Kosakova for about $500,000 a year. They added that the apartment was small and almost empty except for a few computers.

After questioning Salameh, Nicola issued a warrant for his arrest. Salameh had been detained by Lebanese authorities since early September.

For years, Salameh has denied allegations of corruption, embezzlement and illicit enrichment. He insists his wealth comes from inherited real estate, investments and his previous job as an investment banker at Merrill Lynch.

At the beginning of September Lebanon attacked Salameh with embezzlement of $42 million a day after his arrest.

Salameh ended his 30-year term as the president of the central bank a year ago under a cloud, with several European countries examining allegations of financial crime. Many in Lebanon blame it for the devastating financial crisis that has plagued the country since late 2019.

He was appointed in 1993 and was initially praised for his role in steering Lebanon’s economic recovery after a 15-year civil war and for keeping the economy stable during long periods of stalemate and political turmoil.

The struggling Salameh also has several other cases pending against him, both locally and internationally.

France, Germany and Luxembourg they are also investigating Salameh and his close associates for alleged illicit enrichment and laundering of $330 million.

Salameh criticized the European investigation and said it was part of a media and political campaign to make him a scapegoat.

Meanwhile, the United States, Britain and Canada have imposed sanctions on Salameh and his close associates, and France has issued an international arrest warrant for him, although Lebanon does not extradite its own citizens.