Lebanese judge imposes travel ban on central bank governor amid probe

Riad Salameh is being investigated by authorities in Lebanon and Europe over alleged money laundering

A Lebanese judge has issued a travel ban for Riad Salameh following a local corruption lawsuit accusing him of embezzlement and dereliction of duties in the country's ongoing financial meltdown. AP

A Lebanese judge said on Tuesday she had imposed a travel ban on central bank governor Riad Salameh, who is at the centre of investigations into alleged fraud and other misconduct launched after Lebanon was plunged into a deep financial crisis.

Mr Salameh, who said he had no knowledge of the ban and denied any wrongdoing, is being probed by the authorities in Lebanon and at least four European countries, including a Swiss inquiry over alleged money laundering.

The central bank governor, who has held the position for almost three decades, has stayed put even as the economy has been crushed by a mountain of debt, the currency has collapsed and swathes of the nation have been driven into poverty.

Judge Ghada Aoun told Reuters she had imposed the ban as part of a Lebanese investigation she was leading into Mr Salameh's conduct and said the next step would be to seek to question him.

When asked about allegations ranging from fraud to abuse of public funds being investigated in the Lebanese probe, Mr Salameh said: "These cases raised against me personally are part of the campaign to fool the public opinion."

"All the actions of the central bank are executed according to the law of money and credit and thus are not the actions of one person that takes decisions by himself," he told Reuters.

A judicial source said Ms Aoun's probe included investigating alleged fraud and complaints about the governor's actions by depositors, who have been locked out of savings held by Lebanese banks.

The investigation also included looking at the central bank's "financial engineering" operations, a range of mechanisms that amounted to offering banks lavish returns over several years to attract dollars into Lebanon, the source said.

The Lebanese judge was also probing the renting of a Paris apartment by the central bank as a back-up server room for a decade at what was considered an inflated rate, the source said.

Lebanon's economic crisis - in pictures

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  Rweida Mohammed stands next to her almost empty fridge that is warm inside due to prolonged power cuts. Elizabeth Fitt for The National

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  Hamid Khodor sits despondently in the kitchen. There is no electricity to keep food fresh in the fridge and freezer, no cooking gas for the stove and not much to eat except what the family can grow in the garden. Elizabeth Fitt for The National

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  The Khodor family is relying on homegrown vegetables. Elizabeth Fitt for The National

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  Talal Khodor with his son, Omar, in their vegetable garden. The family is relying on homegrown vegetables to feed themselves during Lebanon's economic collapse. Elizabeth Fitt for The National

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  Rweida Mohammed uses a makeshift grill to cook for the family. Since gas for the kitchen stove became so scarce in Lebanon, the family can't get hold of any. Elizabeth Fitt for The National

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  Talal Khodor's mother is frustrated by the ongoing situation. Elizabeth Fitt for The National

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  There are few options left to help Mohammed Hazim provide for his family. Elizabeth Fitt for The National

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  Shelves that usually display bread have been empty for days in the village store. Elizabeth Fitt for The National

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  Mohammed Hazim's son, Ziad, waits for his exam results. He had to study using his father's mobile phone. Elizabeth Fitt for The National

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  People queue for bread as shortages continue. Elizabeth Fitt for The National

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  The manager at Tarik Al Ridani bakery says it is one of only two producers still operational in the city and with two tonnes of flour left, it will soon run out of bread. Elizabeth Fitt for The National

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  These boys are among the lucky few that have found bread before stocks run out. Elizabeth Fitt for The National

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  Ogero, Lebanon's state-run telecoms provider, has a mast in Hrar, but connection speeds are often very slow. Elizabeth Fitt for The National