The whereabouts of Lebanon’s embattled central bank governor, Riad Salameh, were unclear on Wednesday, one day after a controversial failed raid on his homes and office by one of the country’s security agencies, with local newspapers warning of a “civil war” should he be arrested.
There was no answer when The National rang the doorbell at his main residence, a large modern beige house surrounded by thick hedges and palm trees in the upmarket small residential town of Rabieh, a half-hour drive north-east of Beirut.
A policeman from the Internal Security Forces acknowledged the home belonged to Mr Salameh before entering the premises. Voices could be heard from inside its courtyard, which was blocked off by thick black curtains. A lone hand appeared to be fastening them tighter to the gate in an attempt to avoid being seen.
This was reportedly the scene of a tense stand-off on Tuesday between state security and the ISF, a reflection of deep divisions in the crisis-hit country over the fate its central bank governor amid a severe economic meltdown.
State security raided Mr Salameh’s office in Beirut, his home in Rabieh and another house in the coastal town of Safra, to force him to be questioned by judge Ghada Aoun after he failed to respond to her summons three times. But Mr Salameh was nowhere to be found.
The state is divided between those who are with him and those who are against him
Tamer Shreif,
poet
Mr Salameh, 71, has come under intense scrutiny since the country’s financial collapse in 2019 which pushed over three-quarters of the country into poverty. Two judges are investigating the veteran millionaire governor in Lebanon and at least five European countries have launched probes in the past 18 months over suspicions of money laundering.
Yet Mr Salameh has strong backers inside Lebanon, including Prime Minister Najib Mikati and veteran Parliament speaker Nabih Berri. The central bank governor is part of a team negotiating a bail-out package with the IMF.
Mr Salameh's political supporters accused Ms Aoun of working under direct orders from President Michel Aoun, a critic of the governor. The president and his political party repeatedly rejected such claims in the past two days.
Quoting anonymous political sources, daily newspaper Al Joumhouria wrote on Wednesday that Mr Salameh’s “provocative” arrest could “lead to a civil war”.
In an apparent sign of Mr Salameh’s influence, an employee of Rabieh’s municipality continued to drive away when hailed by The National to confirm his house’s location. “I didn’t want them to know that I spoke to you,” he said, once he had stopped his car about 50 metres from the central bank governor’s house.
Media reports alleged that the ISF had barred State Security officers from entering the premises during their attempted raid. The ISF rejected the reports and said in a statement that its officers had been stationed “some time ago” in front of the central bank governor’s house for his security.
‘No-one knows where he is’
The controversy worsened on Wednesday, when Ms Aoun, the judge, charged the director general of the ISF with “obstructing the implementation of a judicial warrant and breaching the duties of his job,” a judicial source told Lebanese daily newspaper L’Orient Today.
Meanwhile, Mr Salameh reportedly attended a central council meeting at the Banque du Liban on the same day. “He continues life as if nothing happened,” said an informed source who declined to be identified.
Reuters news agency also reported that Mr Salameh attended meetings at the central bank on Wednesday.
The National tried to contact the director general of the Economy Ministry. He is required by law to attend central council meetings, which set monetary and credit policies of the central bank. But the director general, Mohammad Abi Haidar, said he could not confirm or deny claims that Mr Salameh attended a central council meeting because such matters are confidential. The anonymous source disputed this, arguing that only the resolutions of the central council are secret.
At a stakeout by the imposing bank building, hoping for the chance to glimpse Mr Salameh coming in or out, The National consulted the court of public opinion to while away the time. It was a hung jury.
Tamer Shreif, a poet, said that Mr Salameh “stole people’s money,” echoing oft-heard sentiment during anti-government protests that spread through the country in late 2019, at the start of the crisis.
“No-one knows where [Mr Salameh] is because the state is divided between those who are with him and those who are against him. Some are protecting him and some are out to get him,” Mr Shreif said.
Sitting in front of a small shop near the central bank, an elderly man disagreed. “For me, Riad Salameh is a respectable and clean man. He is a victim of the Lebanese political class,” said the man. He declined to give his name, saying he was a journalist.
The man believed that Mr Salameh had decided to stay put until Ms Aoun’s subpoena was resolved. “This arrest attempt is a manoeuvre, a game,” he said.
Mr Salameh’s press office did not answer several requests for comment. An employee of Mr Salameh’s office at the central bank’s headquarters in Beirut said she was unaware of the governor’s whereabouts when The National called. She advised to send an email. It received no response.
Company%20profile
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Teri%20Baaton%20Mein%20Aisa%20Uljha%20Jiya
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani