• Lebanese security personnel raid the Banque du Liban, the country's central bank, in Beirut. EPA
    Lebanese security personnel raid the Banque du Liban, the country's central bank, in Beirut. EPA
  • They were searching for Riad Salameh, governor of the Banque du Liban. Reuters
    They were searching for Riad Salameh, governor of the Banque du Liban. Reuters
  • Lebanese security personnel stand guard at the entrance of the central bank during the raid. AP
    Lebanese security personnel stand guard at the entrance of the central bank during the raid. AP
  • Judge Ghada Aoun is surrounded by security personnel as she leaves the central bank. AP
    Judge Ghada Aoun is surrounded by security personnel as she leaves the central bank. AP
  • Lebanese Judge Ghada Aoun (C), walks as she leaves the Lebanese Central Bank after members of the state security patrol raid the Banque du Liban in search of Riad Salameh central bank Governor, in Beirut, Lebanon, 19 July 2022. Lebanon opened a probe into Salameh's wealth last year after the office of Switzerland's top prosecutor requested assistance in an investigation into more than 300 million USD which he allegedly embezzled out of the central bank with the help of his brother. EPA / WAEL HAMZEH
    Lebanese Judge Ghada Aoun (C), walks as she leaves the Lebanese Central Bank after members of the state security patrol raid the Banque du Liban in search of Riad Salameh central bank Governor, in Beirut, Lebanon, 19 July 2022. Lebanon opened a probe into Salameh's wealth last year after the office of Switzerland's top prosecutor requested assistance in an investigation into more than 300 million USD which he allegedly embezzled out of the central bank with the help of his brother. EPA / WAEL HAMZEH
  • European countries are also investigating Mr Salameh. It is alleged he embezzled more than USD$300 million out of the central bank with the help of his brother Raja. EPA
    European countries are also investigating Mr Salameh. It is alleged he embezzled more than USD$300 million out of the central bank with the help of his brother Raja. EPA
  • A member of Lebanese State Security on guard during the raid at the Banque du Liban. EPA
    A member of Lebanese State Security on guard during the raid at the Banque du Liban. EPA
  • Officials said they did not find Salameh and were unable to look for him in the building’s offices and storage rooms. EPA
    Officials said they did not find Salameh and were unable to look for him in the building’s offices and storage rooms. EPA
  • The allegations against Mr Salameh come as Lebanon reels under economic crises that have left most of the population in poverty. EPA
    The allegations against Mr Salameh come as Lebanon reels under economic crises that have left most of the population in poverty. EPA
  • Lebanese state security personnel on patrol during the raid on the Banque du Liban. EPA
    Lebanese state security personnel on patrol during the raid on the Banque du Liban. EPA

Lebanese security forces raid central bank in search of governor Riad Salameh


Jamie Prentis
  • English
  • Arabic

A Lebanese judge raided the central bank in Beirut on Tuesday in search of its governor Riad Salameh, after state security forces failed to find him at one of his houses earlier in the day.

Judge Ghada Aoun, a state prosecutor, has charged Mr Salameh and his brother Raja with illicit enrichment.

But the 71-year-old governor could not be found, and Ms Aoun said she was unable to search for Mr Salameh in Banque du Liban's offices.

“We immediately received a judicial order [to leave],” she said. Central bank employees then began a three-day strike following the raid.

“The dignity of the institution and its employees comes first. We refuse to be treated with militia methods and we announce the strike”, said Abbas Awada, the head of the central bank’s employee union.

“We are not defending Riad Salameh but the institution, and we do not accept these methods.”

A separate statement by the bank's employees called on authorities to “intervene to put an end to these inappropriate behaviours by Judge Ghada Aoun, which deviate from all legal principles … so that we do not have to regret announcing an open strike.”

Riad Salameh has held the role of Lebanon's central bank governor for three decades. Reuters
Riad Salameh has held the role of Lebanon's central bank governor for three decades. Reuters

Prime Minister-designate Najib Mikati said the raid was “not the appropriate solution” to Mr Salameh's case.

“What is required is to solve this case with a prior political agreement on a central bank governor and then take the appropriate legal course after,” he said.

Mr Salameh is at the centre of two corruption investigations in Lebanon, but has failed to appear at several hearings.

A previous raid last month by Ms Aoun and security forces on Mr Salameh’s property in Rabieh, in northern Beirut, failed to locate him. Banque du Liban staff went on a one-day strike a week later to protest against “the unjust situation against the central bank and its employees, and to avoid later escalation”.

Mr Salameh is one of Lebanon’s most controversial figures and has held the governor role for three decades. An economic collapse that began in 2019 has plunged much of the population into poverty and seen the local currency lose more than 90 per cent of its value.

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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.”

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Updated: July 19, 2022, 3:03 PM