Lebanon’s central bank governor Riad Salameh should be arrested and face justice over his alleged embezzlement of state funds, the leader of one of the country’s most prominent political parties has said.
Gebran Bassil, leader of the Free Patriotic Movement (FPM) and a former foreign and energy minister, told The National it would be a disaster for the country if Mr Salameh were not held accountable.
Mr Salameh, who says he will not seek to extend his three-decade tenure as Banque du Liban (BDL) governor when his term expires next month, is the subject of judicial inquiries at home and abroad.
France and Germany last month issued arrest warrants for Mr Salameh as part of an international investigation into the alleged embezzlement of $330 million from the BDL, in a scheme suspected of being concocted with his brother Raja. The brothers reject the accusations.
Lebanon does not extradite its citizens but the BDL governor has been banned from leaving the country and questioned by the Lebanese judiciary since the arrest warrants were issued. Two red notices from Interpol have also been issued against him, the first after he failed to attend a hearing in Paris.
Mr Salameh has faced calls to resign but the caretaker cabinet has declined to make a decision and instead has left it to the judiciary – which is heavily politicised in Lebanon. Justice can be brittle in Lebanon, as indicated by the lack of any high-profile figures being held responsible for the fatal Beirut port blast in 2020.
“It’s very simple, he should resign,” said Mr Bassil. "Or much simpler, he should be arrested. It’s not about his resignation any more – he should be arrested, put in jail."
He said the bank governor should be held accountable, otherwise there is “no justice in Lebanon”.
He added the country would "always be in chaos" and would not be attractive to would-be investors. How can you can come to a country, make investments … and [neither] the government nor the judiciary is taking any measures to do the necessary and to restore trust in our monetary institution and system?
“How can people have trust in your currency if you have such a situation?"
Mr Bassil said by not allowing Mr Salameh to go to France to face questioning, establishment figures he would not identify were “protecting themselves”.
“They are afraid he will talk,” he added.
The US imposed sanctions on the FPM leader in 2020 for alleged corruption, accusations he rejects. He was one of the main targets of protesters' ire in 2019 when people took to the streets to demonstrate against the country’s ruling classes.
An economic crisis that first became apparent in 2019 has been blamed on decades of mismanagement and alleged corruption by the establishment. As the long-time ruler of the central bank, 72-year-old Mr Salameh has been among those deemed most responsible.
The local currency has plummeted in value, inflation is soaring while prices are failing to keep up and much of the country is in poverty.
