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Lebanon’s detained former central bank governor faces new corruption charge

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

Riad Salameh, 74, was charged by the first examining magistrate of Mount Lebanon Nicola Mansour over an apartment that was rented in France to be a substitute office for the central bank if needed, the four official said on condition of anonymity because they were not authorized to speak to the media.

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

After questioning Salameh, Nicola issued an arrest warrant for him. Salameh had been held by Lebanese authorities since early September.

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

In early September, Lebanon charged Salameh with the embezzlement of $42 million a day after he was detained.

Salameh ended his 30-year term as central bank governor a year ago under a cloud, with several European countries probing allegations of financial crimes. Many in Lebanon blame him for the crippling financial crisis that has gripped the country since late 2019.

He was appointed in 1993 and initially celebrated for his role in steering Lebanon’s economic recovery after a 15-year civil war, and for keeping the economy on an even keel during long spells of political gridlock and turmoil.

The embattled Salameh is also in the midst of several other cases against him, both locally and internationally.

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

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

Meanwhile, the U.S., the U.K, and Canada have sanctioned Salameh and his close associates, and France issued an international arrest warrant for him, though Lebanon does not hand over its own citizens for extradition.

Bassem Mroue, The Associated Press

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