Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

As corruption probes converge, support for Lebanon cbank governor frays - sources

As corruption probes converge, support for Lebanon cbank governor frays - sources

Top-level political backing for Lebanon's central bank governor Riad Salameh is starting to fray, political sources say, as the veteran financier once hailed as a banking wizard faces several corruption investigations in the waning months of his tenure.

The apparent cooling of support raises questions over the impact the investigations could have on the wider political class, given the widely-held view that members of the ruling elite fear his downfall would have repercussions for them.

Salameh, 72, has been summoned for a hearing on Wednesday as part of Lebanon's probe into whether he and his brother embezzled hundreds of millions of dollars in public funds, a claim at least five European countries are also investigating.

He denies the charges and says they are part of an attempt to scapegoat him for Lebanon's historic financial crisis, which has destroyed the savings of generations since 2019.

Many blame Salameh along with ruling politicians, whose interests he long served as steward of the financial system.

Viewing Salameh as a burden, some of his long-time allies are now distancing themselves from him, say political sources, who declined to be identified due to the sensitivity of the subject.

Salameh, governor for three decades, said in February he would not seek a new term once his current one ends in July.

His departure will mark a milestone in the financial meltdown which resulted from decades of profligate spending, corruption and unsustainable financial policies by leaders who have left the crisis to fester since 2019.

Once a regular at banking summits and chic restaurants in Europe, he now restricts his movements and is rarely seen in public, except for semi-regular television interviews defending his record.

Concrete t-walls surround the central bank building in Beirut, covered in anti-Salameh graffiti. He is living in a secured apartment inside and rarely leaves, according to a source close to him who has visited him.

To attend a meeting at the government's headquarters, he was sent an armoured car, brought into the premises through a secret door and left quickly before news of his presence spread, a source with knowledge of the meeting said.

Another source with knowledge of Salameh's interactions with the political elite said he had been "very tense recently". A close friend said he was seriously considering leaving Lebanon once his term ends.

"He'll either go to the Gulf or Europe," the close friend said, adding that Salameh was confident European investigators would eventually clear him of wrongdoing.

Salameh did not respond to questions from Reuters on the sources' accounts of his isolation.


'HE IS THE DOMINO'


European officials have not yet questioned the Salamehs directly and have not filed formal charges. Raja has also denied any wrongdoing.

They will be allowed to attend Wednesday's hearing in Lebanon, where a judge charged the Salameh brothers with financial crimes last month.

But critics have long doubted whether ruling politicians, who exercise major sway over the judiciary, would allow him to be prosecuted in Lebanon: Salameh has been the linchpin of a financial system from which they benefited for decades.

"He is the domino. If he falls, everything falls," said the source with knowledge of Salameh's political ties.

"He knows most of their financial secrets," wrote Ibrahim Al-Amin, editor of al-Akhbar newspaper, which has long been critical of Lebanon's financial policies.

Salameh has worked hand-in-glove since 1993 with powerful figures including the Shi'ite Parliament Speaker Nabih Berri and a series of Sunni prime ministers, among them Saad al-Hariri.

A long-term occupant of a post reserved for a Maronite Christian in Lebanon's sectarian power-sharing system, he has also enjoyed the backing of Christian religious authorities.

But there are signs his political backing is waning.

Prime Minister Najib Mikati, a billionaire businessman, told local broadcaster Al-Jadeed he would not propose an extension of Salameh's term. "(Salameh) doesn't want to (continue), and for us I believe it is difficult," he said.

A political source said Mikati would no longer back him. "It's over for Riad Salameh," the source said. Mikati's office declined to comment and referred Reuters to the Al-Jadeed interview.

A source from the Amal Movement, headed by Berri and seen as one of Salameh's main traditional backers, said if Salameh is involved in corruption, he should be tried fairly.

"We never cover anyone," the source added.

Lebanon's powerful Hezbollah has said it is against a term extension.

"The politicians for whom he did so much now see him as a burden, and they are distancing themselves from him little by little," a second political source said.

In January, the U.S. Treasury sanctioned a Lebanese money exchanger over alleged ties to Hezbollah, saying he had advocated for his exchange firm to the central bank governor.

Two bankers said the reference to Salameh's post was seen as a message from Washington that he was "not untouchable."

Salameh's enforcement of U.S. laws targeting Hezbollah finances had helped win supporters in the West. The U.S. Treasury declined to comment.

"It would be wise for him not to stay on" when his term ends, a Western diplomat said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
×