In Beirut, judicial proceedings have commenced against Riad Salameh, the former governor of Lebanon's central bank, Banque du Liban. The interrogation, which began on Monday, marks the first hearing since Salameh's detention last week on charges of alleged financial misconduct.
Salameh, who led the central bank for three decades until one year and two months ago, faces accusations of embezzlement, forgery, and illicit enrichment. The presiding judge is tasked with determining whether to extend Salameh's detention or release him pending further investigation.
This case could potentially set a precedent in Lebanon's political landscape, where accountability for high-ranking officials has been notably scarce. Critics have long argued that the system has shielded the elite from legal consequences.
The charges against Salameh come amidst a backdrop of severe economic turmoil in Lebanon. Since 2019, the country has grappled with one of the worst financial crises globally since the mid-19th century. The Lebanese pound has lost over 90% of its value, and the nation's GDP contracted by 58% between 2019 and 2021. The World Bank has described the situation as a "deliberate depression."
Lebanon's economic woes have had far-reaching consequences:
- The poverty rate reached 74% in 2021
- Banking sector assets shrunk by 50% between 2019 and 2021
- Severe electricity shortages have left many areas with only a few hours of power daily
- The country defaulted on its sovereign debt for the first time in March 2020
Despite once being hailed as a financial wizard, Salameh's reputation has been significantly tarnished by corruption allegations both domestically and internationally. The collapse of Lebanon's financial system in 2019 further eroded public trust in his leadership.
According to Salameh's media office, he has cooperated with more than 20 criminal probes in Beirut and Mount Lebanon in the past. They stated that he continues to cooperate with the current investigation and will refrain from public comments on the case, in compliance with legal requirements.
It's worth noting that Lebanon's challenges extend beyond its economic crisis. The country has been without a president since October 2022, highlighting the political instability that has exacerbated its financial woes. Additionally, Lebanon hosts the highest number of refugees per capita globally, further straining its resources.
As the legal proceedings against Salameh unfold, many observers are watching closely to see if this case will indeed mark a turning point in Lebanon's approach to accountability among its political and financial elite.
"He had cooperated in the past with more than 20 criminal probes in Beirut and Mount Lebanon, and was cooperating with the investigation after his detention."