Lebanon's former central bank chief Riad Salameh moved from hospital to prison

Former Lebanese Central Bank Governor Riad Salameh was arrested on Friday at Bhannes Hospital, located north of Beirut, following his failure to appear before a judge for questioning the previous day. The arrest marks a significant step in ongoing legal proceedings against the former official, who is accused of financial misconduct related to transactions at the Banque du Liban and securities purchases linked to companies in which Bank Audi holds shares. Salameh, who served as head of the central bank for nearly three decades, from 1993 until his resignation in July 2023, was summoned for questioning on Thursday by Samaranda Nassar, a judge at the Court of Cassation. The inquiry relates to a complaint filed by Karim Souaid, the current governor of Lebanon’s central bank. Prior to the scheduled hearing, Salameh’s lawyer, Wassim Ghawi, submitted a medical excuse explaining his absence. However, prosecutors stated they could not confirm that Salameh had been hospitalized, while his personal physician reportedly failed to verify his presence at the hospital. Following a police search of Salameh’s three known residences, Judge Ahmad Rami Al Hajj determined that Salameh had refused to comply with judicial summons and issued a search and arrest warrant. Salameh was found at Bhannes Hospital and detained. Legal experts and advocacy groups have expressed concern over the delayed justice system, with Fouad Debs, a lawyer representing the Depositors Association, stating that Salameh has “evasively avoided justice” and that the financial crisis, largely attributed to the actions of elites like Salameh, continues to impact citizens. The arrest comes amid multiple investigations both within Lebanon and internationally. One of the most prominent cases involves Forry Associates, a company controlled by Salameh’s brother, Raja. Lebanese and European prosecutors allege that hundreds of millions of dollars were siphoned from the central bank through commissions paid to Forry. Additionally, there are ongoing proceedings regarding French real estate, particularly the central bank’s rental of premises on the Champs-Elysees. In the so-called Optimum Invest case, an arrest warrant was issued against Salameh in October 2024 over allegations of money laundering, embezzlement, and fraud spanning 2015 to 2018. He was indicted in July 2025 and released on $20 million bail. Beyond these charges, Salameh’s family is implicated in a vast real estate empire across Europe, featuring luxury homes in major cities and a portfolio of industrial and commercial properties generating considerable rental income. Authorities have seized assets valued at approximately $92 million. These holdings highlight the broader pattern of wealth accumulation among Lebanese elites, often criticized for contributing to systemic corruption and financial instability. Salameh, once considered one of the region’s foremost central bankers, saw his reputation erode significantly after Lebanon’s financial collapse in 2019. Critics argue that his leadership played a role in shaping policies that exacerbated the crisis, which is widely viewed as the result of long-standing corruption and poor governance. Despite repeated denials of wrongdoing, Salameh has faced mounting public scrutiny and loss of trust. Legal observers suggest that while the arrest represents progress, the effectiveness of the Lebanese judiciary remains questionable. Debs noted that although the arrest is a positive sign, it may serve more as a symbolic gesture than a meaningful step toward true accountability. As the situation unfolds, the focus will shift to whether Salameh remains in custody and proceeds to face trial, marking a critical moment in the pursuit of justice for those affected by the country’s economic turmoil.