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Ex-Head of Lebanon Central Bank, Under Investigation in Corruption Cases, Is Detained

Ex-Head of Lebanon Central Bank, Under Investigation in Corruption Cases, Is Detained
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Riad Salameh, once seen as an international financial wizard, is the subject of multiple inquiries and has attracted blame for the country’s economic crisis.

Riad Salameh wears a blue suit while standing at a desk.
Riad Salameh at Lebanon’s central bank in 2023.Credit…Mohamed Azakir/Reuters

The longtime former governor of Lebanon’s central bank was detained on Tuesday after being questioned by Lebanese authorities, said the country’s general prosecutor, Judge Jamal Hajjar.

The former banker, Riad Salameh, has been under investigation in a number of corruption cases in Lebanon and abroad. Mr. Salameh thought he had been summoned by investigators on Tuesday as a witness rather than as a suspect, according to one of his lawyers, Hafez Zakhour. The arrest was a surprise, the lawyer said.

“My client was supposed to be a witness,” he said. “I don’t know why he was detained.” The lawyer who represents Mr. Salameh in the case for which he was questioned on Tuesday could not be reached for comment.

Lebanon’s minister of justice, Henry Khoury, said that Mr. Salameh would be held for four days before being questioned again. He said Mr. Salameh could be returned to jail after the second interrogation, depending on the outcome of that session.

Mr. Salameh was once hailed for helming Lebanon’s economic comeback after a devastating civil war, but has come under intense scrutiny from prosecutors in Lebanon and Europe in recent years as the Lebanese economy crumbled. Amid multiple investigations into his tenure at the bank, he resigned last year after 30 years as its head.

Mr. Salameh had never been jailed before Tuesday. Mr. Khoury said he was questioned on Tuesday in an investigation involving Optimum, a Lebanese brokerage firm.

Once seen as something of an international financial wizard, Mr. Salameh attracted increasing blame from Lebanese who accused him of leading a lavish lifestyle while the country’s currency crashed and inflation ran into the triple digits. An extravagant wedding in France he hosted for his son drew particular wrath.

Many people saw their life savings evaporate during the country’s financial crisis, which left those with dollars in the bank unable to withdraw their own money. Much of the middle class has been plunged into poverty.

Many economists and analysts said Mr. Salameh’s central bank policies contributed to the country’s financial ruin, along with the corruption and mismanagement of Lebanon’s political leaders. Prosecutors in France, Germany and Switzerland are investigating Mr. Salameh and his close associates over allegations of financial crimes, including the laundering of at least $330 million.

The United States, Britain and Canada froze his assets last year, accusing him of abusing his position to enrich himself, his family and friends by funneling hundreds of millions of dollars into high-end European real estate via a series of shell companies.

Now, he is in a Beirut jail.

Mr. Salameh did not have his lawyer with him during the questioning on Tuesday, according to Mr. Zakhour.

In the past, Mr. Salameh has denied any wrongdoing, saying that he had worked to stabilize the currency and deter corruption. He has said that his wealth came from inheritances, his previous work as a banker at Merrill Lynch and investments, and that he is being scapegoated for the country’s financial crisis.

Vivian Yee is a Times reporter covering North Africa and the broader Middle East. She is based in Cairo. More about Vivian Yee

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