Arrest Warrant Issued for Former Lebanese Central Bank Governor Riad Salameh Following Interrogation

📍 Location: Beirut, Lebanon 🇱🇧

Beirut’s First Investigative Judge, Bilal Halawi, has issued an arrest warrant against Riad Salameh, the former Governor of the Central Bank of Lebanon, following his interrogation on charges of embezzlement. The warrant comes after Salameh was questioned regarding a sum of $42 million, which he claimed was obtained from consultations rather than depositors’ funds.

Key Developments:

Issuance of Arrest Warrant:

• Judge Bilal Halawi issued an arrest warrant against Salameh after his interrogation, which took place days after his initial detention. This marks a significant development as it officially transitions Salameh’s status from “precautionary detention” to judicial arrest.

Salameh’s Interrogation and Response:

• During the interrogation, Judge Halawi questioned Salameh about $42 million. Salameh’s defense was that these funds were obtained through consultations and were not linked to depositors’ money. Another session is scheduled for next Thursday to continue the interrogation and hear from additional witnesses.

Security Measures:

• Tight security was observed around the Palace of Justice during Salameh’s arrival. A convoy with camouflaged vehicles initially misled photographers and crowds; however, Salameh arrived in a different convoy, entering through a gate designated for prisoners. Security forces had set up a cordon in anticipation of protests by bank depositors demanding the return of their deposits.

Salameh’s Legal Status:

• According to sources, the issuance of the arrest warrant indicates that suspicions against Salameh have been “reinforced.” Following the interrogation, Salameh was transferred back to the General Directorate of Internal Security Forces, where he has been held since his arrest.

Controversies and Legal Proceedings:

• Salameh’s media office has stated it would not comment publicly on the case, adhering to legal protocols. Salameh has faced multiple allegations related to financial crimes, including the embezzlement of over $110 million through the Lebanese income brokerage firm Optimum Invest. Several European countries, including France and Germany, are investigating whether funds allegedly embezzled from Lebanon’s central bank were laundered in Europe. Previous arrest warrants issued by France and Germany were affected by legal technicalities, but investigations remain ongoing.

Next Legal Steps:

• According to Dr. Pascal Daher, a specialist in judicial oversight of central banks, Salameh will continue to be interrogated. Depending on the judge’s decision, Salameh could be released on bail or face an in-person arrest warrant to continue the interrogation. Salameh has options to appeal the arrest warrant before the indictment body. If released on bail, the prosecution could also appeal.

Judge Helena Iskandar’s Involvement:

• Judge Helena Iskandar, head of the Litigation Authority at the Ministry of Justice, submitted a request to attend the investigation session. However, Judge Halawi denied her participation, citing a lack of capacity to join the Financial Public Prosecution without authorization from the competent minister.

Background and Implications:

• Salameh’s Tenure and Reputation: Riad Salameh was long regarded as a leading financial figure in Lebanon until his reputation deteriorated amid allegations of corruption, particularly following the collapse of Lebanon’s financial system in 2019.
• Broader Impact on Lebanon’s Financial Crisis: The ongoing legal proceedings against Salameh are a focal point of the wider accountability crisis in Lebanon, as citizens, particularly bank depositors, demand justice and the recovery of lost savings amidst the country’s economic collapse.
• International Ramifications: Salameh’s case has drawn significant international attention, given his alleged role in financial crimes spanning multiple jurisdictions. The investigations and potential charges in Lebanon may impact ongoing inquiries in Europe and the broader international community’s efforts to address corruption and financial crimes linked to Lebanon’s economic crisis.

Republic of Lebanon Ministry of Justice Cases Authority Chairman

Case No.: 2024/129/C Investigation No.: 2024/49

Your Honor, the First Investigating Judge in Beirut


Submitted by the plaintiff, the Lebanese state, represented by the head of the Cases Authority at the Ministry of Justice and her representative, lawyer Bertha Naim

Commenting on your decision issued on 9/9/2024 requiring us to present a license from the competent minister

By submitting the current lawsuit and explaining our status as a plaintiff in light of the claim of the Bank of Lebanon. Since the head of the Cases Authority in the Ministry of Justice is the one who represents the Lebanese state before the courts, in accordance with Article 16 of...

Organization of the Ministry of Justice. Since Article 18, its fourth paragraph, of the same decree requires the head of the court to take all precautionary measures and file lawsuits to protect the rights of the state.

Since there is no explicit text that requires obtaining the permission of the competent minister to claim in the name of the Lebanese state or defend it under the penalty of invalidation of the judicial action taken by the head of the case panel to protect the interests of the Lebanese state, in the texts related to the case panel in Article 15 to Article 22 stipulated in the legislative decree. number 83/151 dated 9/16/1983 relating to the organization of the Ministry of Justice.

Since there is no invalidity without a text in support of Article 59 of the Civil Procedure Code.

Since if the legislator wanted to nullify it, he would have explicitly stipulated that. Since the principle is permissibility and prohibition is the exception.

Since the powers granted to the Cases Authority to defend the interests of the state based on Article 18 of the Law regulating the Ministry of Justice, whether it is a plaintiff or defendant, are broad powers and are not dependent on any requirement to obtain approval from the competent minister, because these powers granted under the laws cannot be limited.

Unless express legal provisions permit it, prior approval is one of the preliminary acts that must be stipulated

It is expressly required by law and does not draw any conclusion. Since the claim is in the name of the Lebanese state, although it is a public lawsuit, it is a personal lawsuit aimed at obtaining compensation and eliminating the damage and infringement caused to the state as a result of the crimes committed, while

The public prosecutor is the one who represents public law and initiates public lawsuits in the name of society to enforce the penalty against the defendant.

Since when the Public Prosecution claims, every injured party has the right to join the public lawsuit at any stage

Stages of the lawsuit to claim compensation for damages resulting from the crime.

Since it is customary for the head of the court to act, who is the legal agent of the state and not a contractual agent)

By seeking the opinion of the competent administration regarding the issue of submitting the claim.

Since this custom does not require it to become a legal obligation, rather it is derived from the text of Article 21 of the Ministry of Justice’s regulation, which stipulates that the head of the Cases Authority directly addresses the competent departments in everything related to the work of the Authority, and he has the right to request from these departments everything that would empower him. From performing the Authority’s work, including determining

Compensation that must be claimed before the courts.

Since the legislator required that the head of the body be a judge of a certain rank, due to his certain knowledge that whoever holds this position will be entrusted with the interests of the Lebanese state. Thus, it is stipulated in Article 20 of the law regulating the Ministry of Justice: “It is not permissible for the public administrations of the state to conduct reconciliations in cases pending before the courts except after the approval of the head of the case committee and the director general of the Ministry of Justice, and any reconciliation concluded in contravention of this text shall be considered invalid.” Which means that the legislator gave these two judges the right of oversight and the absolute authority to determine whether the interests of the Lebanese state are being taken into consideration. If the judge presiding over the case panel has the right to monitor whether the state’s interest has been taken into account when the dispute is settled amicably, then, a fortiori, he has the right to assess whether the state’s interest is available or not when presenting it. In the case, the investigating judge may not require us to present a license from the competent minister.

By extension, and as a matter of legal debate, not unless we accept for the sake of argument that it is necessary to obtain permission to file the lawsuit from the competent minister, we confirm that the Minister of Finance has agreed in a similar lawsuit to our letter in which we informed him.

We have joined the public rights lawsuit (attached).

Since we had clarified our status as a plaintiff in the text of the complaint submitted by us on 8/5/2024

In addition, Article 113 states: Net profit consists of the surplus of imports over public expenses, burdens, consumptions, and other supplies.

50% of this net profit is in the Central Bank’s account, called the “general reserve,” and 50% is paid to

Treasury. When the general reserve reaches half of the bank’s capital, the net profit is distributed at a rate of 20 percent to the general reserve

And 80 percent goes to the treasury. If the result of one year is a deficit, the loss is covered by the general reserve, and if this reserve is not available or insufficient, the loss is covered by a parallel payment from the treasury.

If, as a result of deducting an amount under the previous paragraph, the balance of the General Reserve Account becomes less than half of the capital, the net profit will be distributed again at a rate of 50% to this account and 50% to the treasury until the account again reaches half of the capital.

Since the investigating judge may not refrain from applying an effective legal text that gives the head of the case body to represent the Lebanese state before the courts, based on Article 16 of the Ministry of Justice’s regulation and Article 18, fourth paragraph of the same law, which requires the head of the case body to take all necessary measures to defend the interests of the state. Lebanese

It is up to the adversary to state that the head of the case body is not qualified, and the investigating judge may not give it freely.

Since the statement of lack of capacity is related to the civil lawsuit before the primary court, it is not permissible to adhere to it before the investigating judge.

So

We ask you to accept our joining the current lawsuit and not to question the defendant Riad Salama except in our presence.

Please accept your respect, Beirut, September 9, 2024, Head of the Cases Authority at the Ministry of Justice

Judge Helena Iskander 

The arrest warrant against Riad Salameh marks a critical juncture in Lebanon’s efforts to hold former officials accountable amidst a deep economic and financial crisis. With ongoing legal challenges and potential international implications, the case will continue to be closely monitored both domestically and internationally.

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