Lebanon cenbank governor, brother sue state over ‘mistakes’ in embezzlement probe

Lebanon’s Central Financial institution Governor Riad Salameh speaks throughout an interview for Reuters Subsequent convention, in Beirut, Lebanon November 23, 2021. REUTERS/Mohamed Azakir

BEIRUT, June 3 (Reuters) – Lebanon’s central financial institution governor and his brother are suing the state over what they are saying have been “grave errors” made by a public prosecutor in his investigation of whether or not they had embezzled public funds, in line with a replica of the lawsuit.

Their declare has led to considerations that the general public probe into the 2 brothers may stall, after comparable lawsuits paralysed an investigation into the devastating 2020 explosion at Beirut’s port.

Public prosecutor Jean Tannous has been investigating allegations of embezzlement and different misconduct on the central financial institution involving $300 million in positive factors made by an organization owned by Raja Salameh, brother of Lebanese Central Financial institution Governor Riad Salameh.

The brothers have denied the accusations.

This week, they filed a go well with towards the Lebanese state accusing Tannous of committing “grave errors” by way of the course of his probe, in line with a replica of the lawsuit seen by Reuters on Friday.

Tannous declined a Reuters request for remark whereas Riad Salameh didn’t instantly reply to the same request.

The doc alleges that Tannous is biased and lacks the authorized authority to entry financial institution data, arguing that solely the central financial institution’s particular investigation fee has that prerogative.

The fee is usually headed by the central financial institution governor. Salameh informed Reuters earlier this yr he stepped again from presiding over it so far as it pertains to his case, “so there is no such thing as a battle of curiosity”.

The lawsuit additionally claims that Tannous’s try and acquire account data from business banks in January as a part of the probe violated banking secrecy legal guidelines. It additionally accuses Tannous of circumventing official channels to coordinate immediately with judiciaries overseas on the probe.

Riad Salameh is dealing with judicial probes in a minimum of 5 European nations over the identical accusations of embezzlement and money-laundering.

In Might, French investigative choose Aude Buresi traveled to Beirut and met with Tannous, Lebanon’s prime prosecutor Ghassan Oueidat, and different judges.

Throughout her go to, the central financial institution’s particular investigation fee handed over account data on Raja Salameh from 9 Lebanese banks to Oueidat, within the first identified case of such information-sharing.

Nizar Saghieh, the top of rights watchdog Authorized Agenda, stated the lawsuit may “freeze the case indefinitely” because it was filed to a public court docket whose members have but to be named.

Related lawsuits filed to this physique have managed to stall one other state investigation into the causes behind the Beirut port blast, which killed greater than 215 individuals.

Reporting by Timour Azhari, Writing by Maya Gebeily, Enhancing by Raissa Kasolowsky

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