Reported by
Last week’s decision by a Lebanese judge to refer former central bank governor Riad Salame to trial on charges of embezzling $44 million and illicit enrichment has been welcomed by anti-corruption advocates, but it has also raised concerns about the limited scope and potential impact of the case.
The referral, Salame’s first in Lebanon despite multiple international investigations, has been hailed as a long-awaited step toward accountability.
In addition to facing trial at home, Salame is under criminal investigations in France, Germany, Switzerland, Luxembourg, and Liechtenstein. Authorities in those countries accuse him and his associates of laundering hundreds of millions of dollars through offshore accounts and luxury real estate purchases.
Salame, who led Banque du Liban (BDL) for three decades before stepping down in July 2023, has consistently denied wrongdoing, claiming his wealth stems from prior employment and personal savings.
The Lebanese judge’s decision "echoes the proceedings we initiated in France and Luxembourg," said Chanez Mensous, Advocacy and Litigation Manager at the Illicit Financial Flows department of Sherpa, a French anti-corruption NGO.Â
She said the case could help pave the way for stronger legal cooperation with Europe and potentially lead to the return of embezzled public funds, particularly under France’s new mechanism for repatriating assets “as close as possible to the deprived populations.”
Enacted in 2023, the mechanism seeks to return assets acquired by foreign politicians through corruption, embezzlement, or other financial crimes committed in their home countries. Assets confiscated in France can be sold through legal cooperation with the country of origin, and the proceeds repatriated to benefit the affected population, in this case, Lebanon.
“Ensuring accountability and the restitution of illicit assets is essential for justice and for rebuilding public trust in Lebanon,” Mensous added.
However, others warn that the charges, focused solely on $44 million allegedly funneled through a consultancy scheme, fail to address the full scale of suspected financial misconduct. A forensic audit by consulting firm Alvarez & Marsal identified $111 million in questionable commissions.
“What about the remaining $67 million?” asked financial tax lawyer Karim Daher in a statement to OCCRP. He noted that if found guilty of embezzling just the $44 million, Salame could face up to seven years in prison and significant financial penalties.
Judge Ghada Aoun told OCCRP the Beirut indictment focuses only on two transactions directly linked to Salame, totaling $44 million, while the complex network behind the remaining funds has yet to be fully addressed.
In a statement released after the referral, Salame’s media office described the charges as “hastily prepared” and “legally flawed,” calling the case a politically motivated attempt to scapegoat the former governor for Lebanon’s economic collapse.
“Salame’s defense narrative taps into this debate about accountability, echoing perspectives that view him potentially as a scapegoat for these deep-seated, systemic failures where responsibility is shared among many actors,” said Walid Marrouch, an economics professor at the Lebanese American University.
While the court must judge the specific embezzlement charges, Marrouch argued that broader questions about Salame’s monetary policies, blamed by many for Lebanon’s financial implosion, should also be confronted.
However, “a trial of public opinion over his policies may prove more damaging to his legacy than the corruption charges themselves,” he said.
