Lawsuit filed in France seeks probe of Lebanon’s plundered wealth
A legal complaint in France accusing Lebanon’s central bank governor Riad Salameh and his associates of funnelling hundreds of millions of euros out of the country is only a small part of a much bigger scandal, activists say.
Two groups filed statements to French prosecutors accusing the governor, members of his family and close associates of enriching themselves by using shell companies to buy luxury property in France.
The complaint lists nearly 20 senior Lebanese politicians and suggests that bank owners and shareholders could also be pursued, according to reports of the leaked 81-page dossier.
Mr Salameh said that he was independently wealthy before taking up his post as central bank governor in 1993. He said he was then worth $23 million.
“I have also declared that my properties in France were acquired prior to being governor,” the former Merrill Lynch banker told Reuters.
The action by Sherpa, which specialises in fighting financial crime, is based on identifying “hundreds and hundreds of millions” of euros linked to the Salameh clan, sources close to the case say.
Work by Sherpa was key to the conviction of Rifaat Al Assad, the uncle of Syrian President Bashar Al Assad, for using looted national riches to build a vast European property portfolio.
The focus on plundered assets began 15 years ago following claims by French activists that 23 dictators, former dictators and their families had squirrelled away $200 billion in assets in western countries.
The latest case involving Mr Salameh is significantly more complex but officials at Sherpa said the “wind had changed”, with France more determined to bring allegedly corrupt senior officials to book.
French MPs earlier this year backed a new law that would allow seized assets to be repatriated to the countries from where they were looted.
The Sherpa claim is the second lodged in France by groups campaigning to expose years of corruption and mismanagement in Lebanon.
Complaints have also been filed in Switzerland and the UK, where law enforcement agencies are carrying out a preliminary assessment of a string of properties said to be connected to the Salameh clan.
The Swiss Attorney General’s office said in January that it was investigating “aggravated money laundering in connection with possible embezzlement” to the detriment of the Lebanese central bank, or Banque du Liban.
Sherpa wants an international investigation of an alleged conspiracy to launder money and engage in fraudulent commercial practices, among other activities.
Mr Salameh, who owns a luxury seafront villa in Antibes on the French Riviera, has rejected the figures put forward by his accusers. The case also includes Mr Salameh’s brother Raja, his son Nady and an associate at the central bank, Marianne Houwayek.
“France will have to ensure that ill-gotten funds will be returned to serve the general interest, improve the living conditions of the Lebanese, strengthen the rule of law and fight against corruption,” Sherpa said.