Riad Salameh has been Banque du Liban’s governor since 1993. (Credit: AFP)
BEIRUT — Following reports Monday of a criminal case opened by judicial authorities in Luxembourg in relation to his financial dealings, Banque du Liban Governor Riad Salameh said in a statement Wednesday that he had asked a "reputable firm" to conduct an audit into investments and transactions that have been subject to media speculation. Salameh listed what he said were the results of the audit by the firm, which he did not name, claiming that the source of his personal wealth is “transparent and documented.”
Here’s what we know:
• Salameh said the audit revealed that no Banque du Liban or public funds were used in transactions with Forry Associates, a company owned by Salameh’s brother that had been at the center of one of the probes into the central bank governor’s dealings. Salameh claimed that the central bank was only acting as an intermediary between third party individuals and Forry Associates.
• “These results clearly show that not a single penny was used from public funds to pay fees and commissions to Forry Associates Ltd,” Salameh said in the statement. “My opponents, who have organized systematic campaigns against me, have misled public opinion by spreading false information that public funds have been used,” he added.
• A Swiss legal request filed earlier this year as part of a probe into potential embezzlement alleged that Forry Associates, a company owned by Raja Salameh with a bank account in Switzerland that had taken commission on sales of Lebanese eurobonds and treasury bills, was paid $326 million by the central bank between 2002 and 2014 in transactions labelled as fees and commissions. Salameh at the time denied allegations of wrongdoing.
• Salameh said the source of his wealth has been "clear and documented," explaining that he was a "successful banker at Merrill Lynch" for nearly two decades with an annual income of around $2 million before he left in 1993.
• "My fortune amounted in 1993, 28 years ago, to $23 million in addition to inherited assets," Salameh said, adding that it was invested and has increased in value.
• The central bank governor has faced increased scrutiny of his 28-year tenure due the meltdown of Lebanon's financial system.