The Prosecutor General at the Court of Appeal of Mount Lebanon, Ghada Aoun, in front of the Palace of Justice in Beirut, May 4, 2023. (Credit: Mohammad Yassine/L'Orient-Le Jour)
Mount Lebanon’s chief prosecutor, Ghada Aoun, filed charges on Feb. 28 — one day before her retirement — against former Prime Minister Najib Mikati, his brother Taha, and former Banque du Liban (BDL) Governor Riad Salameh for illicit enrichment, a judicial source close to the magistrate told L’Orient-Le Jour on Monday.
According to the source, Aoun accuses the Mikati brothers of borrowing $300 million from Bank Audi and using those same funds to purchase shares in the bank. They allegedly acquired more than 10 percent of the shares, despite regulations prohibiting a company from purchasing more than 5 percent of a bank without board approval. The brothers reportedly circumvented this rule by falsely presenting themselves as separate entities.
Aoun also alleges they used the loan receipts as collateral for the loan. While the alleged offense dates back to 2010, she argues it remains prosecutable, as illicit enrichment is not subject to a statute of limitations. The Mikati brothers have previously denied wrongdoing.
Riad Salameh under scrutiny
Aoun also filed charges against Salameh, accusing him of “facilitating” the Mikati brothers’ alleged scheme through influence peddling and his control over banks, according to the same source.
This is not the first time Aoun has targeted the former prime minister. In October 2019, she filed illicit enrichment charges against Najib, Maher and Taha Mikati, as well as Bank Audi. That case stemmed from media reports alleging that public figures misused the BDL's subsidized housing loan program between 2009 and 2018.
The case, which involved tens of millions of dollars, was later reassigned to Beirut’s interim chief examining magistrate, Charbel Abou Samra, after then-Attorney General Ghassan Oueidat temporarily suspended Aoun. In 2021, Abou Samra dismissed the case on the grounds that the alleged offenses had occurred before a 2020 legal amendment abolished the statute of limitations for such crimes. Several legal advocacy groups, including Legal Agenda, contested the ruling.
In a statement on Monday, former Prime Minister Najib Mikati denounced “the series of summonses based on no evidence” targeting him and his brother. “This is not the first time ... that Ghada Aoun has made false accusations against [the former] Prime Minister and his family, associating their names with financial operations and alleged transfers ... as well as unproven 'fraudulent methods,'” said the statement, which was relayed by the state-run National News Agency (NNA).
“[The former] Prime Minister, his brother and their families have nothing to do with these accusations ... These are fabricated files used for defamation purposes,” it stated, adding that "the latest complaint concerns an operation that took place in 2010 and was in compliance with the law."
The press release also said that previous “[judicial] decisions have cleared Najib Mikati and his family of Judge Aoun's accusations, notably in the case of commercial bank loans and others.” The statement went on to accuse the prosecutor of “illegal and unprofessional motives.”
“Respect for truth, professionalism and objectivity means not taking advantage of the country's economic and financial crises, including the depositors' crisis, for personal objectives or political score-settling,” it said. “No condemnation has been issued against Najib Mikati and his brother or any company affiliated to them ... either in Lebanon or abroad ... concerning ... illicit enrichment, money laundering or the squandering of public funds.”