State Security confirms $260,000 misappropriation of Beirut Municipality funds

The General Directorate of State Security (GS) has discovered the misappropriation of approximately $260,000 from the Beirut Municipality Treasury, following a judicial investigation into irregular financial disbursements to Beirut Fire Brigade employees, a statement from the Directorate confirmed.

The investigation was launched last week regarding the withdrawal of $330,000 from the municipality’s funds without official approval of the municipal council or Beirut Governor Marwan Abboud.

“The Beirut Regional Directorate conducted a judicial investigation into suspected misappropriation of funds from the Beirut Municipality Treasury. During the investigation with the employee K. A. A., it was discovered that he had handled amounts belonging to the municipality estimated at around $260,000, which were disbursed as compensation to several employees of the Beirut Fire Brigade in violation of legal procedures,” the statement said.

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“The audit carried out by the Court of Accounts on the municipality’s treasury accounts also revealed irregularities in financial accounting. Based on the judiciary’s directive, the employee was arrested, the investigation was concluded, and the file was referred to the competent judicial authority,” it added.

On Monday, Financial Prosecutor Maher Cheaito ordered the continued detention of the Beirut municipal treasurer, K. A. A., who had been initially arrested last Thursday by State Security as part of the investigation.

The Prosecutor had announced he had closed the investigation, paving the way for prosecution and the treasurer’s referral to Beirut’s First Investigating Judge,” the state-run National News Agency (NNA) reported.

According to Interior Minister Ahmad Hajjar, the Court of Audit launched an inquiry on Wednesday to determine the reasons behind the $330,000 withdrawal.

The payment stems from a legal dispute dating back to 2019 over unpaid fuel vouchers for the fire brigade, which had been suspended due to Lebanon’s ongoing economic crisis. Despite a 2023 State Council ruling ordering the municipality to compensate the officers, payments were delayed, prompting complaints and legal action from the officers’ lawyer, Mohammad Jaafil.