Riad salameh news

But his final months were marred by allegations of financial crimes including illicit enrichment through public funds by authorities in Lebanon and several other countries.

He is wanted by authorities in France for alleged financial crimes, with Interpol issuing “red notices” targeting him. He has said he will appeal the Interpol notices.

In the last weeks, Salameh has appeared before the courts but few Lebanese believe this will result in any answers, given Lebanon’s highly politicised judiciary.

One of the investigating judges, Ghada Aoun, was accused of bias and dismissed from the case in May shortly after charging Salameh.

“They’re punishing me for doing my job,” she told reporters at the time.

The two collapsed, what more can you say?”

The IMF said BDL “accumulated large losses, especially with the advent of the financial engineering operations” through quasi-fiscal operations – like subsidies on construction, tourism, education, fuel, and medicine.

“All of this is government work, not to be done by the central bank, but … governments and politicians were very pleased to have a central bank financing things they should have found resources for,” says Saidi.

“Along with the politicians and others, the banks were beneficiaries.

State services have been battered, including the electricity sector, leaving those who can afford the cost to rely on private generators.

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The World Bank estimates $11bn is needed for the job, and the next governor is crucial for unlocking funds from the International Monetary Fund (IMF) that will encourage more support from the international community.

On Wednesday, Lebanese media reports marked Souaid, the founder of Bahrain-based private investment firm Growthgate Partners, as the frontrunner.

Sources told Al Jazeera that while the IMF did not comment on candidates, Souaid’s proposed policies do not match the required reforms.

‘Another Riad Salame’

Two camps had emerged in response to Souaid’s candidacy.

On one side were the banks, banking lobby, most of the significant traditional parties – including ideological adversaries like Hezbollah and the Lebanese Forces – and President Joseph Aoun, whose economic adviser, Varouj Nerguizian, is a board member of Souaid’s investment firm.

On the other side were some reformist ministers, independent MPs, reform-minded NGOs, and sceptics, including Prime Minister Nawaf Salam.

After Souaid was voted in, Salam delivered a speech admitting he and other ministers had reservations about the new appointment.

“Any governor must abide by the financial policy of our reformist government as expressed by the ministerial statement [that includes] a new programme with the International Monetary Fund, restructuring banks, and devising a complete plan according to the best international standards to preserve depositors’ rights,” Salam said.

Souaid has yet to comment on what his plan for the central bank would be.

But those opposed to Souaid say he is too close to power and his policies overwhelmingly favour the banking lobby.

So you have this combination of support of the major beneficiaries and that’s why he remained in power for so long,” he adds.

But recently, Salameh was charged with money laundering, fraud and embezzlement to the tune of $330m in Lebanon and abroad.

He had also been charged in Lebanon with illicit enrichment. During the crisis, many depositors withdrew their money while the Lebanese lira was plummeting, while some of the country’s wealthiest moved their money abroad.

‘It’s a mafia’

In 2020, the Hassan Diab government proposed a solution that experts told Al Jazeera would have met the IMF’s specifications.

Former Prime Minister Najib Mikati’s son Maher is also a board member of Souaid’s investment firm.

“They’re trying to bring in another Riad Salameh,” said Mohammad Farida, economic adviser for the Depositors Union, an NGO that argues that banks and not depositors should be held accountable for the 2019 financial crisis.

Salameh is the former central bank governor who was arrested in September for financial crimes in Lebanon and is the subject of numerous financial investigations in five different European countries.

Every minister will be ‘held accountable’

Lebanon is entering the sixth year of a devastating economic crisis and badly needs relief funds from the IMF, which has laid out several reforms Lebanon needs to apply to receive those funds.

A parallel battle for accountability for the tens of billions in economic losses has been at an impasse for five years as the political class, backed by the banking lobby, focused on scuttling any effort at passing reforms the IMF deems critical to unlock $3bn in relief funds.

The fight essentially comes down to who should bear responsibility for the 2019 economic collapse and bear the losses.

The pro-banker side believes the state is primarily responsible for the collapse after defaulting on eurobonds.

To recover depositors’ money, they say, the state should pay the banks back through actions like selling off state assets. Protests against the country’s sectarian system led to violent clashes between factions and the instability was worsened by civil war breaking out in neighbouring Syria. As this pressure increased, so too did the battle over who would lead Lebanon’s central bank since this figure will deeply affect Lebanon’s economic and banking agenda over the coming years.

The banks’ side, which supports Souaid, has been spearheaded by Antoun Sehnaoui, the chairman of the board of the SGBL Group.

Sehnaoui also funds Lebanese media outlets and is believed to be close to many politicians.

The lira went down with it, sliding to about 90,000 to the dollar on the black market.

Who benefitted?

“What is the function of any governor of the central bank?” asks Toufic Gaspard, Lebanese economist and former adviser at the International Monetary Fund (IMF).

“To preserve the stability of the currency and more important, preserve the stability of the banking sector.

We respect the judiciary’s decision,” caretaker Justice Minister Judge Henry Khoury said.

Caretaker Prime Minister Najib Mikati told pan-Arab broadcaster Al-Hadath that the government will not intervene in the case.