Raja Salameh, brother of the Governor of the Central Bank of Lebanon, failed to attend a hearing in Beirut today, Tuesday, with European investigators looking into whether the brothers embezzled and laundered hundreds of millions of dollars from public funds over more than a decade.
European investigators arrived in Beirut yesterday, Monday, and were scheduled to question Raja as part of the investigation this morning. However, he did not attend the session, and a senior judicial source told Reuters that his lawyer briefly attended to state that he was unwell. Both Raja and Riad Salameh, the Governor of the Central Bank of Lebanon, are being investigated in Lebanon and at least five European countries for allegedly taking more than $300 million from the central bank through commissions charged on bond purchases and then transferring the money to "Forry Associates," owned by Raja.
The brothers have denied committing any crime. Raja's lawyer (age 62) did not respond to a request for comment from Reuters on Tuesday. Riad Salameh (age 72) has previously denied the embezzlement allegations, claiming that the commissions collected are not public funds.
According to court documents from France reviewed by Reuters, French prosecutors state that "the funds obtained from 'Forry' were used to conduct several real estate purchases across Europe and the United Kingdom." The documents also indicate that "prosecutors suspect Riad used forged banking documents in Raja's name to cover up the sources of illicit wealth."
European investigators questioned the Governor of the Central Bank in Beirut over two days in March, inquiring about the central bank's relationship with "Forry," the Governor's assets abroad, his wealth sources, and the transfers he made to his partners and relatives.
The investigators returned to continue questioning Raja and a female aide to the Governor named Marian Hawiik. The three have been accused of financial crimes in two separate cases in Lebanon, but no formal public charges have been brought against them yet in the European countries conducting the investigation.
French prosecutors informed Riad that they intend to file charges of fraud and money laundering during a hearing scheduled in France on May 16. Salameh's lawyer stated earlier this month that his client has not yet decided whether he will attend the French hearing.
Last spring, Raja was detained in Lebanon for nearly two months on charges of involvement in "illicit enrichment," which also implicated his brother. Raja was released on a standard bail of 100 billion Lebanese pounds, or approximately $3.7 million at the then-current market exchange rate.
