A judicial investigation led by the President of the Beirut Court of Appeals, Judge Samir Akiki, has revealed the involvement of Minister of Economy Amin Salam, his brother Karim, and his advisor Fadi Tamim in exploiting their power to extort financially troubled insurance companies seeking to maintain their licenses following the Beirut port explosion in 2020. After the arrest of the financial prosecutor, Judge Ali Ibrahim, of Tamim earlier this year, which concluded with just the withdrawal and then return of Karim Salam's passport, Akiki resumed the file and issued a ruling on June 25, 2024. This ruling sentenced Tamim to three years in prison with hard labor, later reduced to one year after he returned the full amount he received as a bribe, according to "Al-Akhbar."
The investigation was referred back to the financial prosecutor, Judge Ali Ibrahim, to consider appropriate actions against Georges Matousian, the General Manager of the Mashrek Insurance Company, and Beirut Mayor Abdallah Darwish, who holds a managerial position in the company, as well as Karim Salam. This has put the responsibility back on Ibrahim, who is expected to be close to filing charges against the minister's brother, according to sources.
According to the investigation conducted by Akiki, which "Al-Akhbar" reviewed, the minister's brother and advisor worked together to extort insurance companies wishing to renew their licenses by demanding money in exchange for renewal or granting them grace periods to rectify their statuses. This extortion began the day after the port explosion when insurance companies started evading compensation payments due to affected parties by offering checks that couldn’t be cashed or payments in foreign currency. Former head of licensed accountants, Eli Aboud, who was recently re-elected with a list supported by the Lebanese Forces, proposed during a meeting with the Minister of Economy and his brother to conduct financial studies of several large companies to assess their financial conditions. Among these companies was Mashrek Insurance Company, which was violating laws and conditions, making it an attractive target for the minister's brother and advisor.
Under the threat of revoking the company's license, Tamim demanded $250,000 as fees to resolve the company's situation. When Matousian paid Tamim $100,000, the latter insisted on the full amount. When Mashrek refused to comply, the Ministry of Economy revoked its license, prompting Matousian to file a report with the financial prosecutor's office late last year against Karim Salam's brother and Fadi Tamim for extortion. However, Judge Ibrahim only condemned Tamim and imprisoned him without pursuing the minister's brother. Nevertheless, Akiki expanded the investigation, re-summoning the accused, the minister's brother, and witnesses, including the Mayor of Beirut, who claimed he had suspended his work in the company upon assuming the mayorship.
According to information, Darwish played a key role in this case, reportedly initiating the request for Tamim's assistance to resolve the dispute between the ministry and the company, meeting Tamim for this purpose in the Beirut Municipality building. The latter demanded $400,000 to resolve the issue. Darwish testified that he ended the meeting after feeling extorted, leading Matousian to continue communications with Tamim and negotiate a sum of $250,000, but he only paid $100,000, stating he would pay the remainder upon obtaining a letter of clearance—a request the advisor refused, leading to the revocation of the company's license.
Darwish claimed he visited Prime Minister Najib Mikati to seek help and informed him about the $100,000 payment to the Minister's advisor, which angered Mikati, prompting him to instruct Darwish to tell the advisor to settle the matter. When Darwish contacted Eli Aboud to convey the message to Tamim (both own an auditing company together), Tamim replied that the Prime Minister should obtain the clearance themselves. At that point, Mikati advised Darwish to file a report with the financial prosecutor, which occurred in November 2023, when Darwish indicated that several insurance companies had paid bribes.
**Political Pressure to Resolve the Case**
On that occasion, Darwish, Karim Salam, Tamim, and Matousian were interviewed. Salam stated that he assists his brother (the minister) on political and economic levels, attending all economic meetings due to his expertise, unlike his brother. He explained that Tamim is a consultant for political matters and that the insurance companies' oversight committee reports directly to the Minister of Economy, with companies obligated to maintain several legal conditions under the threat of license revocation if they breach them, after repeated warnings. He noted that Mashrek was struggling to cover its insurance policies since the start of 2023, which led to its license being suspended due to failing to submit its financial reports for the last three years despite warnings.
Salam denied receiving any payments from the company but was unsure whether Tamim had done so, affirming he met with the company owner several times in the ministry thanks to the arrangement from the Beirut Mayor.
**Investigation Findings: Extortion Under Ministry Protection**
In the latest investigative session held on June 13, 2024, Judge Samir Akiki presented all facts and evidence since the report was received, including Matousian stating that the Ministry of Economy threatened to revoke Mashrek's license, noting that the threat was communicated through the minister's brother, and that auditor Eli Aboud advised him to comply with Tamim's offer to close the case. Matousian indicated he received offers from Tamim as one of the minister's advisors, with Aboud and Darwish acting as intermediaries. He noted that the advisor returned the $100,000 after a directive from the financial prosecutor, stating that the $250,000 requested wasn't for fees but extortion, which he agreed to pay to avoid losing his license.
During questioning, Akiki noted that Aboud denied any request from Tamim for specific financial documents regarding the company, implicitly indicating a reluctance to conduct any audits without expressing a clear opinion on whether receiving payment constituted a bribe.
Ultimately, Akiki asserted that it was legally established that Tamim is a political advisor to the Minister of Economy (his images appear in all meetings held by Minister Salam), visiting the ministry two to three times a week as confirmed by the minister's brother. Thus, he is considered an employee, subject to the definition of an employee according to Article 350 of the Penal Code. As a result of his demand for $250,000 and acknowledgment of receiving $100,000 from Mashrek's owners to resolve the company's illegal status without formalizing any contract, and bargaining over the amount without clarifying its nature or function, there is evidence suggesting that his goal was to perform actions contrary to his position, fulfilling the criteria of Article 350 of the Penal Code for criminal charges.
The judge also imposed a penalty on him pursuant to paragraph 9 of the Anti-Money Laundering Law regarding earning illegal funds from corrupt activities, including bribery. According to Judge Akiki, it was clear that briber Georges Matousian had not been prosecuted in this case, even though the law does not exempt him from prosecution; his exemption from punishment is contingent on conditions being met following proper legal procedures, alongside serious suspicions surrounding the role of Minister of Economy's brother, Karim Salam, in this case, warranting further investigation into his role and potential prosecution should evidence arise.
As for Chief Accountant Eli Aboud, the judge determined that he provided evidence before the court in a manner that raised ambiguity and obscurity around the facts, necessitating verification of conditions for withholding information under Article 408 of the Penal Code. The court deemed it necessary to refer the documents again to the relevant prosecutor's office to review and take appropriate measures against Georges Matousian, Karim Salam, and Eli Aboud, based on the preceding information. The judge did not mention the Mayor who mediated between the insurance company and the Minister’s advisors.
Today, the case returned to Judge Ibrahim, who is expected to decide on formal charges against the minister's brother and prosecute Matousian and Aboud as well. "Al-Akhbar" learned that the Minister of Economy is exerting political pressure on Akiki and the officials in the financial prosecutor's office to close the case and prevent action against his brother. He recently visited Speaker of the Parliament Nabih Berri, who advised him to report the insurance companies himself. He also visited Mikati, apologizing for past derogatory remarks and for inciting families from Beirut against him, and sought to resolve the case amicably.
