Salameh blames 'Shiite Duo' and FPM for banking collapse

Former Central Bank governor Riad Salameh asserted in an interview with Al-Arabiya Business that he has become a “scapegoat” for the financial crisis that has plagued Lebanon in recent years, denying any connection to depositors' losses or the collapse of the banking sector.

Salameh stated that he is not implicated in any of the legal cases pending in Lebanon, France, or any other European country, noting that the Syrian war cost Lebanon $25-30 billion.

Salameh added that he took office in 1993 with over $20 million in personal wealth, noting that in 2021 he requested a comprehensive audit of his accounts, and that "no evidence of any illicit funds was found."

“What happened was a conspiracy that began in 2015,” Salameh said.

He indicated that what he faced was “not an ordinary legal case” but rather “a coordinated political conspiracy” that, according to him, began in 2015, “aimed at striking the banking sector and dismantling financial structures designed to protect the Lebanese pound.”

He added: “Me being used as a scapegoat was part of a broader political and economic scheme,” noting that the collapse that occurred in 2019 was preceded by “organized campaigns” orchestrated by partisan entities with political agendas.

Salameh believes that the banking collapse the country has witnessed in recent years “was not solely a result of decisions made by the Central Bank of Lebanon,” but rather due to “the government of the Shiite Duo and the Free Patriotic Movement, which adopted unsustainable financial policies,” as he put it.

Salameh also emphasized that “government policies, uncontrolled spending, and the obstruction of reforms” formed the basis of the financial explosion that wiped out the savings of the Lebanese people.

Moreover, Salameh denied that he or the Central Bank of Lebanon were directly responsible for Lebanese citizens losing their deposits, stating that "the Central Bank's financial engineering contributed for years to protecting the economy, and the collapse occurred when the state defaulted on its debts."

He explained that all ongoing investigations in several European countries "do not include any convictions," and that the files are still "under review," noting that his name "is being used in Lebanese political debates and not in any clear legal proceedings."

Salameh indicated the possibility of depositors' funds being returned as long as banks do not declare bankruptcy, revealing that a Western plan had been proposed to bankrupt some banks and establish new ones. He pointed out that he issued a circular between 2017 and 2020 to repatriate a portion of the funds that had left the country.