Salameh ends 30-year tenure with acclaim and blame
Lebanon's embattled central bank governor stepped down Monday under a cloud of investigation and blame as tearful employees took photos and a band played celebratory music with drums and trumpets.
"The central bank has stood firm," Salameh told cheering employees in a video shared by local media. "During the crisis, it was a pillar that allowed Lebanon to carry on."
In that same building, his four vice governors, led by incoming interim governor Wassim Mansouri, quickly pivoted to urge fiscal reforms for the cash-strapped country.
Seventy-three-year-old Riad Salameh kicked off his tenure as central bank governor in 1993, three years after Lebanon's bloody 15-year civil war came to an end. It was a time when reconstruction loans and aid was pouring into the country, and Salameh was widely celebrated at the time for his role in Lebanon's recovery.
Now, he leaves his post a wanted man in Europe, accused by many in Lebanon of being a main culprit in the country's financial downfall since late 2019.
It was a steep fall for a leader whose policies were once hailed for keeping the currency stable. Later, many financial experts saw him as setting up a house of cards that crumbled as the country's supply of dollars dried up on top of decades of rampant and corruption and mismanagement from Lebanon's ruling parties.
The crisis has pulverized the Lebanese pound and wiped out the savings of many Lebanese, as the banks ran dry of hard currency.
With the country's banks crippled and public sector in ruins, Lebanon for years has run on a cash-based economy and relied primarily on tourism and remittances from millions in the diaspora.
France, Germany, and Luxembourg are investigating Salameh and his associates over myriad financial crimes, including illicit enrichment and the laundering of $330 million. Paris and Berlin issued Interpol notices to the central bank chief in May, though Lebanon does not hand over its citizens to foreign countries.
Salameh has repeatedly denied the allegations and insisted that his wealth comes from his previous job as an investment banker at Merrill Lynch, inherited properties, and investments. He has criticized the probe and said it was part of a media and political campaign to scapegoat him.
In his final interview as governor, Salameh said on Lebanese television that the responsibility for reforms lies with the government.
"Everything I did for the past 30 years was to try to serve Lebanon and the Lebanese," he said. "Some -- the majority -- were grateful, even if they don't want to say so. And there are other people, well may God forgive them."
Salameh's departure adds another gap to crisis-hit Lebanon's withering and paralyzed institutions. The tiny Mediterranean country has been without a president nine months, while its government has been running in a limited caretaker capacity for a year. Lebanon has also been without a top spy chief to head its General Security Directorate since March.
Lebanese officials in recent months were divided over whether Salameh should stay in his post or whether he should step down immediately in the remaining months of his tenure.
Caretaker Economy Amin Salam wanted the latter, given that the central bank chief had a "legal question mark."
"I cannot explain anyone holding on to a person while a nation is failing unless there is something wrong or hidden," Salam told The Associated Press.
31 July 2023, 19:52
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CENTRAL BANK can only function properly in stable and growing economy. Lira would not devaluated if growth was 2% of higher. Banks would be fine & depositors not lost any money if interest did not skyrocket due to political instability. Debt would not increased if Lebanon remained attractive to business & investment. Lebanon despite corruption was to become next Singapore due to its education, sophistication, democracy, open economy, climate and entrepreneurial spirit. All changed by Hizbollah actions whose mission was to transform Lebanon into an Iranian rocket base and a tool for Iran’s regional hegemony. Economic cost alone of assassinating Hariri and killing 22 persons is in tens of billions. Cost of other actions from 2006 War to justify its arms, blocking parliament to prevent court, blocking elections to install its puppets is easily in hundreds of billion. No Central Bank can fix a systematic destruction of all economic pillars.
31 July 2023, 19:52
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THE BIG LIE is that Hizbollah liberated Lebanon, protected borders & improved Shia’s life. Nothing is further from truth. Hizb is the biggest curse on Shia as Aoun/Bassil on Christians. The damage they caused will take generations to fix and will be fully documented in economic thesis at best universities. Security does not depend on rockets but on economic strength, political stability and sovereignty. Just look at UAE & Qatar. Lebanon has never been less secure, less independent with porous borders, a beggar nation. Hizb political risk destroyed Lebanese economy & reputation for business; caused high interest drying up investment & causing exodus of foreign firms & tourists. In 2005 we had 8% growth. The 2006 War, Hizb M14 assassinations & Duo blocking parliament & Downtown Beirut reduced growth to zero. 6% growth is what transformed China and Turkey. Hizb actions took us to hell & isolation impacting primarily Shia community.
31 July 2023, 19:52
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THE ROAD FROM HERE. Lebanon remains a country with incredible human resources and natural assets. It can restore its role as the region’s Singapore as soon as political stability & sovereignty restored, no arms outside army, political mafia brought to justice and reforms implemented. A democratic Lebanon with emphasis on freedom, open economy and neutrality is a regional necessity that will become a hub for innovation & technology. From mini-Silicon valleys throughout Lebanon to decentralized universities & technical centers propelled by Lebanese expat worldwide expertise in all fields. No glitzy skyscrapers can provide the competence & concentration of human resources Lebanon can offer. Our location on Mediterranean is an asset. Pipelines from Iraq/Kuwait/Saudi can bypass Hormuz & Suez. Plus we can use Syrian refugees for major infrastructure projects getting paid to teach them skills later useful in rebuilding Syria.
31 July 2023, 19:53
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REACHABLE DREAM: Walid Bin Ibrahim recently stated he considered Beirut as headquarter for MBC before Hariri Assassination. We should never underestimate how quickly Lebanon can recover its attractiveness for investment & innovation considering capable diaspora, universities and culture. First must restore quality education & universities in all regions. Location on Mediterranean is a major asset. We can benefit from advances in artificial islands, renewable energies, tunnels, bridges, airports, museums and preserves. Tunnels and monorails can transform transport, reduce congestion, link cities and enhance ports. Giga wifi can create remote offices for international firms. Lira devaluation made our engineers competitive worldwide, also reduced bloated public sector budget. Baalbeck, Tyre & Bsharre are as impressive as any Egyptian cities. Future can be magic if country & culture no longer hijacked by Basij. Just the constructive dream Imam Mousa Saddr wanted.
