Raja Salameh, brother of Lebanon's central bank chief, appears before EU judges

He is accused of helping Riad Salameh embezzle more than $330 million

Lebanese police outside the Justice Palace in Beirut. Reuters

Raja Salameh, the brother of Lebanon's central bank governor Riad Salameh, appeared at the Beirut Palace of Justice on Thursday morning for questioning by a delegation of European judges visiting Lebanon as part of an international corruption investigation, local media reported.

A judicial source had earlier confirmed to The National that the hearing was scheduled for Thursday — but Raja Salameh's presence was uncertain until the last moment.

Raja Salameh did not attend a hearing last Tuesday, when his lawyer submitted a medical report to account for his absence.

The source said Raja Salameh was heard as a suspect on Thursday, but he reportedly entered the court without his lawyer, meaning he considers his status to be that of a witness.

The European delegation of official judicial representatives, comprising investigators from France, Germany and Luxembourg, began a two-week visit last week.

According to a source familiar with the matter, the German prosecutor responsible for the case returned to Lebanon specifically to attend Raja Salameh's hearing after briefly leaving the country.

At least six European countries are investigating the alleged embezzlement of more than $330 million from the central bank by Riad Salameh.

Raja Salameh is suspected of helping his brother in an alleged money-laundering scheme at the central bank through a brokerage contract awarded to a company called Forry Associates, which he owned.

It is alleged that for more than a decade, banks were unknowingly paying commissions to the governor's brother's company for every financial instrument they bought from the central bank.

These commissions were then allegedly funnelled via the Luxembourg and Swiss banking systems to acquire properties in Europe worth millions of euros, which are owned by the governor and his entourage.

Both brothers deny wrongdoing, with Riad Salameh repeatedly saying that no public funds entered his accounts.

The French judiciary informed Riad Salameh last week of its intention to formally name him as a suspect at a hearing scheduled in Paris in May.

The European delegation has conducted several hearings since they arrived, including one with Riad Salameh's former romantic partner Marianne Hoayek, international and local auditors and central bank officials.