Judge probing Lebanese banks told to pause investigation

Ghada Aoun is looking into alleged financial mismanagement by Lebanese banks

Lebanese prosecutor Ghassan Oueidat, left, and Lebanese judge Ghada Aoun. Photo: NNA

Lebanon's senior prosecutor has instructed a judge investigating alleged financial mismanagement by banks to temporarily halt her probes, in the latest judicial tug of war in the country.

Mount Lebanon prosecutor Ghada Aoun has been investigating the Lebanese banking sector over the 2019 economic collapse that has been blamed on decades of financial mismanagement and corruption.

But her investigation has often run into roadblocks and she has been the subject of several complaints.

Earlier this month, she charged financiers from Bank Audi and Audi Group with money laundering for failing to lift banking secrecy on the accounts of senior figures at the firm. She has also demanded account information from other Lebanese banks.

Last week, Prime Minister Najib Mikati accused Ms Aoun of “overstepping” her authority. In a controversial move, he told the interior minister to order security forces not to carry out Ms Aoun's judicial decisions.

In the latest development, top prosecutor Ghassan Oweidat told Ms Aoun to “temporarily suspend” her “investigative procedures until decisions are taken on the issues raised”.

Lebanon's judiciary is heavily politicised. Ms Aoun called Mr Mikati's actions “a total breakdown of justice” and “an unprecedented interference in the work of the judiciary”.

Earlier this month, banks in Lebanon began an indefinite strike amid what they described as haphazard judicial moves against them. Amid the deadlock, they announced last week that they would suspend the strike for a week, while demanding a long-term resolution of the “deficiency” in the judiciary.

Ms Aoun has also charged central bank governor Riad Salameh with money laundering and illicit enrichment.