Lebanon arrests fmr economy minister Amin Salam on embezzlement charges

BEIRUT — Lebanese authorities arrested Wednesday former Minister of Economy Amin Salam on charges of forgery, embezzlement and misuse of public funds, in a rare move against a high-ranking official in Lebanon.

What happened: Attorney General at the Court of Cassation Judge Jamal Hajjar ordered the arrest of Salam following a three-hour interrogation over his alleged involvement in forgery, signing suspicious contracts and misappropriation of funds.

The case under which Salam was arrested differs from another ongoing investigation also involving the former minister over allegations of illicit enrichment, embezzlement and extortion of private insurance companies, the state-run National News Agency said Wednesday.

Salam has been under investigation since March, following a complaint filed by parliament member Farid Boustany, head of the parliament’s National Economy Committee. The complaint accuses Salam of blackmailing private insurance companies and using funds from the Insurance Control Commission — a regulatory body overseeing the insurance sector under the Ministry of Economy — for personal expenses during his tenure at the ministry.

The complaint also included Salam’s brother and business associate, Karim Salam; his adviser, Fadi Tamim; and Elie Abboud, a certified public accountant.

The parliamentary National Economy Committee filed its complaint after reports emerged last year of several insurance companies being subjected to blackmail by Karim, who allegedly threatened to revoke Al-Mashreq Insurance Company’s license unless it paid $250,000 in fees to a company owned by Tamim to settle its legal status, according to the local Al-Akhbar newspaper.

A report by Asharq al-Awsat also alleged that then-Minister Salam exploited the Insurance Control Commission’s funds to finance his office and personal expenses, with monthly expenses reaching $70,000.

On April 8, Karim was arrested in this case. On May 29, Judge Hajjar decided to release Salam on bail after questioning him in the abovementioned case and lifted a travel ban he had imposed against him earlier in March.

According to local media, a new case was brought against Salam days later over suspicions of misusing public funds and signing illegal deals, including a contract with a Malaysian company allegedly worth $640,000 to provide technical training to insurance companies for a two-week period, according to Asharq al-Awsat.

Local media, citing official documents, reported that Salam allegedly used the Ministry of Economy’s funds during his tenure for his own personal expenses, including personal travel, car rentals and other activities that are unrelated to his position at the ministry.

Salam, who has not commented on the accusations, posted a video of a local report on his X account on Tuesday, which claims that the minister reformed the Insurance Control Commission and all the so-called suspicious contracts were legally concluded.

تحول اداري وهيكلي بلجنة الرقابة على شركات التأمين، يقابله هجوم سياسي متصاعد.
بين شهادات رسمية تؤكد سلامة المسار، وأسئلة تطرح حول التوقيت والدوافع… pic.twitter.com/gHLyQ3M8q1

— Amin Salam – أمين سلام (@Amin_G_Salam) June 10, 2025

Background: Salam was appointed to the Ministry of Economy in September 2021 under the government of former Prime Minister Najib Mikati, during a period when Lebanon was grappling with its worst economic and financial crisis in decades.

After the term of former President Michel Aoun ended in October 2022 without a successor, Mikati’s government continued to manage the country in a caretaker capacity. Salam remained in his position until February this year, when the government of Prime Minister Nawaf Salam was formed.

Lebanon’s economy collapsed in October 2019 amid massive nationwide protests against the ruling political class, widely blamed for years of corruption and mismanagement.

Lebanese banks subsequently imposed informal capital controls and severely limited cash withdrawals amid skyrocketing prices of goods, regular power shortages, and lack of medicine and fuel. Meanwhile, the local currency has lost more than 90% of its value since 2019, plunging more than half the Lebanese population into poverty.

Salam is an international corporate lawyer and economist with a degree in international and comparative law from George Washington University and a law degree from the Sagesse University in Lebanon.

Salam — based out of Washington at the time — worked as senior managing director at Ankura Global Consulting Group and was also vice president of the National US-Arab Chamber of Commerce.

Know more: Salam’s arrest marks the first of a high-ranking official since former central bank governor Riyad Salameh was detained last September over his involvement in the embezzlement of more than $40 million from the central bank during his 30-year tenure.

Salameh, who headed the central bank from 1993 until 2023, was the subject of several probes at home and abroad for his alleged role in the embezzlement of public funds, money laundering, forgery, illicit enrichment and tax evasion, among other financial crimes.

He came under heightened scrutiny after Lebanon’s financial collapse, with many blaming him and his policies for the crisis and the collapse of the local currency.