Two anti-corruption organizations, Sherpa and the Collective of Victims of Fraudulent and Criminal Practices, have filed a complaint with French prosecutors against Lebanon’s caretaker Prime Minister Najib Mikati. The complaint accuses Mikati of money laundering, alleging that his wealth, estimated at $3.2 billion, has a fraudulent origin.
Who is Najib Mikati ?
Najib Mikati and his billionaire brother Taha founded Investcom in 1982, selling satellite phones at the height of Lebanon’s civil war. They expanded into Africa where they built cellphone towers in Ghana, Liberia and Benin, among other countries. In 2005, Investcom went public on the London Stock Exchange. In 2009, South Africa’s MTN bought the Mikatis’ stake for $3.6 billion.
Najib Mikati, originally from Tripoli, has been Lebanon’s Prime Minister since 2021. He is a telecom tycoon and former shareholder at Bank Audi, one of Lebanon’s largest banks. His appointment as prime minister drew criticism from some Lebanese circles, who see him as part of the financial-political elite that contributed to Lebanon’s economic crisis.
Complaint Against Mikati
The National Financial Prosecutor’s Office (PNF) in France received the complaint about this act of corruption. French lawyers William Bourdon and Vincent Brengarth, representing the plaintiffs, compiled evidence suggesting that Mikati’s wealth, invested in France and abroad, has a fraudulent origin. The complaint also alleges that the Mikati family’s properties across France and overseas are tied to offshore entities.
In response, the Mikati family denied the allegations, stating that they have always acted in strict compliance with the law. They emphasized that no member of their family or holding company has ever been found to be in violation of the law by any court of justice, in Lebanon or elsewhere. They expressed concern about the intentions behind the complaint and the potential damage to their reputation.
The complaint against Mikati comes at a time when Lebanon is facing severe economic challenges, described by the World Bank as a “deliberate” economic depression orchestrated by the country’s elite after decades of corruption. The complaint also highlights the ongoing efforts to combat corruption in Lebanon and the importance of holding public officials accountable for their actions.
What is Sherpa?
Sherpa is a French non-profit organization (NGO). The organization was founded in 1984 by George Soros and is backed by Open Society Foundations. Sherpa’s work is based on four pillars: strategic litigation, advocacy, legal research, and capacity-building activities.
Sherpa, a French NGO specialising in fighting economic crimes, and the French-Lebanese Collective of Victims of Fraudulent and Criminal Practices, are the same plaintiffs who initiated a complaint in 2021 against former Lebanon central bank governor Riad Salameh, accusing him of embezzling hundreds of millions.
The complaint against Riad Salameh led to the creation of an international investigative team involving Germany and Luxembourg, as well as the seizure of significant real estate assets in Europe. Salameh has denied any wrongdoing, claiming that his wealth was lawfully acquired through investments made before he was appointed as governor in 1993.
One key distinction between Salameh and Mikati is that Salameh has been a civil servant for three decades, while Mikati has made his fortune from various businesses. Mikati’s revenue is taxable under Lebanese law, and as a Lebanese tax resident, he is subject to a 10 per cent tax on his annual movable income generated worldwide.
Najib Mikati is also considered to close ally of Hezbollah.
In conclusion, the complaint against Najib Mikati underscores the growing instances of corruption in Lebanon and the need for transparency and accountability in public office. The outcome of the complaint will be closely watched as a test of the country’s commitment to combating corruption and upholding the rule of law.
