Lebanese authorities on Wednesday ordered the arrest of former Economy Minister Amin Salam on suspicions of corruption, including embezzlement of public funds and the signing of shady contracts during his tenure, a senior judicial source told Asharq Al-Awsat.

The arrest was ordered by acting Public Prosecutor Judge Jamal al-Hajjar after Salam had undergone a three-hour interrogation by the Information Branch of the Internal Security Forces. 

The move came just two weeks after Judge al-Hajjar had questioned Salam at the Beirut Justice Palace, released him on a residency bond, lifted a travel ban against him, and returned his passport.

According to the judicial source, Salam was initially interrogated in connection with a complaint filed by the parliamentary Economy Committee. The complaint accused him of embezzlement, forgery, illicit enrichment, and extortion of insurance companies in exchange for contract renewals.

However, the prosecutor recently opened a new case against the former minister after receiving documents from the Economy Ministry suggesting Salam had signed contracts tainted by corruption and improper dealings. The source said these documents raised red flags and prompted the Public Prosecution Office to summon Salam for further questioning, which culminated in his arrest.

The investigation is expected to extend beyond the former minister, according to the source. Authorities are now looking into the possible involvement of members of Salam’s ministerial team. Judge al-Hajjar is preparing to transfer the case, along with the preliminary investigation files, to the Financial Public Prosecution, which is expected to file charges against Salam and others implicated in the alleged offenses.

The case will then be referred to Beirut’s First Investigative Judge, Bilal Halawi, who is expected to schedule a hearing in the coming days. Judge Halawi will determine whether to issue a formal arrest warrant, release Salam on bail, or let him go without conditions. The source noted that early indications suggest an arrest warrant is likely.

Even before leaving his post, Salam had already been facing serious legal issues. A previous investigation into a complaint by an insurance company led to the arrest and conviction of his advisor, Fadi Tamim, who was sentenced to a year in prison by the Criminal Court.

In a separate development, Karim Salam, the minister’s brother and former chief of staff, was arrested two months ago and remains in custody.

Salam’s arrest marks the first time since 2003 that a sitting or former Lebanese official has been detained in connection with a corruption case. The last such instance was the arrest of former Agriculture Minister Ali Abdullah, who was held for nearly seven months on charges of embezzlement and squandering public funds before being released.

The judicial source noted that Judge al-Hajjar’s decision to move quickly with the arrest suggests the prosecutor does not believe the alleged offenses stem solely from Salam’s official capacity as a minister. Instead, al-Hajjar appears to view the former minister as having exploited his public position to carry out criminal acts.

Two weeks ago, Salam was interrogated and released in connection with the initial complaint filed by the Economy Committee. That complaint also named his brother Karim, advisor Fadi Tamim, and Elie Abboud, the head of the Association of Accountants and Auditors, who was authorized to sign on the minister’s behalf.

The complaint accused them of embezzlement, extortion, misappropriation of public funds, and money laundering. Salam dismissed the accusations as politically motivated.

The Economy Committee’s complaint was based on what it described as "serious suspicions" that emerged in November 2023, after several insurance companies claimed they had been subjected to blackmail by Karim Salam.

One of the companies, Al-Mashreq Insurance, said it had been threatened with license revocation unless it paid large sums of money for technical studies mandated by the ministry. These studies were allegedly provided by a company owned by Fadi Tamim, with total payments reaching $300,000.

The complaint also accused Minister Salam of misusing funds from the Insurance Control Commission to cover personal and office-related expenses, with monthly expenditures reportedly amounting to $70,000.

Additionally, Salam is accused of signing a $640,000 contract with a Malaysian company to provide two weeks of technical training for insurance companies; a deal that prosecutors say was suspicious in both cost and execution.