More than 10 years later, in 1983, the Lebanese president appointed Tamraz as the head of IIC’s board of directors. But the line separating what belonged to IIC and what belonged to Tamraz soon became blurred. Over the next five years, Dib says Tamraz’ holdings in Lebanon grew to include the Milcher Group and a sizable stake in Middle East Airlines, the Beirut Harbor Corporation, Bank Al-Mashrek and many more.

“If it wasn’t for Tamraz’ connection to his friend President Amine Gemayel, he wouldn’t have dreamt of building an empire in Lebanon,” Dib says. “He had 5,000 employees on the payroll in Le-banon alone.”

The fall. But in 1986, Tamraz attracted the attention of the central bank, which suspected him of engaging in questionable investments in 1983 and 1984. One example was the purchase of Paris-based Banque Stern for about 100 million francs (about $100 million today). The bank’s name was then changed to Banque de Participation et de Placements (BPP), which was similar to that of another bank Tamraz had Al-Mashrek buy in Switzerland, Banca di Particepiazioni e Investimenti. They had no financial link, but the similarity in names made it seem, “as if BPP Paris was a subsidiary of BPP Switzerland, which it wasn’t,” says a source who requested anonymity out of fear of being targeted.

“Tamraz’ approach to business was not acceptable by many Lebanese, especially his instincts as a bargain hunter,”  Dib says, “buying off weak companies … soliciting political favor, and his heavy-handed style in board meetings.”

Eventually he collided with the newly-appointed governor of the Bank of Lebanon, Edmond Naim, and their feud became almost personal. The central bank demanded that a new management board be formed that was to include some of its own representatives. Tamraz reacted by calling another board meeting – allegedly the first he had ever convened – in a separate area of Beirut that was, at the time, split in two due to the civil war. Although the meeting was held with fewer than 8 percent of shareholders, Tamraz used it to form a new management board with himself at the helm. Two weeks later, however, he was forced to resign.

However, he still held Bank Al-Mashrek and continued to accept loans in the name of IIC. “Tamraz had his men at the head of the bank,” says our source. He had also allegedly attracted the attention of local warlords, satisfying “their appetite for cash,” says Dib. In 1988 he even ran for the Lebanese presidency. “He paid a lot of money to Lebanese and Syrian officials,” Dib says.

Later that year, Tamraz was kidnapped by a faction of the Christian Lebanese Forces militia, prompting him to eventually flee Lebanon in 1989. He was tortured while he was held, and had to pay a hefty ransom to secure his release. “This experience was too much for him,” Dib says, adding that Tamraz would eventually choose to settle in the US and receive citizenship.

By then, Tamraz’ companies had been folding one by one. First Al-Mashrek, then Credit Libanais in Lebanon, BPP Switzerland and BPP Paris. All because of reports that they were overstretched due to massive investments, prompting panicked depositors to retrieve their money. “Before Tamraz arrived, Al-Mashrek was in excellent condition,” says our source at the bank. In 1983, “it was the most efficient bank in Lebanon. Then, in just a few years, it was shut down by the central bank and disappeared. Tamraz bought banks and emptied them. There’s no other word to describe this than organized crime. ”

   Email This Post      Print This Post       Previous | Next