CHICAGO: US authorities have imposed sanctions on two businesses in Lebanon they say are under the control of Hezbollah and profit from corruption.

Sultan Khalifa As’ad, described as a Hezbollah official with close ties to both companies, was also placed on the sanctions list

“The United States is designating Arch Consulting and Meamar Construction for being owned, controlled or directed by Hezbollah, a US-designated foreign terrorist organization and Specially Designated Global Terrorist,” Secretary of State Michael Pompeo said in a statement issued on Thursday. “We are designating Sultan Khalifa As’ad for being a leader or an official of Hezbollah.”

The businesses are “two of many companies” that report to Hezbollah’s Executive Council, he said, and the organization “has used (them) to conceal its economic activity and evade US sanctions.”

He added: “Hezbollah collaborated with former Lebanese minister Yusuf Finyanus to ensure that Arch and Meamar won Lebanese government contracts worth millions of dollars, and the companies sent a portion of those funds to Hezbollah’s Executive Council. The United States designated Finyanus on Sept. 8 for abusing his cabinet position to provide material support to Hezbollah.”

******

READ MORE: Pompeo says Hezbollah weapons risk torpedoing French efforts in Lebanon

US welcomes Serbia’s move to designate Hezbollah terrorist organization

******

Finyanus was one of a number of former Lebanese ministers accused by Washington of providing material support to Hezbollah and blacklisted this month.

Arch Consulting was previously part of, and continues to provide funds to, Jihad Al-Bina, a prominent Hezbollah-run construction company that was sanctioned by the US in 2007, Pompeo said.

“Sultan Khalifa As’ad oversees Arch, Meamar and other Hezbollah companies in his position on Hezbollah’s Executive Council, where he helps manage the terrorist group’s municipal affairs,” he added.

“As’ad coordinates directly with Hashim Safi Al-Din, head of Hezbollah’s Executive Council, to guide the activities of Arch, Meamar and other Hezbollah companies.”

Pompeo said Lebanon’s political leaders have long exploited the lack of transparency in the nation’s economy to conceal their efforts to enrich themselves and their allies, while pretending to defend the rights of the people. Instead, they continue to divert lucrative contracts to political allies, despite long-running public protests against corruption.

“The Lebanese people have been demonstrating against corruption for nearly a year and demanding that their government address their basic needs after decades of political dysfunction,” Pompeo said.

“The Lebanese people deserve better, and the United States will continue to support their calls for an end to corruption and more responsive governance.”