US delegation urges Lebanon to speed up government formation

Lebanese parliament members attend the first session of the newly-elected assembly at its headquarters in the capital Beirut on May 31, 2022. (AFP)
Lebanese parliament members attend the first session of the newly-elected assembly at its headquarters in the capital Beirut on May 31, 2022. (AFP)
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Updated 19 July 2022
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US delegation urges Lebanon to speed up government formation

US delegation urges Lebanon to speed up government formation
  • Public sector workers strike for better pay, conditions
  • Proposal to divide Beirut municipality sparks criticism

BEIRUT: A delegation from the American Task Force for Lebanon has stressed the importance of “establishing a social economic program before it is too late.”

The call came after the delegation — accompanied by US ambassador to Lebanon Dorothy Shea — held talks with several Lebanese officials on Monday.

Edward Gabriel, head of the ATFL, said: “Time is moving quickly, and the government must expedite laws and policies, carry out the required reforms, and take the necessary steps to meet the needs of citizens to push forward negotiations with the International Monetary Fund. We need a partner, and that partner is the government, which has to act quickly to achieve what is required from it.”

The US provided aid worth more than $700 million to Lebanon last year, he added, and President Joe Biden “did not forget about Lebanon” during his Middle East visit.

FASTFACT

MP Ibrahim Kanaan, chair of the finance and budget committee, announced the adoption of a law amending banking secrecy to prevent tax evasion, combat corruption, financing terrorism, and illicit enrichment.

Biden mentioned several issues that affected Lebanon and stressed the integrity of the Lebanese territories during his meetings.

The US call came as judicial assistants decided to join a strike of public sector employees on Monday, causing courts in Lebanon to grind to a halt.

Public sector employees have been striking for about a month demanding that salaries be increased and for transportation allowances to be raised.

The judicial assistants said they had stopped working permanently and would not make any exceptions, be they for urgent cases or public prosecutions, and would no longer issue notices on behalf of departments and courts.

Joseph Talj, an official from the judicial assistants’ committees, said: “Ever since the crisis began in 2019, judicial assistants have been seeing how unfortunate people’s lives have become and are now suffering just like them in making ends meet. They can no longer provide food for their families, proper education, or health care.

“How can we work in palaces of justice where equity, equality, justice, and fairness don’t exist? Either we work to live a decent life with our children, or we stay home and die of starvation and diseases.”

The same demand prompted retired members of the armed forces to stage a sit-in on Monday morning in front of the Baalbek branch of Banque du Liban, preventing employees from entering.

They stressed that salary increases needed to include all employees, especially military personnel, in service and retired.

The Lebanese pound has lost 95 percent of its value since it started depreciating in 2019.

The minimum wage is equivalent to $23 according to the black market exchange rate of LBP29,500. Before the financial collapse, it amounted to $444.

With the gradual lifting of subsidies on fuel and medicines, and the inability of health and social security institutions to cover hospitalization for public sector employees, the workers went on strike because they were unable to afford a minimum standard of living.

Speaking on behalf of the retired armed forces personnel, Imad Awada said: “More protests will be organized in different regions until the decision to amend judges’ salaries based on the LBP8,000/USD rate is withdrawn, or until all public employees are included in the decision, especially military personnel in service and retirement, in addition to improving benefits.”

The ongoing strike paralyzes most of the state’s official departments, especially the Ministry of Finance and the real estate departments.

Those striking urged the ministerial committee tasked with managing public facilities to hold a meeting headed by the caretaker PM and PM-designate Najib Mikati to follow up on this issue.

Parliamentary committees have been convening to approve bills that fall within the framework of reforms demanded by the IMF in light of the ongoing government impasse since mid-May to present them in a legislative session to be determined later.

MP Ibrahim Kanaan, chair of the finance and budget committee, announced the adoption of a law amending banking secrecy to prevent tax evasion, combat corruption, financing terrorism, and illicit enrichment.

The committee has not yet finished studying the 2022 budget which, according to Kanaan, required “the government to present its study on the unification of the exchange rate, especially since taxes, fees, and salaries in the state are still calculated based on the rate of 1,507 LBP/USD, with the exception of judges’ salaries.”

There is also discontent over calls to divide the municipality of Beirut into one council for the Christian part of the capital and one for the rest.

MPs from the Free Patriotic Movement have proposed a bill on this subject. MPs from the Lebanese Forces Party and the Kataeb Party argued that the proposal served to “treat all Beirut neighborhoods equally.”

But there were strong reactions to the idea.

Lebanon’s Grand Mufti Sheikh Abdel Latif Derian said: “This cannot happen. This would bring us back to the East/West Beirut division. This is unacceptable and threatens the Islamic-Christian coexistence that we have preserved and will preserve at all costs. A government needs to be formed as soon as possible, especially since the collapse and paralysis pervade state institutions.”

Derian stressed that officials needed to assume their responsibilities and form a rescue government as nothing else would pave the way for the election of a new president, implementing reforms, and fighting corruption.

Beirut MP Ibrahim Mneimneh also commented on the division proposal.

“Beirut's size and role require an elected local authority with the ability to rule and make decisions, not sectarian divided municipalities that seek to give priority to narrow interests over the city's. Populist proposals do not address the crisis, but may create a larger one.”