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| ...The Ministry of Finance as the title of the basic differences that reflect the complexities of sectarian and political balances in Lebanon. |
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Controlling the "Mother of Ministries" .. Nabih Berri's exposed game in Lebanon
By Sherbaro's Secrets – Beirut
Alhurra
January 29, 2025
(See translation in Arabic section)
Sydney-Middle East Times Int'l: With the President-designate to form the government in Lebanon, Judge Nawaf Salam, starting the formation consultations, the file of distributing ministerial portfolios has returned to the heart of the political debate, taking the Ministry of Finance as the title of the basic differences that reflect the complexities of sectarian and political balances in Lebanon.
The "Shiite duo" insists on keeping the Ministry of Finance, a portfolio that it has held its seal on since 2014, but this time, the Speaker of Parliament, Nabih Berri, confirmed that this demand is based on the allocation of the portfolio to the Shiite sect in the deliberations of the Taif Agreement, and he said in a statement to the "Asas Media" website, "My obtaining the finance portfolio is not a consecration of the tripartite or quadruplet. It was decided in Taif and was not merely discussed, and therefore I am sticking to it."
However, a review of the formation of governments after the Taif Agreement indicates that the Ministry of Finance was circulated among the various sects until 2014, when it became the exclusive preserve of the Shiite sect.
The leader of the Amal Movement, the Speaker of Parliament, insists on nominating Yassin Jaber to take over the Ministry of Finance. In this context, Berri told Alhurra that “the problem in forming the government is not with the Shiite duo, and others are using us as an excuse,†adding: “Our choice for the Ministry of Finance is Yassin Jaber, and the campaign against him is unjustified.â€
The insistence of the “Shiite duo†on clinging to the Ministry of Finance raises questions about the motives behind this clinging, and whether the matter goes beyond the executive role played by the ministry, to form part of a broader strategy aimed at protecting political and financial interests, and ensuring control over sensitive files within the Lebanese state.
Beyond political influence?
Since the Ministry of Finance came under the control of the “Shiite duo†in 2014, this ministerial portfolio has been subjected to domestic and international accusations due to what was considered an exploitation of its role to serve private agendas at the expense of the public interest.
It all started with the handover of the portfolio to Speaker Berri’s assistant, Ali Hassan Khalil, who held the position until the resignation of Saad Hariri’s government following the October 17, 2019 uprising, when the US Treasury imposed sanctions on him in 2020, accusing him of “cooperating with Hezbollah and being involved in corruption cases.â€
With the Prime Minister-designate in Lebanon, Judge Nawaf Salam, beginning consultations to form the government, the issue of distributing ministerial portfolios returned to the heart of the political debate, taking the Ministry of Finance as the title of the fundamental disagreements that reflect the complexities of sectarian and political balances in Lebanon.
The US Treasury statement said that Khalil “worked to transfer funds from government ministries to institutions linked to Hezbollah in a way that avoided the imposition of US sanctions. In addition, he used his position as Minister of Finance to try to ease US financial restrictions on Hezbollah so that the group would face less difficulty in transferring funds.â€
According to the US Treasury, Khalil also “used his position of influence to exempt a Hezbollah member from paying most of the taxes due on electronics imported into Lebanon, in exchange for paying a portion of that to support Hezbollah. As of late 2019, as finance minister, Khalil refused to sign checks payable to government suppliers in an attempt to obtain commissions. He demanded that a percentage of contracts be paid directly to him.†Despite the controversial record of the Ministry of Finance since it was assigned to the “Shiite duo,†the duo justifies its adherence to it by saying that the Taif Agreement allocated it to the Shiite sect. However, according to journalist and economic researcher Mounir Younes, this claim goes beyond the constitutional path, stressing that “the minutes of the Taif Agreement did not include any allocation of the Ministry of Finance to this sect.†Younes’s words are confirmed by former minister and MP Boutros Harb, who participated in drafting the Taif Accords. He explained in a statement published on January 24 that the agreement did not stipulate that the Ministry of Finance be given to any particular sect, but rather emphasized the principle of rotation among sects in ministerial portfolios, “so that no ministry is the exclusive domain of a particular sect, and no ministry is prohibited for a particular sect.†Younes told Alhurra that “the duo considers the Ministry of Finance a means to secure actual participation in the executive authority through what is known as the third signature on decrees, in addition to the signatures of the President of the Republic and the Prime Minister.â€
Political researcher and writer Makram Rabah also believes, in an interview with Alhurra, that “President Berri’s insistence on the Ministry of Finance reflects his efforts to establish the concept of tripartism, exploiting the ministry’s position to enhance the influence of the Shiite sect in the executive authority.†Political researcher Nidal Al-Sabaa added to this, in an interview with Al-Hurra website, that the "Shiite duo" links its adherence to this portfolio to its political losses in terms of the presidency of the republic and the government, explaining that "the duo considers the Ministry of Finance a basic guarantee for the sect, after Hezbollah transformed from a player imposing governments to a party seeking to preserve its gains."
Embezzlement and Corruption
The "Shiite duo's" adherence to the Ministry of Finance is not only related to protecting the sect as it promotes, but it seems to be linked to protecting sensitive files, as the Minister of Finance enjoys prominent powers, most notably proposing the names of the Governor of the Central Bank of Lebanon and his deputies to the Council of Ministers, according to Article 18 of the Monetary and Credit Law.
This role explains Berri's refusal to replace the Governor of the Central Bank of Lebanon, Riad Salameh, during his term, despite his accusations in corruption cases locally and internationally, and his being held largely responsible for the banking and financial crisis sweeping the country.
Due to his accusation of embezzlement and corruption, the Public Prosecutor, Judge Jamal Al-Hajjar, issued a decision to arrest Salameh in September 2024. This was preceded by European countries and the United States opening investigations into Salameh’s activities, accusing him of involvement in “crimes of embezzlement of public funds, money laundering, and corruption.†These parties consider Salameh one of the main officials responsible for the financial and economic collapse in Lebanon.
In this context, Younes believes that the Ministry of Finance bears a large part of the responsibility for the financial crisis in Lebanon, explaining that "its role is no less important than the role of the Central Bank of Lebanon, as it is the guardian of it."
He adds, "The Ministry of Finance is responsible for appointing the government commissioner to the Central Bank of Lebanon and auditing its annual budget, but it did not carry out its duties, which makes it a partner in the crisis."
On the contrary, the strategic expert in banking and economic risks, Dr. Muhammad Fahili, points out that the company "Alvarez & Marsal", which is tasked with conducting the forensic audit of the accounts of the Central Bank of Lebanon, "did not request information from the Ministry of Finance, but rather limited its request to the Governor of the Central Bank of Lebanon, to conduct and complete the forensic audit."
Fahili stresses, in an interview with Alhurra, that "banking secrecy is one of the main obstacles to combating corruption in Lebanon."
He points out that "the recent amendments to the Banking Secrecy Law were not sufficient to achieve the required transparency," citing the International Monetary Fund report issued in the first quarter of 2023, which stressed the need to make additional amendments to transform the law into an effective tool to combat corruption.
The head of the Lebanese Forces party, Samir Geagea, confirmed that "the focal point of all the corruption that the country has witnessed over the past 15 years is the Ministry of Finance and the Central Bank of Lebanon."
He added, in an interview with MTV on January 23, that "the Minister of Finance could be Shiite, but he should have nothing to do with the existing structure."
Involvement and Obstruction
The importance of the Ministry of Finance also lies in the fact that its seal can be used to obstruct vital decisions, such as obstructing judicial, security and administrative appointments, as Rabah explains.
This is what the current minister in the caretaker government, Youssef Khalil, did, as Younes points out, "his refusal to sign the judicial formations in 2022 that were aimed at facilitating the investigation into the Beirut port explosion, which obstructed the course of the investigations."
Former Minister Ali Hassan Khalil had been charged with involvement in the Beirut port explosion, as the investigating judge in the case, Tarek Bitar, issued an arrest warrant in absentia against him in October 2021, after he failed to attend his interrogation session.
Al-Bitar charged Ali Hassan Khalil with murder, assault, arson and vandalism, all with intent. The investigating judge also ordered each armed force officer to execute the warrant and immediately transfer Khalil to the relevant prison department.
However, the judicial proceedings were suspended at the time, after Al-Bitar received a request to withdraw his involvement in the case.
The Ministry of Finance also plays a pivotal role in managing government spending, according to Fahili, who points out that “the signature of the Minister of Finance is necessary for the disbursement of financial appropriations, even if they are included in the general budget. This authority gives the minister the ability to obstruct the implementation of decisions by the executive authority.â€
He adds, “The signature of the Minister of Finance is the third pillar of the executive authority after the President of the Republic, who is a Maronite Christian, and the Prime Minister, who is a Sunni Muslim.â€
Despite this, Fahili believes that the insistence of the “Shiite duo†on retaining the Ministry of Finance “is linked to the sectarian balances within the executive authority.â€
He says, "The presidency of the republic is the Maronite share, and the prime ministership is the Sunni share, while the Shiites seek to ensure a strong and influential voice in the executive authority through the Ministry of Finance. This is more about a political dimension than any other considerations."
The importance of the Ministry of Finance, as Younes points out, lies in the "spending" dimension, explaining that this ministry "controls the appropriations allocated to ministries and government departments, as invoices issued by contractors and suppliers pass through it. This influence gives it a broad ability to control spending mechanisms."
Rabah highlights an additional dimension to Berri's insistence on this ministry, which is related to its position in any future reconstruction process.
He says, "The Ministry of Finance gives Berri an important card in managing the funds that may come to support reconstruction," but he points out that the ministry "is governed by conditions and reforms imposed by the World Bank and the International Monetary Fund."
Rabah adds that "any future reforms in the Ministry of Finance will be directly subject to the requirements of international donor agencies," considering that "Berri's insistence on the ministry reflects an attempt to find a way to escape the challenges facing the Shiite duo."
It is noteworthy that the head of the Foreign Relations Department of the Lebanese Forces Party, former Minister Richard Kouyoumjian, summarized the importance of the Ministry of Finance in a post on the X platform on January 23, in which he indicated that this ministry provides "the ability to control, blackmail, obstruct, and hinder the work of the government and ministries. The minister determines the priorities of spending: when? for whom? and in what currency?" Kouyoumjian explained that the Minister of Finance has the ability to "obstruct judicial, security, and administrative appointments and formations by refraining from signing decrees, obstructing criminal investigations into corruption files, interfering in the budgets of other ministries, in addition to proposing the appointment of the Governor of the Central Bank of Lebanon, and enjoying the final say in the financial recovery plan."
He considered that the Shiite duo's insistence on this ministry comes from motives of "illusions of partisan control and influence, falsely manifested in the name of the sect and its position in power and the system, which is originally guaranteed by the constitution and the charter."
Fortified Reserves
Younes describes the Ministry of Finance as the "mother of ministries" due to its importance, stressing that this ministry is run in Lebanon far from reformist goals.
He explains that "this ministry was supposed to lead tax reforms and combat tax and customs evasion, but it did not, in light of the Shiite duo's control over it."
Younes adds that the absence of reforms has made the ministry "the subject of great suspicions of corruption," noting that "the entire Lebanese state suffers from corruption, but the Ministry of Finance is surrounded by the greatest suspicions due to the existence of fortified departments that are considered as untouchable reserves, so reforming it, especially in the tax and customs fields, must be an absolute priority."
Whatever the case, the duo’s insistence on this portfolio, and the nomination of former minister and MP Yassin Jaber to assume it, contradicts, as Al-Sabaa says, “the Saudi vision calling for the formation of a government of specialists far from political quotas.â€
He asserts that “Saudi Arabia is exerting pressure on Prime Minister-designate Nawaf Salam to expedite the formation of a government that meets the aspirations of the Lebanese people, instead of distributing ministerial portfolios as political rewards.â€
Al-Sabaa points out that Salam faces two bitter choices, as “responding to the demands of the Shiite duo may allow him to form a government and gain the confidence of parliament, but it may lead to Saudi and Gulf resentment that will negatively impact foreign support for Lebanon.â€
Al-Sabaa cites statements by Emirati businessman Khalaf Al-Habtoor, who recently announced his reluctance to invest in Lebanon, “which reflects the growing Gulf resentment.â€
In contrast, Salam’s commitment to Saudi advice means, as Sabaa says, “forming a government of specialists far from quotas, but it could create an internal clash that would prevent the government from obtaining 65 votes to gain confidence, despite Salam obtaining 85 votes when he was assigned.â€
At a time when Lebanon is facing security, economic and social challenges, adherence to sectarian quotas remains an indication of the continuation of the old approach that is pushing the country towards further deterioration, in the absence of any real will to get out of this cycle.
Asrar Shabaro |
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