The newspaper "Al-Jumhuriya" reported that Prime Minister Najib Mikati nearly resigned yesterday but hesitated due to the dire situation. He realized that those pushing for his resignation aim to evade the elections by bringing down the government. Consequently, the "Capital Control" proposal was withdrawn from the Parliament and will be discussed in the Cabinet today, where it is expected to return with a revised legal draft along with the necessary amendments and the opinion of the International Monetary Fund. This is in anticipation of another legislative session called by Speaker Nabih Berri, especially since this law is urgently needed to finalize agreements with the IMF and other international financial institutions.
It was noted that Berri acknowledged Mikati's irritation at the beginning of the session regarding criticisms aimed at his government. He did not agree to Mikati's request to turn the session into a discussion ending with a vote of no confidence, stating it was a legislative session. Thus, Berri also recognized the serious implications of overthrowing the government under these circumstances, leading to neither accepting a discussion session nor Mikati resigning. Mikati merely sounded the alarm to everyone, warning them of the risks of their current path.
Mikati told "Al-Jumhuriya": "They do not want elections and consider that their last chance to escape from them is to overthrow the government. Perhaps they might achieve this if their desire is met, but I will not be swayed to resign; there will be no resignation nor will there be anyone resigning." Therefore, he sounded the alarm to all, stating that matters cannot be handled this way and that he would not accept what is being done because it is at the expense of the nation and the Lebanese people and will not lead to any result.
He expressed astonishment at some linking the budget proposal with the recovery plan, declaring that the budget is a constitutional obligation the government must fulfill on time, while the recovery plan is separate and will be submitted independently to the Council. He observed that some were practicing populism and mixing issues at the expense of both the government and the presidency, which is unacceptable and cannot continue in this manner, stating that the theatrics of statements would not deceive him.
As for the Capital Control proposal, it essentially originated from the House of Representatives and they requested modifications along with the IMF’s opinion. "We brought them these matters, and now their argument is that it should be returned to the Council as a legal proposal. Well, we will do this in the Council of Ministers tomorrow (today) and send it back to them," he said.
Mikati spoke after the parliamentary session, saying, "Based on the external indicators we receive and the foreign tours I undertake, we perceive great support for Lebanon and efforts to assist it. However, inside the country, we see chaos and efforts by some to exploit all matters in electoral campaigns, sometimes from a team opposing the presidency and other times from a team opposing the government and attacking it. The biggest loser from these campaigns is the country.”
In response to a question, Mikati stated, "One of the government's main tasks today is to conduct the parliamentary elections, and I cannot be swayed to resign so that it would be a pretext to disrupt the elections; I will not be the cause of delaying the elections, which is why I will not resign."
Later, government sources circulated a clarification regarding the circumstances that compelled Mikati to request converting the legislative session into a general discussion on confidence in the government. They remarked: "Since Mikati accepted the governmental task, he has been determined to work with the government team based on two priorities: limiting the collapse by putting Lebanon on a negotiating track with the IMF and other relevant international bodies, and conducting the parliamentary elections. Based on this, the government gained confidence and began its work. However, for some time, the Prime Minister noticed that things began to take another turn characterized by the return of political disputes whenever any reform step was suggested by all sides, especially those who declared support for the government, alongside the evident delay in implementing the necessary reforms, a fundamental requirement of the international parties that expressed their support for Lebanon and warned of the repercussions of delaying the approval of reforms."
The sources added, "The external meetings conducted by the Prime Minister to mobilize support for Lebanon in all areas demonstrated a strong international and Arab will to support Lebanon conditional on the Lebanese fulfilling the required reforms. However, the emerging performance in handling the issues indicates that the priority for many is electoral exploitation, while the Prime Minister's priority is to address the issues at hand and implement the reforms."
The governmental sources emphasized that what Mikati raised in the parliamentary session was a wake-up call for all parties regarding the risks of what could happen if the necessary treatments continue to be dealt with as they are. They confirmed the Prime Minister's insistence on holding a general discussion session for the government where all files would be publicly discussed, all positions and orientations presented, and then a confidence vote on the government to determine the next steps, as matters cannot continue as they are.
Political Maneuvering
Additionally, parliamentary sources told "Al-Jumhuriya" that Mikati's request during the general session to raise confidence in his government was more of a political maneuver than a serious stance. They stressed that Mikati knows, as he himself declared, that the government will remain to conduct the parliamentary elections and that it is forbidden to dissolve it either by voting out its confidence or by resignation. Therefore, no one would bear the responsibility of bringing it down at this timing.
These sources indicated that Mikati wanted to corner some blocs in response to the call to raise confidence, as done by MP George Adwan from the "Lebanese Forces" bloc protesting the Capital Control format. It was pointed out that he left the Council having "recharged" his governmental credibility after Speaker Nabih Berri quickly withdrew Mikati's surprise proposal to vote on confidence from consideration.
The same sources denied that the principle of Capital Control fell after yesterday's general session, noting that the government would prepare a comprehensive legal proposal and send it to the Council. They expected it to be approved before the parliamentary elections, stating that without Capital Control, there will be no rescue, and without it, financial support from the IMF and other willing countries will not come, as these entities fear that money will enter Lebanon and then leave if there is no Capital Control to protect it.
Council of Ministers
Meanwhile, attention is directed toward the Cabinet session taking place at Baabda Palace at 4 PM today, with an agenda of 29 items, the most important of which is the Capital Control bill and a presentation by the Minister of Displaced Persons regarding his rescue vision for the banking sector. It has been learned that Minister Issam Sharafeddine has prepared a study that he will distribute to the ministers during the session based on three main points:
1. A proposal to allow converting deposits or part of them into shares in the bank.
2. A proposal to merge Lebanese banks with Arab banks wanting to invest, thereby selling 49% or more to Arab or foreign banks to rescue the banking sector and save depositors' funds, thereby restoring "confidence" in the banking sector and rescuing banks from the risk of bankruptcy while keeping deposits intact, with details and controls handled by a committee of the government and the banking association.
3. A proposal for a national company to invest state assets, the details of which he will present during the session.
Sharafeddine stated to "Al-Jumhuriya": "We must consider the state, the central bank, banks, and depositors as being in the same boat and having a mutual responsibility to lead the country to a safe harbor. I hope we reach a formula that imposes itself as a fait accompli and we do not link this file with other fundamental and important files that fall into the quagmire of deferral and remain unresolved, in order not to reach a dead end in our negotiations with the IMF."
"Al-Jumhuriya" learned that these three ideas were sent by the Minister of Displaced Persons to the President of the Banking Association, Salim Safeer, and he was contacted to gauge his opinion. He replied that they were complicated and didn’t give positive signals regarding their acceptance, requesting a meeting to discuss them. Sharafeddine responded that he had done what he needed to with the Banking Association and would continue his mission with the government.
Capital Control
Additionally, the Council of Ministers will discuss a new draft of the "Capital Control" law instead of the one that failed in the joint session of the Administrative, Justice, and Finance Committees of the Parliament last Monday. This draft was withdrawn from the agenda of the legislative session that took place yesterday at the UNESCO Palace at the request of the parliamentary committees that asked the government to adopt the proposal and present it as a draft law to the Parliament since Deputy Prime Minister Dr. Saadeh Al-Shami was the one who put it forward along with his team assigned to negotiate with the IMF.
"Al-Jumhuriya" learned that the draft project includes 13 articles, including:
1. Definitions covering 18 terms for banks, approved intermediaries, deposit accounts, bank accounts, clients, the Sayrafa platform, the Central Bank, the Banking Regulatory Authority, residents, non-residents, foreign currencies, the national currency, the movement of capital flows across borders, foreign exchange operations, current account payments and transfers, and new funds.
2. Establishment of a special committee responsible for issuing the regulatory provisions for the resolution.
3. Cross-border money transfers and current account payments.
4. Foreign exchange operations.
5. Withdrawals.
6. Local transfers and payments.
7. Repatriation of funds derived from exports.
8. Opening new bank accounts, along with provisions related to general provisions and penalties (criminal, administrative, and financial), with the committee required to submit a quarterly report to Parliament on the results of applying the law.
Informed sources predicted that the Cabinet would approve this version today.
No Diplomatic Movements
On the eve of the session, government sources denied through "Al-Jumhuriya" the validity of information circulating about the possibility of introducing a new batch of transfers and diplomatic formations prepared by Foreign Minister Abdullah Bou Habib for today's session outside the agenda. These sources stated: It is true that Bou Habib prepared an urgent and necessary batch of transfers to fill some vacant positions in several embassies abroad, but this matter is not being discussed in today's session, neither within nor outside the agenda.
IMF Delegation
On another note, informed references disclosed to "Al-Jumhuriya" that President Michel Aoun will meet prior to the Cabinet session today with a delegation from the IMF to present the efforts made and assess what has been achieved so far in the ongoing negotiations with the fund.
Legislative Session
The Parliament yesterday approved a law granting 10,000 dollars annually for student dollars at a rate of 8,000 Lebanese Lira. It also agreed to open an exceptional additional credit in the general budget for the benefit of the budgets of the Ministry of Interior and Municipalities and the Ministry of Foreign Affairs to cover electoral expenses. Furthermore, it approved the proposal to extend the application of Article 2 of Law No. 237/2021 (suspension of legal, judicial, and contractual deadlines). It also extended the terms of municipalities and local councils until May 31, 2023.
The Council also approved a law exempting some building licenses from fees, which included objection by MP Estephan Dweihy to the voting method, thus requiring a roll-call vote, which was endorsed by 44 votes. The most prominent opponents were MPs from the "Free Patriotic Movement," "Lebanese Forces," and "Marada," while MPs from "Future," "Hezbollah," and "Amal Movement" voted in favor, and MP Jamil Al-Sayyed abstained from voting.
The Council ratified the proposal to grant compensation and pensions to the families of the victims of the Tleil explosion (in Akkar) and to enable those injured with disabilities to benefit from social security services.
Alvarez Has Not Stopped
On another front, in response to reports yesterday that the forensic auditing firm "Alvarez & Marsal" had suspended its work in Lebanon pending the collection of 40% of the contract's value between them and the state, estimated at 1.1 million US dollars, a responsible source in the Ministry of Finance confirmed to "Al-Jumhuriya" that this narrative is inaccurate, considering it "media promotion" aimed at achieving nonexistent journalistic leads.
The source pointed out that the ministry responsible for implementing the contract with the company is striving to meet its demands as per the signed contract, indicating that although financial processes and consultancy may take some time, the company would fully receive its rights. The source noted that the firm has only received what it requested from the Central Bank without demanding any additional information thus far.
