Lebanon

Title: "A Game of 'Finger-Pointing' Among Leaderships... Mikati Threatens Resignation but Retracts"

Title:

The newspaper "Al-Liwaa" wrote: The game of "finger-pointing" between public authorities is based on three foundations and three or more institutions. Regardless of the repercussions, within red lines that sometimes turn green or gray, as hours go by before candidates withdraw from the elections after showcasing their offerings and then deciding to reclaim 30 million Lebanese pounds before the end of this month, especially since they have no chances of getting onto lists or harvesting any preferential votes in an unprecedented electoral process regarding its implications for the country's resources and local and regional political forces.

Although President Najib Mikati recorded the first indication regarding the fate of his government between April and May 15, when he demanded the legislative session be turned into a general discussion ending with a vote of confidence in his government due to his anger over the rejection of the capital control project in the parliamentary committees, and thus the fate of the electoral process as a whole, he quickly backtracked his decision not to resign to avoid bearing the responsibility for aborting the parliamentary elections for which additional funds were allocated by the parliament to ensure the printing of passports and cover expatriate expenses at a time when the process of listing or publicly announcing candidate lists is collapsing in terms of alliances and coalitions across provinces and among sects and political parties.

The parliamentary session was surprising, according to the deputies and observers, especially what President Mikati said at the beginning of the session, which lacked the capital control project after its definitive rejection in parliamentary committees. The session that took place yesterday might be the last before this council unless any development necessitates another session before the set date for the parliamentary elections on May 15. This rendered yesterday's session quick and brief, made even shorter by the loss of quorum, which led President Nabih Berri to adjourn it.

While populist positions were present at the doors of the UNESCO Palace under its roof, high-profile and sharp discussions were absent from the atmosphere of the interventions. Nevertheless, there was a surprise from President Mikati, who requested from President Berri to turn the session into a general discussion on the vote of confidence in his government at the request of one of the deputies, which was rejected, and Berri justified his refusal by saying, "I’m not available for such matters." Legislative discussions were limited to approving 13 draft laws, the most notable of which was the decree related to the student dollar for students studying abroad for the year 2020-2021. Funding for expatriate parliamentary elections was also approved through a project to open an exceptional additional credit in the general budget for 2022. Additionally, the terms of municipal and elected councils were extended until 31/5/2023, as well as amendments to establish the Economic and Social Council, and provisions for protecting areas affected by the Beirut port explosion and providing compensations and pensions for the victims of the Tleil - Akkar blast.

The repeated urgent proposals were not brought up due to the adjournment of the session after the loss of quorum.

Informed sources justified the Prime Minister's request to the Speaker of the Council during the legislative session to put his government to a vote of confidence, except as a demonstration of discontent with the political forces over the re-introduction of the capital control proposal to the government, considering it a form of electoral populism when this proposal is central to the demands of the International Monetary Fund. However, the deputies' opinion and most people's views were that its presented form does not effectively meet depositors' demands to safeguard or retrieve what remains of their deposits in banks.

Nevertheless, governmental sources close to Mikati rebutted his stance by emphasizing that he “noticed things beginning to take another direction, exemplified by the return of political bickering whenever any reform step is proposed by all parties, especially those who declared support for the government," in addition to a clear delay in implementing the necessary reforms, a primary condition from international bodies that expressed support for Lebanon and warned of the repercussions of delaying reforms.

The sources added that the external meetings held by the Prime Minister aimed to rally support for Lebanon across all fields, reflecting a strong international and Arab willingness to support Lebanon conditional upon the Lebanese fulfilling the required reform steps. However, the emerging behavior in addressing these issues suggests that many prioritize electoral investments, while the Prime Minister’s priority is to address the issues at hand and implement reforms to set matters on the path to resolution.

The sources indicated that what Mikati raised in the parliamentary session is a wake-up call to all parties about the danger of what may happen if the handling of the required treatments continues in the current manner.

The governmental sources confirmed Mikati's insistence on holding a general discussion session during which all files would be presented publicly, and all positions and trends would be displayed, followed by a vote of confidence in the government to determine the implications, as matters cannot continue as they are.

Mikati expressed, in a statement outside the session, that resolving problems disparately is impossible, as the situation is not sound— the nation is paying the price. He criticized a faction opposing the term and another opposing the government.

He stated: The external indicators reaching us and the foreign tours I conduct show significant support for Lebanon and a willingness to assist it, while inside the country we see chaos and attempts by some to exploit everything for electoral campaigns, first from a faction opposing the term and then from another faction opposing and attacking the government. The biggest loser from these campaigns is the country. Instead of cooperating as a government and parliament to escape the crisis we are in, we see unwarranted attacks. Yesterday, I heard talk regarding the government and confidence vote, and I said why not, as long as our papers are open, and we are ready to display all that we have transparently and clarify the problems we are suffering from. If the parliament is prepared to cooperate with us, it's crucial because the country requires everyone’s efforts to unite.

Regarding the faction calling for a vote of confidence in the government, he remarked: You all heard the statements made yesterday.

As for the capital control file, he stated: This issue has been presented to the parliament for two months as a proposed law, and the parliament requested comments from the International Monetary Fund, which were incorporated into the proposal submitted to the parliament. They then requested that we refer it as a bill presented by the government, which is what will happen. We are ready for accountability for any action we take, while dismissing the idea of resigning to avoid being a reason for obstructing the elections, saying, "I will not be a reason to obstruct elections, and for this reason, I will not resign."

In any case, the capital control project is present at the Cabinet meeting, as its text was distributed to the ministers, comprising 14 articles.

The session lacked any resolutions addressing judicial, economic, or living conditions, pending the study of important items including the capital control law, food security matters, and a decree seeking to establish a cost of living allowance for employees and workers subject to labor law (Al-Liwaa published the most important items on its agenda yesterday). The Governor of the Central Bank, Riad Salameh, will not attend the session, as "Al-Liwaa" confirmed yesterday.

President Michel Aoun received Dr. Salim Safi, the head of the banks' association, and Antoine Habib, the chairman and CEO of the housing bank, yesterday.

The meeting addressed the financial and banking conditions in the country and the role of banks in the current phase.

Political sources informed "Al-Liwaa" that the call for the Governor of the Central Bank, Riad Salameh, to attend today’s cabinet session at Baabda Palace is not on the agenda.

Furthermore, "Al-Liwaa" learned that the association's president explained during his meeting with the president the banks’ conditions amid the lack of a serious and cohesive capital control system that safeguards depositors’ rights and ensures liquidity for banks when they face insolvency. It was reported that there had been an emphasis during the meeting on the necessity of restructuring banks and approving a financial recovery plan that encompasses several laws, including banking secrecy, currency, loans, capital control, and cash withdrawals. The Head of the Banks' Association also explained the relationship between banks and the judiciary, while he heard at Baabda Palace about the independence of its authority and what depositors are enduring. The meeting was marked by seriousness, explaining the struggles of banks and depositors and their relations with correspondent banks and the Central Bank, exploring the banking sector scientifically, with capital control requiring government approval before being sent coherently to the parliament.

"Al-Liwaa" learned that Mikati made extensive calls last night with official and political references and ministers to study the new legislative proposal of the capital control law for approval at today's cabinet meeting, coupled with the discussions that a delegation from the International Monetary Fund will conduct with senior officials and stakeholders for this purpose.

However, ministerial sources said that before the arrival of the draft and the study of the discussed items, in light of the parliamentary remarks, the fate of the project in its new form cannot be assured today.

Conversely, some ministerial sources reported that there are intentions among some ministers to present comments and various amendments on the project, which do not affect its content and basic components, but aim to improve it as much as possible to reduce the objections raised against it, in accordance with the expectations of the International Monetary Fund, to expedite the process of reaching an agreement with the Lebanese government to initiate the rescue operations from the current crisis.

The sources stressed that persisting in obstructing the approval of the project in today’s cabinet session will lead to negative repercussions and will certainly delay reaching a final agreement with the International Monetary Fund, consequently hindering government movements and efforts to address the multifaceted crisis facing Lebanon. This will also lead to political chaos that could further affect governmental operations and their effectiveness in addressing the problems faced by the Lebanese people.

The sources reflected that the outcries and campaigns from some deputies against the capital control project, with some taking high stands against it from the parliament door, serve only to attract voter attention towards them. However, this does not mean that these deputies do not implicitly support the project, knowing well the impossibility of halting or canceling it, yet aiming to absolve themselves of the responsibility of its approval.

Minister Shami announced that the delegation from the International Monetary Fund, headed by Ernesto Ramirez Rigo, has arrived in Beirut to hold what is described as pivotal talks, expecting the delegation to meet with Mikati tomorrow.

He expressed hope that within two weeks a preliminary agreement would be reached between Lebanon and the fund, stating that we are now in the final stretch to reach an agreement during this period.

**Daily Living, Judicial, and Banking Turmoil**

On the daily suffering front for citizens, as prices for a loaf of bread (14,000 pounds), meats, poultry, vegetables, and fuels have risen again, and with expectations that the electricity bill this month would reach astronomical figures due to the kilowatt price now being between 10,000 and 12,000 pounds, the government is completely absent from stopping or limiting this deterioration on the eve of the Ramadan month. Moreover, depositors are still struggling to retrieve their salaries and life savings from banks, and it has been reported that Minister of Justice Henry Khoury is not in the process of heading any banking judicial committee, and he is keen to deny any decision made during the last cabinet session to create such a committee. The minister also affirmed his rejection of the principle of meetings between judges and banking or political appointers based on the independence of the judiciary and judges.

**Elections: New Lists**

Regarding the parliamentary elections, as the deadline for withdrawing nominations ends tonight at midnight, the Ministry of Interior will keep its doors open until twelve o'clock at night. The number of electoral lists registered at the Ministry of Interior has reached 11.

Yesterday, the first list was registered to run in the parliamentary elections in Beirut second district under the name "Beirut Needs Heart," colored red, and comprising 11 members. The list, presided over by National Dialogue Party leader MP Fouad Makhzoumi, a candidate for the Sunni seat, includes Mazen Shabrou, Karim Shqbalo, Hassan Kashli, and Abdul Latif Aytani, and Nabil Najah for Sunni seats, along with Lina Hamdan and Alfat Sabaa for the two Shiite seats, Zina Munder for the Druze seat, Zina Majdalani for the Orthodox seat, and Omar Dabaghi for the evangelical seat.

Also, the "Vote for Change" list in the first district of the South, Sidon - Jezzine, was officially registered at the Ministry of Interior, which includes a coalition of MP Osama Saad, Dr. Abdul Rahman Al-Bazri, Pierre Farid Sarhal, and Dr. Charbel Massad, Chairman of the Board of the Jezzine Governmental Hospital and retired Brigadier General Jamil Dagher.

Progressive Socialist Party sources revealed to "Al-Liwaa" that the list for the Shouf - Aley district has come to fruition through an alliance between the party and the Lebanese Forces and some independents, and so far consists of the following names awaiting official registration:

In Shouf: Taymour Jumblatt and Marwan Hamadeh for the two Druze seats. George Adwan, Habouba Aoun, and Eli Qardahi (for three Maronite seats). Bilal Abdullah and Saad Al-Din Al-Khatib (for two Sunni seats), and Fadi Maalouf (for the Catholic seat).

In Aley: Akram Shheib (for one of the two Druze seats while the second seat remains vacant, said to be for MP Talal Arslan). Raji Al-Saad and Jawal Fadoul (for the two Maronite seats). Nazih Mata (Lebanese Forces - for the Orthodox seat).

After the formation of the PSP - Forces list, the Chairman of the Economic and Social Council, Charles Arabid, candidate for the Catholic seat in Shouf, announced his withdrawal from the parliamentary elections. Communication had already involved him joining the list.

Former MP Selim Karam also issued a statement announcing his decision to refrain from running, "wishing that I would retrieve the nomination fee since it was previously refundable, to give it to some needy people, but I was surprised that, despite being within the legal deadline, the amount is non-refundable."

While the lists for Beirut II remain unclear or not fully completed, except for the official list of Fouad Makhzoumi, Secretary-General of the "Future Movement" Ahmad Hariri tweeted in response to media publications: Words in the media for electoral marketing and driving wedges. There is no rebellion, no siege, no interference, nor any other issues. We are outside the elections, committed to the decision of President Saad Hariri... the rest is just talk.

In parliamentary electoral alliances, the Free Patriotic Movement and the Tashnag Party finalized their alliance in Beirut I, contrary to the situation in the Northern Metn.

**Health Update: 321 New COVID-19 Cases Reported**

In health news, the Ministry of Public Health announced in its daily report the registration of 321 new COVID-19 infections and 4 deaths in the last 24 hours, bringing the total confirmed cases to 1,091,413 since February 21, 2020.

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