The newspaper "Al-Liwaa" reported: The Council of Ministers has returned the "capital control" issue to the Parliament, this time through a draft law objected to by the ministers of the "Amal" Movement regarding the powers of the committee responsible for withdrawal authorizations. Deputy Prime Minister Saadeh Al-Shami revealed that the Council of Ministers approved the proposed "capital control" law in its latest form, which was sent to the Council yesterday, with minor amendments that did not affect its essence. The only amendment made during the session concerned the composition of the proposed committee. Instead of including the Prime Minister, his Deputy, the Minister of Economy, the Minister of Finance, and the Governor of the Central Bank of Lebanon, the committee will now consist of the Governor of the Central Bank, the Minister of Finance, two economic experts, and a judge of grade 18 or above.
The Council of Ministers convened at 4 PM yesterday at the Presidential Palace under the chairmanship of President Michel Aoun, with the attendance of Prime Minister Najib Mikati and the ministers. The capital control draft law was approved with slight amendments concerning the reshaping of the special committee. This law had previously been amended in parliamentary committees based on some ministers' observations.
According to the revisions, the composition of the special committee for reviewing withdrawal requests was altered, and according to Al-Shami's announcement after the session: it now consists of the Governor of the Central Bank, the Minister of Finance, two economic experts, and a judge of grade 18 and above. This means that the membership of the Prime Minister, his Deputy, and the Minister of Economy has been removed. When asked why the committee's powers were not clarified, and why it was granted the authority to decide on withdrawals while depositors are unable to withdraw fresh dollars, Al-Shami responded: "The committee’s powers are defined," noting that a legal amendment based on the proposal of the Minister of Justice was made, which has taken into account the objections so that there is a legal course to challenge any decision made by the committee, whether at the Central Bank or in the courts.
Ministers from the Shia duo of Amal Movement and Hezbollah, along with the Minister of Tourism, objected to the committee's powers. Minister of Public Works Ali Hamiyeh rejected the current form of the capital control law because it did not stipulate some crucial points related to depositors. He pointed out that the law does not show how depositors' rights would be preserved and lacks a timeline for the details of recovering funds. He also noted that the law is not connected to a recovery plan, highlighting his concern that the monthly withdrawal amount was limited to only $1000 and requested that his observations be considered.
After the discussions, the law was settled with legal amendments including: that the Central Council of the Central Bank refers violations and infractions regarding the law to the Public Attorney who will undertake the legal proceedings. Furthermore, the law's timeline was shortened from five years to two years, and students pursuing their studies abroad were added to the list of exceptions permitting them to withdraw and transfer their money abroad.
The Council did not approve the borrowing agreement between the Lebanese government and the Central Bank after the ministers from the Shia duo rejected it, due to a mechanism that requires every installment due to the government to be presented in the Council of Ministers and obtaining the bank's approval to lend, which raises questions about the legality of the central bank’s depletion of mandatory reserves.
Consequently, the project was referred to the Ministry of Justice's Advisory and Legal Affairs Committee to seek its opinion on whether it should be transferred to the Parliament or approved by decree in the Council of Ministers. Minister of Displaced Persons Issam Sharafeddine requested to postpone the discussion of his working paper dealing with the state of the banking sector to the next session, due to the pressing discussion of the borrowing agreements, capital control, and food security and agricultural issues, which took two hours and a quarter.
During the session, Aoun presented the outcomes of his visit to the Vatican and Rome, stating: “I requested the help of His Holiness the Pope in solving the issue of Syrian refugees by providing assistance to Syrians in their homeland instead of helping them in Lebanon,” and reiterated the invitation from His Holiness to visit Lebanon. He concluded by stating that "it is unacceptable to speak of sole decision-making when any issue is raised, as every initiative will ultimately be presented to the Council of Ministers for discussion and then to the Parliament if necessary; hence, no one can monopolize any matter."
Mikati remarked: “We face significant responsibilities to stop the ongoing collapse in the country and to address as many files as possible while putting other files on the path to resolution. Therefore, my emphatic call yesterday was about the necessity of halting the quarrels. Our goal is to protect the people and revive the economy, while some direct their campaigns against the government for electoral purposes, leaving the nation to bear the cost. Hence, my call to everyone to take responsibility, and we await the completion of the agreement with the International Monetary Fund."
Concerning food security, Minister of Economy Amin Salam stated after the conclusion of the Cabinet meeting: “The allegations of wheat shortages are not true; the numbers at the ministry are reassuring up till today, and we are continuing to bring in ships. Importation is ongoing as usual, and we are trying to secure additional reserves.” He added: “Sugar is available, and oils are available for at least two months, but there are fears that prices may rise afterward.” He stated: “We are working with the World Bank on a food security project, and we have reached an advanced phase. It is a $150 million project for food security, focusing primarily on wheat, which will ensure supplies for 6 to 7 months ahead, aiming to maintain a continuous flow and iron out the mechanism for wheat importation and enhance the agricultural sector."
Thus, with what was described as minor amendments, the Cabinet approved the capital control draft law and referred it to the Parliament amidst objections from the ministers of the Shia duo, the Marada Movement's Johnny Al-Qarm, and Minister of Displaced Persons Issam Sharafeddine. Meanwhile, Minister of Tourism Walid Nassar confirmed that he did not reserve any objections but noted that the effectiveness of capital control is no longer what it used to be.
Now, the matter rests with the Parliament, and it was mentioned that there were technical amendments made to the project by President Mikati and legal changes by the Minister of Justice. The modifications affected the committee's presidency, as it is no longer chaired by Mikati, and the committee's membership has been altered, excluding the Deputy Prime Minister’s position, Saadeh Al-Shami, and the Minister of Economy, to now include the Minister of Finance, the Governor of the Central Bank, two economic experts, and a judge of grade 18 and above. Deputy Prime Minister Saadeh Al-Shami explained the key points of the capital control project, stating that the version held by the Parliament was inaccurate.
Discussions also covered dollar withdrawals. The Minister of Justice pointed out after the session that among noteworthy legal aspects addressed in the amendment were those related to the committee's powers or its operational mechanism under a Cabinet decision that issues executive laws. It was understood that the infractions related to the project would be referred to the Public Attorney, who would implement the necessary legal actions. Regarding the borrowing agreement between the Lebanese government and the Central Bank, ministers from the Shia duo objected to it, and it was postponed until the opinion of the Legislative and Legal Affairs Committee is obtained.
Finance Minister Youssef Khalil confirmed, in response to a question about the item relating to due payments to the World Bank and auditing offices, that all debts would be paid. It was reported that an amount of $8 million was requested for borrowing for debts owed to auditing offices, while an additional $13.5 million was requested by the Minister of Health for essential medicines.
Ministers sought to understand the financial status of the Central Bank, including Minister of the Amal Movement Mohammed Mortada, and Minister of Displaced Persons has requested that what he had asked to be discussed be postponed, especially regarding: 1. Investing state assets rather than selling or privatizing them; 2. Converting deposits for those who wish into shares in banks; 3. Selling 49% to Arab banks; 4. Selling failed banks to large Arab banks. The goals include: - Reviving Lebanese banks. - Restoring confidence in the Lebanese banking sector. - Preserving depositors' funds.
The ideas proposed today in the Cabinet include: 1. Investing state assets rather than selling or privatizing them. 2. Converting deposits for those who wish into shares in banks. 3. Selling 49% to Arab banks. 4. Selling failed banks to large Arab banks. The goals include: - Reviving Lebanese banks. - Restoring confidence in the Lebanese banking sector. - Preserving depositors' funds. He noted that he requested the postponement for the next session due to the pressing discussion on initial items related to the borrowing agreements, capital control, and issues of food security and agriculture that lasted for two hours and a quarter.
It was noted that the Minister of Education raised the topic of appointing deans of the Lebanese University, where the President stated that an understanding had been reached that appointments would take place immediately after the university president was appointed, but this has not happened. The Prime Minister indicated that this would be presented next week, and the Deputy Prime Minister emphasized adopting competence in appointments. The President addressed the Minister of Education, asking him: "You said that there were parties that did not approve; can you name those who obstructed?" However, the minister did not respond.
Furthermore, it was reported that the Minister of Tourism criticized the use of embassy platforms for promoting projects and slandering personalities including the President and the Prime Minister, stating that it is unacceptable to exploit platforms to win votes. Additionally, it was noted that the minimum wage has become two million lira.
In the matter of the health dump in Jdea, it was reported that protection was requested from municipalities after security agencies refused that. Minister Nassar stated: "We have approved the capital control draft law and sent it to the legislative council, but we must ask any deputy intending to run whether they are against or in favor of the capital control law." He added: "Personally, I am not convinced by its form, and our ambition wasn't to have it approved two years ago."
**Central Loans**
In a parallel line, the Governor of the Central Bank, Riad Salameh, chaired a meeting of the Central Council of the Central Bank, during which the issue of lending the state in foreign currencies, prioritizing the electricity and medicine sectors, was discussed. After the meeting, Salameh announced that the council approved the extension of the implementation of Circular No. 161 until the end of next April, subject to renewal.
**International Monetary Fund Mission**
Meanwhile, the mission of the International Monetary Fund, headed by Ernesto Rigo Ramirez, commenced its tasks in Lebanon, visiting President Aoun, where they discussed the stages that negotiations with the Lebanese government have reached, and the vision that the fund has to assist in overcoming the crisis Lebanon is experiencing. President Aoun was briefed by Ramirez about the outcomes of ongoing communications with the Lebanese government regarding the financial and economic recovery plan.
According to official information, the delegation observed progress in the negotiation process that could lead to a preliminary signing of a memorandum of understanding before the final contract is signed. The delegation requested commitment from the Presidents of the Republic, the Parliament, and the Council of Ministers, to proceed towards completing the required reforms for the full plan, particularly the approval of the “capital control” law, making amendments to the banking secrecy law, and restructuring the financial and banking sector, including the Central Bank, to meet governance standards. A source following this file clarified that the mission will last for two weeks. Financial observers fear that political tug-of-war and discrepancies may jeopardize the agreement unless there is a "political will" to ensure its execution, especially since the official approval of the fund's program requires prior legislations and reforms in application before the approval of the requested funding package.
**Race Against International Changes**
Amid attempts by the government to contain risks and pave the way for elections to be held within 45 days, informed political sources express concerns about ongoing regional and international event changes and their possible repercussions on Lebanon, given the interconnectedness of these events and changes. The sources pointed out two significant events that have occurred in recent months, which cannot be ignored or underestimated: the Russian war on Ukraine and its ramifications on the Russian military presence in Syria, and whether this presence would change if the war expands, forcing Moscow to withdraw or reduce its military presence to focus on the war in Ukraine, and consequently who would replace it; Syrian regime forces, the Iranian Revolutionary Guard, or others, and the extent of the impact of this change in Lebanon, and who stands to benefit from it.
The more notable development, according to these sources, is the meeting that brought together the foreign ministers of Egypt, the UAE, Bahrain, Morocco, and Israel with the US Secretary of State Tony Blinken in the Negev desert recently. The main agenda of this meeting focused on how to confront Iran during the next phase, indicating the birth of a new anti-Iran axis in the region, which could have implications and repercussions, especially given that it was met with several operations against Israelis in the suburbs of Tel Aviv, resulting in numerous casualties. The sources justify their concern about the impact on Lebanon due to such meetings and changes to confront Iran and escalate situations due to the presence of Hezbollah, considered one of Iran’s arms in the region. Particularly since this regime has not ceased to maneuver with Hezbollah—either to send messages or respond militarily—in limited operations or otherwise, which could lead to tensions and escalation that might turn into military confrontations with unforeseen consequences.
**15 Lists Officially Recorded in the Interior Ministry**
On the parliamentary front, the process of registering electoral lists in the Interior Ministry concluded yesterday with 15 lists across all electoral districts, and the registration process is set to resume today within official hours until Monday, April 4, or until midnight, when the registration ends according to the law. The following lists have been registered: "Al-Wafa Lil Akkar" - North First (Akkar); "Heidi Beirut" - Beirut Second; "With You to the End" - Kesrouan Jbeil; "Zahle of Sovereignty" - Bekaa First (Zahle); "The Better Tomorrow" - Bekaa Second; "We Elect for Change" - South First; "Metn Freedom" - North Metn; "Our North" - North Third; "Hope and Loyalty" - South Second; "Hope and Loyalty" - South Third; "Sovereign Independent" - Bekaa First (Zahle); "Moderation is Our Strength" - South First; "Beirut Needs a Heart" - Beirut Second; "Lebanon of Sovereignty" - Beirut First; "Popular Will" - North Second.
The number of candidates who withdrew from the electoral race by midnight yesterday rose to 41, bringing the final number of candidates for the upcoming parliamentary elections on May 15 to 1002, after 1043 had registered before the closure of applications. Noteworthy withdrawals included Sarkis Sarkis, alongside the withdrawal of 7 women. In terms of new lists: "Al-Liwaa" learned that in the Bekaa Gharbi-Rachaya district, a list was finalized for the alliance of MP Mohammad Qarawi and MP Wael Abu Faour, without reaching an agreement with the Lebanese Forces who Qarawi firmly rejected any alliance or collaboration with. The official papers are being prepared for its registration in the Interior Ministry after agreeing on the name of the list. The list also includes Qarawi (Sunni seat) and Abu Faour (Druze seat): Islamic Group candidate Ali Abu Yassin for the second Sunni seat, Jihad Zarzor for the Maronite seat, Ghassan Skaf for the Orthodox seat, and Abbas Aidi for the Shiite seat.
It was reported that the Lebanese Forces began seeking to form another list, but they encountered issues finding acceptable candidates or candidates willing to collaborate with them, especially among the Sunni community. Consequently, they are considering forming their list in Bekaa Gharbi with their primary candidate Danny Khater in alliance with independents who will be disclosed step by step.
In the Baabda constituency, the agreement between the Progressive Socialist Party, the Lebanese Forces, and independents culminated in a complete list comprising: Pierre Bou Assi, Kamil Dory Shmayoun, and Dr. Alexander Karam for the three Maronite seats, Hadi Abu al-Hassan for the Druze seat, and Said Alama and Saad Sleem for the two Shiite seats.
The list of the Islamic Charitable Projects Association (Ahbash) in Beirut Second is nearing completion. It includes: for the six Sunni seats: MP Dr. Adnan Al-Tripoli, Dr. Ahmad Dabbag, Mohammad Nihad Ardoulmli, Khaled Hanqir, lawyer Walid Aytani, and Mohammad Bilal Al-Arab. For one of the two Shiite seats: Jihad Hamoud, likely to remain with one Shiite candidate. For the Druze seat: Iyad Al-Banna. Negotiations are ongoing for the finalization of candidates for the Orthodox and Evangelical seats only.
From the new lists, the following were officially presented: the "Al-Wafa Lil Akkar" list (backed by President Mikati), the civil society list in the North Third district “Our North”; the “Heidi Beirut” list in Beirut Second; the “Metn Freedom” list in the Metn district; the “Zahle of Sovereignty” list and the “Sovereign Independent” list in Bekaa First; the “The Better Tomorrow” list in Bekaa Gharbi led by former Minister Hassan Murad; the “Moderation is Our Strength” list in South First for MP Ibrahim Azar; the “Lebanon of Sovereignty” list in Beirut First; and the “With You to the End” list in the Kesrouan-Jbeil district backed by the Lebanese Forces.
**What Happened on the Road to the Palace?**
After months and weeks of procrastination and lack of seriousness regarding the demands of the Lebanese University, professors, including tenured, contracted by the hour, and trainers, protested on the road leading to the Presidential Palace to pressure the Council of Ministers to address the university's issues, such as appointing deans, integrating tenured staff into the civil service, and securing contracts, as well as the budget, which has deteriorated to the extent that it has become impossible to run university affairs.
The professors attempted to block the road to the Baabda Palace, but security forces prevented them. According to circulating information, the professors requested that the security personnel block the road for two minutes to deliver their message inside the Council of Ministers’ hall; however, the officer assigned informed them that the road to the palace cannot be blocked even for one minute. This led to a verbal confrontation between the security personnel and university professors.
Minister of Education and Higher Education Abbas Halabi condemned what happened with the professors in a conversation with journalists and expressed his utmost solidarity with them. Immediately after the protest concluded, the executive council of the Lebanese University’s tenure professors held an emergency meeting and issued a statement condemning the unprecedented assault on professors and university employees by security forces during a peaceful protest demanding their legitimate rights. They called upon President Aoun and the leadership of the security forces to conduct an immediate investigation into the unfortunate events and to provide a public apology for the unfathomable aggression by their personnel.
They invited all components of higher education in Lebanon, trade unions of the free professions in Beirut and the north, the General Labor Union, and various bodies, associations, and media outlets to a solidarity meeting with the Lebanese University and its community, scheduled for Monday, April 4, 2022, at 11 AM in the conference hall at the Lebanese University Presidency Building (Museum).
**Health Update**
Health officials announced the recording of 364 new COVID-19 cases and 5 deaths in the last 24 hours, raising the total number of confirmed laboratory cases to 1,091,777.
