Lebanon

Title: Al-Liwaa: Reforms Caught in Political Conflicts from the Council to the Government!

Title: Al-Liwaa: Reforms Caught in Political Conflicts from the Council to the Government!

The newspaper "Al-Liwaa" wrote: Less than half a century in three years: the onset of the civil war in Lebanon on April 13, 1975, and the commemoration of this war on April 13, 2022, with the bitterness of the experience, the tragedy, the results, and the disasters, as well as the determination to reject any new "playing with fire" in this country, which is moving from recession to collapse, deepening the collapse to the point of decision-making paralysis. All the resources of prosperous Lebanon, including the foreign exchange, are now in the hands of foreign powers, financial institutions, or are waiting at the roadside for appointments and assistance, whether to provide healthcare, flour, or even to conduct parliamentary elections, where the funds earmarked abroad are not sufficient to cover the expenses of expatriates' voting.

**Banking Secrecy Clause Ignites Ministerial Conflict**

In this context, the Council of Ministers is holding its weekly session at Baabda Palace at eleven o'clock this morning, with 29 items on the agenda. Ministerial sources informed "Al-Liwaa" that the inclusion of the item related to amending some provisions of the banking secrecy law falls within the framework of achieving the necessary structural reforms according to the International Monetary Fund's demands to restore growth and provide a conducive environment for economic activity by making necessary amendments to some existing laws in a way that ensures the enhancement of governance and transparency, removing obstacles to achieving the desired growth. It is understood that this includes provisions for the banking secrecy law, particularly amending and completing legislation related to banks and establishing a mixed institution to guarantee deposits as well as provisions of the tax procedures law, and that if approved, they will be referred to the House of Representatives. It is also understood that a number of ministers will inquire about the nature of the deposit guarantee institution's step. The project related to this item was distributed to ministers yesterday, which may give the impression that it could be postponed due to time constraints, as it consists of 22 pages of full text, unless the ministers indicate they have reviewed it.

**Political Efforts on Appointments and Diplomatic Formations**

"Al-Liwaa" learned that the subject of appointments and diplomatic formations will not be discussed in the session "because it is not yet ripe and needs two meetings between Minister Bou Habib and Presidents Michel Aoun and Najib Mikati to present the final formula to the Prime Minister first, and then to the President, and perhaps the matter will be concluded next week," according to official sources. Political sources noted that in light of the failure to reach a formula to approve the capital control bill in the joint committees yesterday and the ongoing discourse regarding a new banking secrecy law, which involves lifting it and imposing controls, this means that the reform items may be delayed unless a miracle happens, which negatively impacts negotiations with the IMF, which conditions reforms to proceed with concluding the agreement with Lebanon.

**Concerns Over Parliamentary Elections Delays**

In another obstructive context, political sources pointed out the emergence of several concerning factors indicating premeditated intentions to disrupt the parliamentary elections, despite all official and political positions confirming that this deadline will be met on May 15. First, the lack of financial allocations designated for organizing the voting process for expatriates abroad, which costs approximately four and a half million US dollars, while the state has only allocated three million dollars, according to Foreign Minister Abdullah Bou Habib. Secondly, the ongoing threats of a complete strike by members of the Lebanese diplomatic corps both domestically and abroad. Thirdly, the difficulty in securing electricity supply for all polling stations across Lebanon up to now due to logistical complications and high financial costs, despite all assurances from officials otherwise. Fourthly, the threat of some judges and public sector employees refusing to join the designated tasks and locations for supervising and managing the entire electoral process, in protest against the failure to meet their demands for increased financial compensation amid the decline in salaries and rising transportation costs.

**Political Stalemate on Election Scheduling**

Sources point out that no political or party official has openly dared to refuse to hold the parliamentary elections so far, and everyone publicly insists on their occurrence on time. However, implicitly, it seems that everyone wishes to avoid the elections, but they cannot openly express this for fear of inciting public opinion domestically and provoking international scrutiny, which encourages and insists on holding the election process at its constitutional deadline, warning of sanctions against anyone who disrupts it.

**Saudi Ambassador Meetings**

Officially, Saudi Ambassador Walid Bukhari made an initial stop in his official visits following his return. He met with President Michel Aoun at Baabda Palace yesterday noon. During the meeting, the ambassador conveyed congratulatory messages to President Aoun on the occasion of Easter, and discussed Lebanese-Saudi relations and the necessity of developing and activating them in all fields. The Saudi ambassador affirmed the Kingdom's support for the Lebanese people during these difficult circumstances. He informed the President about the working mechanism of the Saudi-French joint fund designated for humanitarian aid and achieving stability and development in Lebanon. Palace sources described the meeting as cordial and frank, noting that it addressed Lebanon's conditions in general as well as the regional situation, with particular focus on the mechanisms of Saudi-French assistance to Lebanon.

In governmental meetings, Prime Minister Najib Mikati received the Ambassador of Kuwait, Abdul Aal Al-Qanaei, who expressed the political leadership and Foreign Minister's wishes for the best of relations with Lebanon and a brighter future for the brotherly country.

**Legislative Discussions on Capital Control**

Meanwhile, in the parliament, the joint committees of parliament ended without approving the capital control law, and a new session will be held next Wednesday. Amendments were made to the first article confirming the protection of deposits. Following the session, Vice President of the Council Elie Ferzli stated: "Discussions in the joint committees concerning capital control resulted in the approval of some articles, and the session for the approval of the remaining articles was adjourned for further discussion to ten-thirty next Tuesday." He added that the discussions were thorough, focusing primarily on the constitutional rights of depositors and their funds in Lebanese banks.

**Protests Against Capital Control Proposal**

The depositor association organized a protest yesterday in front of the Parliament building, "rejecting the proposal of the capital control law," under the slogan "We cannot accept that our money be stolen and then a law is enacted to protect the thief," according to the Chairman of the Association Alaa Khourshid. The association warned in a statement that "anyone who dares to touch the depositors' money will be a legitimate target for every depositor, as the actual confrontation has not yet begun."

**US State Department Report on Lebanon**

The US State Department, in its "Human Rights" report, addressed Lebanon, citing credible reports of "serious political interference in the judicial apparatus and judicial affairs, imposing severe restrictions on freedom of expression and media, including violence, threats of violence or unjustified arrests or prosecutions against journalists, censorship, and the presence of laws criminalizing defamation, and severe restrictions on internet freedom, and the forced return of refugees to countries where they face threats to their lives or freedom."

**COVID-19 Statistics**

The Ministry of Health reported 188 new COVID-19 infections, raising the cumulative number to 1,095,099 confirmed cases since February 21, 2020, with three new deaths, increasing the total number of fatalities to 20,352.

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