The US Treasury Department announced today, Tuesday, that the United States has imposed new sanctions on two Lebanese individuals under an executive order focusing on supporting democratic processes and institutions in Lebanon. The announcement indicated that two entities based in Lebanon and one based in the UAE were targeted. The sanctions were imposed on the owners of "ZR Group Holding," brothers Raymond Rahme and Teddy Rahme, for using their companies, under their control in Lebanon and abroad, to win several government contracts through obscure public tenders.
Brian E., the Treasury Department's Under Secretary for Terrorism and Financial Intelligence, stated in a press release that "today's action reaffirms the United States' commitment to highlighting corrupt practices that continue to unjustly impact the Lebanese people." He added, "Now more than ever, the Lebanese government must implement the economic and political reforms it urgently needs."
The Treasury's Office of Foreign Assets Control accused the brothers of using their wealth, power, and influence to engage in corrupt practices that undermine the rule of law in Lebanon, thus undercutting democratic processes at the expense of the Lebanese people. The statement continued: "While the Lebanese people face significant economic distress, a severe energy crisis, and unprecedented political dysfunction, the Rahme brothers used their business empire and political connections to enrich themselves."
In detail, the Rahme brothers obtained a contract in 2017 to import contaminated oil for Electricité du Liban, on behalf of the Ministry of Energy and Water, and mixed it with other types of oil, leading to significant damage to power generation plants. The Treasury noted that through their UAE-based company, ZR Energy DMCC, which also faced sanctions today, they "fraudulently blended their hazardous fuel product with other types of fuel."
The statement from the Office of Foreign Assets Control said, "While the Rahme brothers amassed wealth from this scheme, the Lebanese people suffered further degradation of the country's infrastructure, leading to increased malfunctions of power plants across Lebanon and a rise in daily power outages."
It is noteworthy that "ZR Group Holding" operates in the fields of energy, telecommunications, and aviation. The brothers used it to secure the necessary funding to establish ZR Energy DMCC and leveraged its influence among Lebanese financial institutions to open letters of credit for the company.
