In order to finance the cost of services paid in fresh dollars, the Board of Directors of the Traffic Management Authority decided to introduce additional fees on the services provided to the public, with a maximum increase of 36 times. The authority based this decision on an opinion from the Court of Accounts, which allows it to do so, stating that "the Traffic Management Authority is an independent entity and must finance itself, while legal fees are so low that they risk closure if not adjusted, endangering the principle of public service continuity."
According to the regulations issued by the authority, the fees have been set as follows: a driving license: 1,800,000 Lira, a vehicle registration license: 1,400,000 Lira, two registration plates: 1,800,000 Lira, an electronic sticker: 1,000,000 Lira, driving license (renewal, replacement for loss or damage): 1,800,000 Lira, international driving license: 1,500,000 Lira, and a driving license application for abroad: 500,000 Lira.
This decision follows months of halting any issuance of driving licenses or registration plates due to disputes regarding the implementation of the contract signed between the authority and the contracted company "Encrypt." While the company demanded payment of its invoices in dollars according to the terms of the contract, it became evident that the authority could not pay them due to the lack of financial appropriations in its budget.
These disputes were only partially addressed when Minister of Interior Bassam Mawlawi requested the Court of Accounts for an advisory opinion on the contract with the company, resulting in a ruling that the costs incurred by the company should be calculated based on governmental decision number 13 issued in 2022, which differentiates between the supply costs paid in fresh dollars and the operational costs paid in Lebanese Lira in contracts signed between the public sector and private companies. However, this opinion did not take into account the terms of the contract signed between the company and the authority, which states that the company cannot issue any invoices related to operations, supply, programming, or other internal services but only issues invoices based on the quantity of final products provided to the public, meaning that the invoice must correspond with the issuance of a specific number of driving licenses or vehicle books or plates and electronic stickers.
So far, this aspect of the problem between the company and the authority has not been resolved, with the acting chairman Judge Marwan Abboud insisting that the company submit its invoices based on the equation provided in governmental decision number 13, while the company insists that this contradicts the contract. As a result, the company's outstanding dues for the years 2020 and 2021, valued at approximately 60 billion Lira (the company claims it's worth 8 million dollars) according to the unadjusted prices corresponding to exchange rate developments, remain unresolved, awaiting legal remedy.
However, the issue is not only about resolving the financial dispute related to past invoices, as the authority's decision to introduce additional fees paid by the consumer only secures funding for the authority's continued operation without addressing the invoicing, payment mechanisms, and the relationship between the two parties.
According to "Al-Akhbar" newspaper, this makes the opening of the vehicle registration department to the public unstable, in addition to narrowing the available options between the authority and the company: either the company agrees to receive its dues according to decision number 13 and risks violating the contract terms, noting that other companies are ready to replace it, or the matter is taken to the State Consultative Council to determine what applies to invoices issued based on the contract regarding supply compensated according to the market price or the officially adopted dollar rate and what applies to the invoices issued concerning operational costs paid in Lira.
The authority had previously informed the company that it wanted goods sufficient for about six months according to the quantity stipulated in their contract, and indeed, "Al-Nafea" received goods sufficient to facilitate operations for two weeks. Notably, for more than four years, tens of thousands of transactions have accumulated at the vehicle registration department without the issuance of any driving licenses, vehicle books, electronic stickers, or plates. Additionally, the company withdrew its staff from the department for two full months in August and September before returning them to work in early October.
