Who will control the portfolios of Public Works, Health, and Energy in Lebanon?
July 11, 2021, 3:45 am

Who will control the portfolios of Public Works, Health, and Energy in Lebanon?

Sami Moubayed

It has been nine months since Lebanese President Michel Aoun tasked ex-Prime Minister Saad al-Hariri with forming a cabinet to replace that of Hassan Diab. No government is anywhere in sight, however, due to non-stop bickering between Hariri and Gibran Basil, Aoun’s son-in-law, political heir, and president of the Free Patriotic Movement (FPM). The two men agree on practically nothing, starting with the size of the government onto who gets to name its Christian ministers. Hariri wanted a small cabinet of 18 ministers whereas Aoun and Basil have pushed for an expanded one of 20-24, where they get to name all nine Christian ministers and expand the share of their allies in the Hezbollah-led March 8 Coalition.

Traditional wants: The Ministries of Interior and Defense.

Throughout the Arab World the most highly sought portfolios are usually Defense and Interior. One controls the army and the other controls the security services, notoriously known as the mukhabarat in Arabic. They are responsible for keeping order and quelling dissent, much needed in Lebanon today as the country slips into chaos and lawlessness, topped with a steady economic meltdown. On several occasions over the past year and a half, the army has been called in to break-up anti-government demonstrations, while security services have been charged with arresting, harassing, and silencing dissidents. So sensitive are both portfolios that former Iraqi Prime Minister Adel Abdul Mehdi had to form his government without them back in 2018, awaiting consensus between his country’s main political parties. In Lebanon’s case the Ministry of Interior has traditionally been held by a Sunni Muslim, traditionally affiliated with Saad al-Hariri’s Future Party, while the Ministry of Defense has been occupied by a Christian from Aoun’s FPM.

This time, however, Gibran Basil made claim to the Ministry of Interior, saying that it ought to be “liberated” from hegemony of the Future Party, demanding that he gets to name the new minister and that he be selected from the Maronite Christian community. That he added, was in accordance with an initiative made by French President Emmanuel Macron last September, which called for rotation of sovereignty posts so that no single party or sect should have exclusive control over any specific ministry. Hariri agreed to name a Christian figure to the Ministry of Interior, but one affiliated to his Future Party and not to the Aounists, which Aoun and Basil have flatly rejected. Hariri says that he would only abandon the Ministry of Interior if Aoun relinquished his claim to the Ministry of Foreign Affairs, which has been held by a member of FPM for over a decade. Once again, Aoun and Basil said no, demanding the ministries of interior, defense, and foreign affairs. Parliament Speaker Nabih Berri recently suggested giving the Ministry of Foreign Affairs to a third party from the Druze community, so that it doesn’t fall in the hands of either the Maronites or the Sunnis. That too has been rejected by President Aoun.

The Ministry of Health: A new arsenal for Hezbollah

But that’s not the main reason why the two sides have been unable to form a government. This time the two sides are also quarrelling over three portfolios that were often neglected in previous cabinets, considered symbolic, ceremonial, and rather un-important, being Health, Public Works, and Energy.

A demonstrator waves a national flag during a protest in Tyre, Lebanon. (File photo: Reuters)

A demonstrator waves a national flag during a protest in Tyre, Lebanon. (File photo: Reuters)

The Ministry of Health, currently occupied by Hezbollah affiliate Hamad Hasan, is at the forefront of the battle against Covid-19. Hezbollah wanted to make permanent claim to the Ministry, which gives it a new arsenal that is currently more powerful than its stockpile of rockets, being vaccines, ventilators, ICU beds, and hospitals. Such services might help polish its image before the wider Lebanese public, but they are much needed to appease the Shiite community, from which Hezbollah derives its entire powerbase. Last summer, Hezbollah media ran a video of the minister Hamad Hasan raised shoulder-high by residents of Baalbak, as evidence at how successful the party has been at combating Covid-19. It is peddling a success story, regardless of how real it is, in order to keep the Ministry for good, just like its allies in the Amal Movement have permanent control over the Ministry of Finance. Before Hezbollah got the Ministry of Health in 2019 it had been held by the Lebanese Forces (2016-2019), and before that, by a member of the Progressive Socialist Party (2013-2016). Neither showed any desire to keep it, tossing it from one part to another, and nor did Hezbollah until Covid-19 swept the country in 2020. Hariri is reluctant about giving them another turn at the Health Ministry, however, claiming that this might put the entire health sector at the risk of sanctions by the United States.

Public Works: A potential goldmine

The Ministry of Public Works is another high on everybody’s wish-list because this is where the money will go when/if the reconstruction of Beirut begins, one year after the port explosion killed over 200 people and tore down half the city. According to estimates the cost of reconstruction stands at a whopping $15 million USD; money that Lebanon does not have and needs to attract through donor states, wealthy Lebanese emigres, and international agencies. If any of them start contributing money, it would have to go through the Ministry of Public Works, explaining why Hezbollah has also made claim to the portfolio currently in the hands of Michel Najjar, a protégé of the Marada Movement. Once again, Hariri refused to bend, arguing that nobody would invest in the rebuilding of Beirut if there is the slightest chance of that money reaching Hezbollah coffers. An aid package of $11 billion USD had been promised to Lebanon by donor states meeting in France back in 2018 but it was frozen pending administrative and political reforms, which include clipping the wings of Hezbollah. Hariri was unable to deliver and nor was his successor, the incumbent Hassan Diab, who actually owes his existence at the Grand Sertail to Hezbollah. Last summer Diab began talks with the IMF for a $9-11 billion USD loan but that too was put on hold by the resignation of his cabinet in August, due to the port explosion.

The Ministry of Energy “wanted” by Hezbollah

The third portfolio that is up-for-grabs is the Ministry of Energy. Lebanese waters are believed to be rich with gas, but drilling was suspended due to disagreement with Israel over the country’s Executive Economic Zone (EEZ). The first offshore exploration well was drilled and completed in May 2020, where traces of gas were found, confirming the presence of hydrocarbon reserves. If completed, this could potentially solve all of Lebanon’s problems, rescuing a country that has traditionally relied on banking services and tourism to survive. Both sectors are currently dead, however, explaining why gas is so important. Yet again, and just like with the abovementioned portfolios, Hariri is reluctant to concede, although this time, competing with Hezbollah is not the Future Party but their allies in Gibran Bassil’s FPM, who also want the Ministry of Energy.

BY: Sami Moubayed

Russia Develops Parachute to make Service Dogs Fly Out of Plane What If Iran Prefers to Live Peacefully? "Part 22"

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.