Waste piling up on the streets of Kesrouan. (Credit: Photo provided to L'Orient Today by a witness)
The scene has become so familiar that it no longer alarms many people, especially not the politicians: dumpsters overflowing, with garbage bags in the streets. This time, it is the districts of Metn and Kesrouan that are mainly affected. The reason: a strike by workers of the Ramco company, in charge of garbage collection in these two areas on behalf of the state, under a contract with the Council for Development and Reconstruction.
If the workers are on strike, said Walid Bou Saad, president of Ramco, it is because the transfer of a payment to the company has still not been made by Banque du Liban, despite the signature of the finance minister. The company, he said, is seriously in debt, and can no longer pay its workers. Beirut was spared a fresh trash crisis because the municipality paid three months in advance, but its bill will come due at the end of February.
“We have been waiting for the transfer of $1.7 million decided by the Finance Ministry to be released by BDL since last November," he told L'Orient-Le Jour. “In all, we have submitted 11 invoices to the state for a total of $20 million, which are unpaid to date, since the last effective transfer dates from February 2021. The November transfer was supposed to allow us to survive and at least pay salaries, although it is still insufficient to cover our other costs, such as the purchase of fuel for vehicles or even spare parts."
The delay in the transfer is confirmed by a source familiar with the case who, like Bou Saad, said he has no answer on the reason for this failure to pay so far by BDL. Contacted L'Orient-Le Jour, a source at BDL denied that the blockage is coming from the bank, inviting us to "consult the CDR and the municipalities". Environment Minister Nasser Yassine could not be reached for a comment on this new waste management crisis.
This new mini-crisis in Metn and Kesrouan is triggered by a strike by Ramco workers who will not be paid this month. (Credit: Photo provided to L'Orient Today by a witness)
From dollars to “lollars”
Regarding the crisis arising from this failure to transfer money, the source familiar with the case said that "possible claims by workers and a blocked transfer are two independent matters.”
“Perhaps the contractor lacks cash to pay his employees," she added. Walid Bou Saad confirms that Ramco lacks cash, but he blames the state for putting him in this situation, denying that he is using the workers to pressure anyone. "The company is crumbling under $11 million in debt, it is impossible for us to continue without a release of funds from the state," he insisted.
The president of Ramco recalled that originally, contractors were paid in lira on the basis of a contract in dollars. However, before the devaluation of the lira in 2019, the exchange rate of the dollar was fixed at LL1,515 and remained unchanged for more than 20 years. Since the exchange rate fluctuates on the parallel market nearly every day, and while contractors were still paid at the official rate, an arrangement was made between the various parties for payments to be made in “lollars” or “Lebanese dollars,” exchanged at a rate of LL 3,900 and later LL 8,000 to the US dollar.
"This means that the $1.7 million transfer that has not been made is actually $400,000," said Bou Saad. The above-mentioned source wondered whether the BDL might not be in favor of changing this arrangement.
In any case, if the strike continues, the streets will remain flooded with garbage for days to come, with all the health risks and inconveniences that this implies. "The worst thing is that there is no sense of urgency on the part of officials to intervene to end this new crisis," said Bou Saad, who recently issued a statement publicly calling on the CDR to find a replacement for him for the remainder of the contract, which expires in 2024.
This article was originally published in French in L'Orient-Le Jour.
