A service station near Bouar (Kesrawan). (Credit: Philippe Hage Boutros/OLJ)
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Gas stations are launching an open-ended strike today. George Brax, a spokesperson for the gas station owners’ syndicate, blamed the closure on fuel distributors, who he said are demanding to be paid in cash US dollars. According to Brax, gas station owners do not have access to dollars provided at the Sayrafa rate, unlike fuel importers, and therefore suffer a loss of LL35,000 per 20 liters of gasoline. A representative for fuel distributors pointed the finger at bank charges, saying that BDL has stopped its practice of subsidizing 85 percent of the cost of gasoline at the Sayrafa rate, meaning that importers must buy dollars from the market at a higher rate.Cabinet decided yesterday to call Banque du Liban Governor Riad Salameh to a cabinet session to discuss the government-bank relationship. It was one of the few tangible outcomes of yesterday’s multi-hour cabinet session. During and immediately after the session, local media reported that Justice Minister Henri Khoury had been tasked with forming a committee, which would include bankers, to monitor the judiciary’s activities related to commercial banks. Information Minister Ziad Makary denied the reports in a post-meeting press conference, saying there is no such committee. Additional reports in local media said that during the session, Tourism Minister Walid Nassar requested the dismissal of four judges: Suhail Abboud, Ghassan Oweidat, Munif Barakat and Ali Ibrahim. During its session cabinet also granted preliminary approval to fund the energy ministry with an additional $78 million to avoid a shutdown of power plants. During the meeting Interior Minister Bassam Mawlawi reportedly presented evidence of dangerous materials being stored unsafely at the Zouk power plant, but it is not clear what next steps may be taken to address the matter.
The Gulf Cooperation Council is expected to meet Sunday and there are indications the Gulf monarchies may be planning to re-engage with Lebanon. During yesterday’s cabinet session Prime Minister Najib Mikati expressed optimism for an improvement in relations with the Gulf, saying “the dark cloud that covered relations… will soon disappear.” On Tuesday Saudi Arabia issued a statement saying it welcomed “the positive points” in a Monday statement from Mikati, in which the Lebanese politician had reaffirmed his determination to prohibit Lebanon’s financial and banking system from being used in ways that “could undermine the security of Saudi Arabia and the GCC countries.” L’Orient-Le Jour columnist Mounir Rabih said Sunday’s GCC meeting could result in the return of Gulf Arab ambassadors to Beirut, following a meeting last week in Paris between French and Saudi advisors, in which Lebanon was reportedly discussed.
Raja Salameh will appear before Judge Nicolas Mansour for questioning today. The questioning relates to illicit enrichment charges connected to real estate assets in Paris. Salameh, the brother of central bank Governor Riad Salameh, has been in detention since last Thursday after Mount Lebanon Public Prosecutor Judge Ghada Aoun initiated legal proceedings against him. He has denied any wrongdoing. Raja Salameh was questioned by Deputy Prosecutor at the Court of Cassation Jean Tannous Tuesday in relation to another investigation, concerning the company Forry Associates Ltd. A Swiss investigation has concluded that Forry Associates received $330 million in commissions on the sale of central bank financial securities between 2002 and 2015.
Due to the public holiday to mark the feast of Annunciation, there will be no Morning Brief on Friday.
In case you missed it, here’s our must-read article from yesterday: “The man who documents Lebanon's queer community to combat his fear of forgetting”