Cabinet greenlights bidding process for mobile operators and confirms controversial customs appointment

BEIRUT — Cabinet gave the green light on Thursday to launch the competitive bidding process for the management and operation of the two public networks, MIC 1 and MIC 2, whose services are marketed under the Alfa and Touch brands.

It also approved appointments to several key positions on the Higher Council of Customs, some of which had sparked controversy.

No major files regarding financial sector reforms or the restoration of the state's monopoly on weapons were on the agenda.

On the mobile telephony issue, Information Minister Paul Morcos explained that the ministers "approved the recommendations of the committee chaired by Deputy Prime Minister Tarek Mitri, tasked with restarting the allocation procedure and restoring the mandate to the ministry to prepare the terms of reference and contracts," while also requesting an "inventory and evaluation" of the operators' assets.

According to the decision text, the costs of this evaluation will be shared equally by both operators, outside of their annual budgets.

This inventory, which also aims to distinguish the operators' assets from those of the ministry currently managing them, must be expedited in view of moving to the next stage, namely the preparation of the terms of reference — or at least defining the criteria it must meet.

The goal is to allow the Ministry of Telecommunications to launch preparatory operations for two international tenders for network management.

Presumption of innocence

Regarding appointments to the Higher Council of Customs, the government confirmed Gracia Azzi — a former council member — as director-general, Misbah Khalil as president, and Louai Hajj Shehadeh and Charbel Khalil as council members.

Azzi's appointment was met with some pushback due to her having been named in the Beirut Port blast investigation under Judge Tarek Bitar.

Paul Morcos stated at the press briefing that "the law does not prohibit this appointment as long as the presumption of innocence remains."

The executive also took note of the strategy of Economy Minister Amer Bisat to build new silos in the ports of Beirut, Tripoli, and in the Bekaa, and tasked him with meeting foreign donors to secure funding for these projects.

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The ministers also took note of a report from the Civil Service Council on the potential cost of an adjustment of public sector salaries and end-of-service allowances, as well as some rules pertaining to the status of civil servants and the retirement system.

"It was decided to continue the studies in order to make the appropriate decision," Morcos specified, adding that "five-year raise proposals had been discussed."

Before the Cabinet meeting, he had spoken out to deny reports that the government intended to abolish end-of-service indemnities for the public sector. Public sector salaries have still not been adjusted to compensate for the Lebanese lira's depreciation and then dramatic devaluation following the 2019 crisis.

Among other items under consideration were a decree modifying the allowances paid to the management of the Tripoli Special Economic Zone, a 5,500-square-meter area under development near the port area of the northern capital for years and offering tax and financial incentives to attract investors.

Another decree was to modify the responsibilities of the director of IDAL, the Investment Development Authority of Lebanon, whose workload has been undermined by the crisis.