ANSD : Hariri vows to implement bold reforms, fight corruption

FRI 26 - 4 - 2024

Date: Feb 13, 2019
Source: The Daily Star

Hariri vows to implement bold reforms, fight corruption

_{Hussein Dakroub| The Daily Star}
BEIRUT: Prime Minister Saad Hariri Tuesday pledged to carry out bold reforms, fight corruption and halt the waste of public funds to avoid further deterioration of Lebanon’s economic and financial conditions.

Reading out the new government’s policy statement in Parliament nearly two weeks after Cabinet formation, Hariri in his speech reaffirmed Lebanon’s commitment to key economic and financial reforms recommended at the CEDRE conference to salvage the country’s flagging economy.

He also stressed that the 1989 Taif Accord, which ended the 1975-90 Civil War and stipulated equal power sharing between Muslims and Christians, was the basis for maintaining stability and civil peace.

Hariri, who formed a 30-member national unity Cabinet on Jan. 31, unveiled the policy statement at the opening of a two-day parliamentary session chaired by Speaker Nabih Berri to debate the document before lawmakers hold a vote of confidence for the government later this week.

As the main political parties are represented in the government, it is assured of a vote of confidence with a majority of at least 100 MPs out of Parliament’s 128 members.

Declaring Lebanon has a final opportunity to reform and rescue its struggling economy, Hariri said: “We want this government to be one of actions and not a government of words. We want this government to be one for bold decisions and inevitable reforms and one that addresses the causes of the administrative imbalance, financial corruption and tax evasion.”

“We want this government to respond to the sufferings of the Lebanese and the aspirations of the youth for the future, to put at the top of its priorities political and security stability, social safety for all citizens, and to chart an economic and financial policy to cope with challenges,” he added.

Lebanon is burdened by over $84 billion in national debt, an endemic budget deficit and slow growth. Implicitly referring to the more than eight months that Cabinet took to form as a result of political rivals’ wrangling over the distribution of key ministerial posts, Hariri said the new government did not have the luxury of wasting time while its agenda was filled with challenges.

“These challenges require a workshop and joint cooperation between the executive and legislative authorities,” Hariri said.

“We are all in one boat. The holes that threaten this boat are known. It’s no longer useful to trade barbs about them.”

He said that after winning confidence, the government would work on endorsing the 2019 draft state budget and sending it to Parliament for final ratification. He reiterated the government’s commitment to implementing a string of essential economic and financial reforms included in the policy statement, which are seen as crucial to moving forward on accessing more than $11 billion in grants and soft loans that were pledged by international donors at the CEDRE conference held in Paris last year.

“What is required are bold and defined decisions, legislation and reforms that may be difficult and painful in order to avoid a deterioration of the economic, financial and social conditions toward more difficult and painful conditions. This is what the government will do with transparency, determination and solidarity among its political components,” Hariri said.

“We have an opportunity that will not recur for salvation and reforms. ... An opportunity is at hand for a promising economic, social, service-related and investment revival project.”

As part of the necessary reforms, the policy statement stipulates that Lebanon will reduce the deficit-to-GDP ratio by 1 percent annually over the next five years. To boost revenues and reduce state spending, the government will begin by cutting subsidies to the state-run Electricite du Liban, estimated at $2 billion annually, according to the statement. It also says Lebanon has committed to “a consistent financial and monetary policy to boost confidence in the national economy and reduce the public debt-to-GDP ratio by increasing the size of the economy and reducing the budget deficit.”

The policy statement also calls for restructuring the bloated public sector and the endorsement of a national strategy to fight corruption, largely blamed for the budget deficit.

Reaffirming the government’s commitment to the declared policy of dissociation from regional conflicts, Hariri said: “The government confirms that the National Accord Document [Taif Accord] and the Constitution emanating from it are the basis for maintaining stability and civil peace.”

He added that the government rallied behind the Army and security agencies in fighting terrorism and exposing Israeli spying networks.

Among the new government’s other priorities will be the refugee issue, revitalizing the public sector, improving the transportation sector, implementing a general policy for telecommunications, strengthening the participation of women in public and political life and improving the electricity sector.

“The government is committed to providing 24/7 electricity in the quickest time possible based on laws in force,” Hariri said.

On the problem of displaced Syrians, Hariri emphasized that the only solution was through the refugees’ safe return to their home country, rejecting any form of merging them into the host communities.

As for the oil and gas sector and Lebanon’s maritime border, the policy statement reaffirms the country’s full rights to natural resources in its exclusive economic zone.

“As for the conflict with the Israeli enemy, we will spare no efforts or resistance toward liberating the remaining occupied Lebanese territories,” Hariri said, reading the policy statement.

It also affirms “the right of Lebanese citizens to resist Israeli occupation, repulse its attacks and regain the occupied land” - vague wording that alludes to Hezbollah’s controversial arms arsenal against Israel.

During Parliament’s morning and evening sessions, 15 MPs representing various blocs spoke, with the majority focusing on the need to fight corruption as the first step toward reforms.

Hezbollah MP Hasan Fadlallah stole the limelight with his long presentation on corruption in the public administration. He claimed that if some files on alleged deals worth millions of dollars were exposed, this would lead some ministers to go to jail. “We will open files and the judiciary will hold [corrupt people] accountable,” Fadlallah said.

Separately, a senior Saudi envoy arrived in Beirut Tuesday night to congratulate Lebanese officials on the Cabinet formation.

The visit by Nizar al-Aloula came a day after Iranian Foreign Minister Mohammad Javad Zarif departed Beirut after holding talks with top Lebanese leaders on bilateral relations and regional developments.

“We came to congratulate the new government [on being formed], and we hope that this brings good to you [Lebanon] because the rise of Lebanon means the rise of the Arab world,” Aloula told reporters at Beirut airport.

Aloula’s visit to Beirut also comes amid media reports that Saudi Arabia might place a large deposit in Lebanon’s Central Bank as a means of shoring up the economy. But the Saudi official played down the reports, saying, “There are no surprises.” Aloula is set to meet Wednesday with President Michel Aoun, Berri and Hariri.

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