Sunday, 6 May 2012

When $11 Billion Simply Vanish!

Hussein Assi

Many were the irregularities and violations committed by Fouad Saniora when he reached premiership, following the assassination of former Prime Minister Rafiq Hariri.

However, when he left power, one of the most strange scandals in Lebanon’s history was uncovered. Eleven billion dollars were believed to have simply vanished, as no document proves where the money was spent…

Where Did the 11 Billion Go?

The “Saniora era” is not one of the best stages in Lebanon.
Politically speaking, Lebanese people remember well Saniora for being the man who headed an unconstitutional government and eliminated a whole Lebanese sect, in an unprecedented violation of the Lebanese Constitution.

He was the one who did not care for his people’s demands and ignored a sit-in protest that lasted for more than a full year. Saniora was also the head of the unconstitutional government which decided to target the Resistance through its telecommunications network.

Yet, this is not everything. The biggest scandal was recently uncovered, when Lebanese people discovered that $11 billion had simply vanished during Saniora’s reign, and that there was no documentation at all proving where this huge amount of money was spent. Thus, only one thing is sure and certain: the 11 billion dollars were spent in excess to the allowed spending with no documentation to support that spending.

Saniora Defends Himself!

Seeking self-defense, Saniora, who headed two governments between 2005 and 2009, recently claimed that governments resorted to extra-budgetary spending from 2006 to 2010 after draft budgets sent by these governments to Parliament were not approved. He defended overspending by his two governments, saying it was to cover salary increases for public sector employees, an increase in oil prices that raised the cost of electricity production, and the servicing of public debt.

“Therefore, the increase in spending was to operate state institutions during 2006-2010. Eighty-three percent of the money spent was to service the additional public debt, the additional cost of electricity and the additional increase in the civil service employees salaries and wages and retirement salaries,” Saniora said.

Saniora’s logic is rejected by the other bloc, as nothing proves that Saniora is telling the truth, given that the money was spent without documentation, contrary to all laws and norms.

According to MP Youssef Khalil, who’s a member of MP Michel Aoun’s Change and Reform parliamentary bloc, the whole issue must be subject to legal and constitutional norms. “Detailed account statements have to be submitted to the Finance and Budget parliamentary committee alongside the court of audit, so that appropriate legal measures be taken,” Khalil told moqawama.org. He said no compromise was possible over such a sensitive issue, and stressed the necessity to reinforce a culture of accountability in the country.

Between $6 Billion and $11 Billion..

Ignoring the fact that the current government’s spending is fully documented, the so-called March 14 alliance sought to escape from the “scandal” by claiming that the spending made by Premier Najib Miqati’s cabinet in 2011 was the same as the $11 billion which vanished. Therefore, March 14 coalition MPs refused to retroactively approve LL8.9 trillion – nearly $6 billion – in extra-budgetary spending in 2011 by Miqati’s cabinet.

"There is no compromise over such a sensitive issue, its necessary to reinforce a culture of accountability in the country"

They are conditioning their approval of the bill to a comprehensive settlement of the $11 billion spent by the governments.

However, the “link” the March 14 MPs are seeking to create is not logical. “The $6 billion and the $11 billion are two completely separate things,” Change and Reform MP Youssef Khalil told moqawama.org. “They were spent by different people, different governments, and under different circumstances,” he explained. “They cannot be the same.”

The Free Patriotic Movement lawmaker, meanwhile, noted that records corresponding to the current government’s spending were available. He recalled that Lebanon has been without a state budget since 2005, and therefore all governments, including the current one, are spending in excess to the 2005 budget. “Expenditures have no doubt increased,” he noted. “”What should be done now, however, is to legalize this spending, and it’s the Parliament, and only the Parliament, which is eligible to do so.”

No Settlement Possible!

“No settlement is possible, as accountability must take place,” FPM MP Youssef Khalil stressed. His assertion came in response to reports of a possible compromise that would be reached among the feuding political parties in Lebanon to cover the $11 billion scandal in order to legalize the current government’s spending, given that no other choice is on the table, since President Michel Suleiman is refusing to sign himself the decree.

Khalil hinted that the issue should remain pending, awaiting the legalization of the $11 billion. He was referring to a proposal submitted by Finance Minister Mohamad Safadi to consolidate the accounts of former Prime Ministers Fouad Siniora and Saad Hariri’s cabinets, from 2006 until 2010, which is in accordance with the law given that it was not subject to political deals. Such proposal should then be transferred to the Finance and Budget committee which would present it in Parliament.

MP Khalil said that afterwards, the draft bill would pass in Parliament alongside the current government’s spending. Yet, he insisted that the voting on the two bills would take place separately. “The Parliament’s adoption of the bills would mean that the Parliament was aware of the spending process and gave its green light to proceed, and this is the main issue.”

Only in Lebanon, a suspicious scandal, such as the vanishing of $11 billion, can pass as if nothing happened.

But this is not everything. Only in Lebanon, some routine processes do not take place, making exceptions and violations the ordinary things. Thus, Lebanon remaining without a state budget since 2005 doesn’t seem to be a wonder!

Source: moqawama.org



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