Lebanon skirts crisis by tribunal payment



BEIRUT // Lebanon averted a political crisis yesterday when its prime minister, Nejib Mikati, announced that its payment to the special tribunal investigating the assassination of Rafiq Hariri had been transferred.

The government had been split on whether to hand over the US$32 million (Dh117.5m) owed to the United Nations-backed Special Tribunal for Lebanon (STL) amid fears that it might collapse if an agreement could not be reached.

Questions remain about where the $32m has come from and how the money was dispersed without cabinet or parliamentary approval. Various reports have linked the money to the budget of the prime minister's office and the Higher Relief Committee.

Either way, the move avoided a showdown between political allies within the March 8-dominated cabinet.

A crucial cabinet session scheduled for yesterday, at which funding for the court was to be discussed, was postponed.

Mr Mikati addressed the issue in a televised speech, announcing that the money had been transferred to the STL yesterday morning, in a bid to "protect Lebanon".

He said he would refuse "to head a government that would disrespect international commitments".

He added: "Our obligation to achieve justice makes us more committed to the STL, as long as the tribunal is not biased and does not politicise the probe."

The STL yesterday welcomed Mr Mikati's announcement, but said that the funds had not yet been received. The STL had expected the money to be paid by the end of October.

Lebanon now avoids possible sanctions or having non-payment of its share of the STL budget reported to the UN Security Council.

The opposition March 14 coalition hit back shortly after Mr Mikati's statement. While the group welcomed that Lebanon's 49 per-cent share of the budget had been paid, it said that the money appeared to have been "smuggled" through a decision that circumvented the cabinet.

"We reject the method in which a national cause was handled in that it was tackled outside the cabinet," said a statement issued by the group that includes former prime minister Saad Hariri's Mustaqbal movement, Kataeb and the Lebanese Forces.

The opposition also said that it took the decision to fund the court to mean that the government now views the tribunal as legitimate.

A government official told the Associated Press that the money was transferred from a Lebanese government bank account at the Central Bank. The official spoke on condition of anonymity because of the sensitivity of the matter.

Hilal Khashan, a professor of political science at the American University of Beirut, said Mr Mikati had been allowed to find a "practical mechanism" to secure the funds and avoid a political confrontation.

"It did the trick," he said. "Mikati succeeded in navigating the turbulent political environment and in doing so won a new political mandate."

During his speech, the prime minister also urged Lebanon's divided political groups to return to dialogue, headed by President Michel Suleiman.

Mr Mikati was backed for the position of premier - a post reserved for a Sunni Muslim under Lebanon's delicate sectarian power-sharing system - by Hizbollah and its allies in the March 8 coalition.

Both Hizbollah and the Free Patriotic Movement - which has the largest single bloc in the 30-member cabinet - have opposed the work of the Netherlands-based court.

However, Mr Mikati has remained committed to co-operating with the STL. Last week, he even hinted he would resign if an agreement on funding could not be reached.

Differences over the STL have developed into one of the most divisive issues within Lebanese politics. In January, Saad Hariri's government collapsed after the resignation of several ministers who opposed co-operating with the court investigating the murder of his father.

In June, four Hizbollah supporters were indicted by the STL for allegedly taking part in the February 2005 assassination of Hariri, a former premier. The Shiite movement has denied any involvement and described the tribunal as a politicised conspiracy.

The four men - named in the indictment as Mustafa Amine Badreddine, Salim Jamil Ayyash, Hussein Hassan Oneissi and Assad Hassan Sabra - have yet to be apprehended.

The court recently decided to await further information from Lebanese authorities on their efforts to arrest the men before starting in absentia proceedings against them.

* With additional reporting by the Associated Press

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

The currency conundrum

Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. “The US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China’s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.”

Most countries now actively want a weak currency to make their exports more competitive. “China seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support," says Mr Mould.

This is a race to the bottom, and everybody wants to be a winner.

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.