The United States (US) has announced sanctions against two Lebanese businessmen and a sitting Member of Parliament (MP) for corruption and undermining rule of law in the country.
Treasury Targets Two Businessmen and One Member of Parliament for Undermining the Rule of Law in Lebanon https://t.co/p4qLOKd8MS
— U.S. Embassy Beirut (@usembassybeirut) October 28, 2021
On Thursday, the US Treasury Department sanctioned Jihad al-Arab, Dany Khoury, and MP Jamil Sayyed for having “personally profited from the pervasive corruption and cronyism in Lebanon, enriching themselves at the expense of the Lebanese people and state institutions.” The statement said the targeted individuals are “members of Lebanon’s business and political elite” and have contributed to the “breakdown of the rule of law” in the country.
Andrea Gacki, Director of the Office of Foreign Assets Control (OFAC), said the Lebanese people “deserve an end to the endemic corruption perpetuated by businessmen and politicians.” She called on the Lebanese government to immediately implement economic reforms, adding that the US “will not hesitate to use its tools to address impunity in Lebanon.”
The statement said that all US-based property of the sanctioned individuals has been “blocked and must be reported” to the OFAC. “In addition, any entities that are owned, directly or indirectly, 50 per cent or more by one or more blocked persons are also blocked,” it noted.
The US Treasury stated that the two wealthy businessmen—al-Arab and Khoury, a close associate of former Prime Minister Saad al-Hariri—used their “close political connections” to gain “multiple public contracts in exchange for kickback payments to government officials.” It accused both individuals of reaping “millions of dollars” from the contracts, while at the same time “failing to meaningfully fulfil the terms of those contracts.”
Also Read: US, Qatar Announce Sanctions Against Hezbollah Finance Networks
It also accused sitting MP Jamil Sayyed, who has close ties to the Iran-backed Hezbollah movement, of “undermining the rule of law” in Lebanon by “skirting domestic banking policies and regulations.” The statement added that Sayyed “was aided by a senior government official in transferring over $120 million to overseas investments.” The statement further claimed that Sayyed had urged officials to “shoot and kill” demonstrators that demanded his resignation and called him corrupt during the 2019 protests.
Meanwhile, US Secretary of State Antony Blinken blamed the individuals’ actions for causing the Lebanese people to “bear the brunt of a devastating economic crisis.” Blinken added that their actions “undermined the rule of law and principles of good governance” and said the sanctions are in “solidarity with the Lebanese people, who have long demanded accountability, transparency, and an end to endemic corruption.”
The United States is imposing sanctions on two corrupt Lebanese businessmen and a member of Parliament – an important step in promoting accountability in Lebanon. Lebanese officials must end corruption and take urgent action to address the crises the Lebanese people face.
— Secretary Antony Blinken (@SecBlinken) October 28, 2021
While none of the sanctioned individuals immediately responded to the US announcement, Sayyed tweeted that he would be holding a press conference on Friday and invited local, Arab, and international media to attend.
The sanctions mark the first time the US has sanctioned an ally of Hariri, a pro-Western politician. Previously the US had been imposing sanctions on individuals and politicians associated with Hezbollah.
Lebanon has been facing a severe economic and political crisis since last year’s devastating blast at the Beirut Port, which resulted in more than 200 deaths and about $15 billion in economic losses. The Lebanese pound has lost almost 90% of its value, and three-quarters of the population is on the brink of poverty. The country is also facing severe food, medicine, and fuel shortages. The GDP growth rate has crashed by around 40%, unemployment levels have skyrocketed, and inflation has soared.
The World Bank has stated that the country’s economic crisis ranks as one of the worst that the world has witnessed in over 150 years. It reported that “Lebanon is enduring a severe and prolonged economic depression, which is among the most severe crisis episodes globally since the mid-nineteenth century.”