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Shortage of Financial Stamps Complicates Public Transactions in Lebanon

The Lebanese central bank in Beirut. (Reuters)
The Lebanese central bank in Beirut. (Reuters)
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Shortage of Financial Stamps Complicates Public Transactions in Lebanon

The Lebanese central bank in Beirut. (Reuters)
The Lebanese central bank in Beirut. (Reuters)

State institutions and private companies in Lebanon are suffering from a shortage of official stamps that are needed to be glued onto all official transactions and company bills. The issue has led to chaos in public institutions and stripped the treasury of millions of dollars in revenues, exacerbating the financial crisis. Officials have meanwhile, distanced themselves from the issue.

The stamps shortage started weeks ago, especially after Hassan Diab’s government was granted confidence and institutions commenced regular work again after most of them had at least partially shut down during the October 17 popular uprising.

A source from the Ministry of Finance told Asharq Al-Awsat that the ministry has started to “at least partially address the crisis”. He added that they will be “printing 8 million 250 LBP stamps that would be enough for 2020, pending that the new bid on 1,000 LBP and more stamps is completed”.

This lack of stamps in ministries, state institutions, notaries and private companies has stopped thousands of transactions and has exacerbated the public resentment towards the state’s apathy towards people’s suffering.

A source from the Ministry of Finance has revealed that the ministry has “attracted offers to print 8 million 1,000 LBP stamps, but until this is over, it has found a temporary solution that would allow some institutions to collect the price of the stamp without actually placing it on the transaction and providing a receipt with the stamp’s value.” The solution has been adopted in real estate, car registration transactions and other important deals that cannot be postponed.

Private companies have sounded the alarm after the could no longer issue any bill unless a stamp was placed onto it for the treasury to collect its value. A source informed on the crisis mentioned that “there is a real problem with the ministry collecting financial dues, bills and the value added tax because companies are unable to issue these bills without stamps”.

The Lebanese state’s revenue has receded to less than half after the popular uprising started as citizens refrained from paying due bills, whether electricity or water, car and automobile maintenance and even landline bills. The revenues from stamps, however, remained the same as people needed them for official transactions.

On Sunday, mayors in the northern Akkar region brought this crisis up with the MP Hadi Hbeish and raised their complaints to him about the delay in their work and citizens’ transactions.

“We have to stand by our people in these difficult and harsh circumstances,” Hbeish said, acknowledging that the shortage of stamps was hindering transaction.

He called on the Finance Minister to resolve this crisis as soon as possible, promising to follow up on the issue, saying the people already have to contend with the health, economic and psychological crises and can do without another one.

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Iran's Businesses Bear Brunt of Daily Power Blackouts

Repeated power cuts have angered Iranians in recent years, especially during the hot summer months - AFP
Repeated power cuts have angered Iranians in recent years, especially during the hot summer months - AFP
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Iran's Businesses Bear Brunt of Daily Power Blackouts

Repeated power cuts have angered Iranians in recent years, especially during the hot summer months - AFP
Repeated power cuts have angered Iranians in recent years, especially during the hot summer months - AFP

Baristas and servers linger outside a cafe in Tehran, smoking and chatting, as scheduled daytime power cuts due to energy shortages plunge businesses in Iran's capital into the dark.

"When the power is out, we are almost completely out of service," said Ali, a 30-year-old employee, of the nationwide rolling electricity outages imposed daily since November 11.

"We use mostly electrical equipment here in the cafe such as an electric oven and espresso machine," he told AFP, asking that only his first name be used.
Years of Western sanctions and a lack of investment in infrastructure have exacerbated the situation, especially during peak consumption months in summer and winter.

To deal with the shortages, the government has introduced two-hour blackouts, which rotate between various neighbourhoods in cities between 9:00 am and 5:00 pm.

President Masoud Pezeshkian attributed the decision to "low fuel reserves", saying Iran must "adjust the fuel for power plants so that we do not face problems in winter".

- 'Poison' -

Fatemeh Mohajerani, government spokeswoman, said power cuts were necessary to cut down on a relatively cheap low-quality fuel -- known as mazout -- used at some older-generation power plants.

The heavy fuel oil has been used for years to address power shortages despite its emissions causing heavy air pollution.

She said the public would need to deal with blackouts for a limited time, to find an alternative to what she described as "poison".

"It is unfair that part of the society should pay with their lives for the production of electricity," she added.

But for Mona, another employee at the cafe in Tehran -- home to about 10 million people -- it isn't worth the cost.

"The government says it has stopped burning mazut in a number of power plants in other cities, but we need to pay for that in Tehran," the 36-year-old told AFP.

Repeated power cuts have angered citizens of the Islamic republic in recent years, especially during the hot summer months.

In July, the authorities ordered the working hours of civil servants to be halved for several days in an attempt to save energy.

But energy shortages go beyond just electricity in Iran.

On November 12, National Iranian Gas Company announced daily gas consumption in the country had set a new record of 794 million cubic metres.

Economic expert Hassan Forouzanfard cited poor infrastructure, mismanagement and in particular Western sanctions as responsible for Iran's energy problems.

"Sanctions and the cutting of the ties with international energy companies have deprived us of both the necessary technology and investment to develop our oil and gas sectors," he told AFP.

- 'Warm clothes' -

"If we have a cold winter this year, we will have to collectively deal with both gas and electricity problems in the country," Forouzanfard said.
Iran, despite holding some of the world's largest natural gas and oil reserves, has grappled with massive energy shortages in recent months

"I do not think that the government would be able to either control the negative effects of the pollution or to resolve the energy imbalances in a reasonable and serious way in the short term," he added.

But Tehran says consumers must do their part to conserve energy.

"We have no choice but to consume energy economically, especially gas, in the current conditions and the cold weather," said Pezeshkian.

"I myself use warm clothes at home, others can do the same," the president added.

During one of the scheduled power cuts, a queue formed outside a supermarket in Tehran.

"Since it is dark inside and our CCTVs are offline, we allow just one customer at a time so we can better handle them," said Sina, a 24-year-old employee, who did not want to give his full name.

"We are afraid that in the dark and without the help of surveillance cameras, we can't figure out if an item goes missing," he said, arguing that the power cuts are hurting the small business.