Dispute between Government, Makhlouf Deepens Syria's Economic Woes

A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)
A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)
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Dispute between Government, Makhlouf Deepens Syria's Economic Woes

A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)
A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)

Concerns over the economy increased in Damascus as the result of the dispute between the government and businessman Rami Makhlouf.

The latter warned of an “economic meltdown” in the event that his company, Syriatel, collapsed.

The government’s Telecommunications and Postal Regulatory Authority had informed two of Makhlouf’s companies, Syriatel and MTN mobile phone, to pay about 234 billion Syrian pounds to the state treasury as a penalty, after failing to meet a deadline to pay hundreds of millions in dues.

The businessman, who for decades had the country’s most prominent economic pillars, is facing a series of measures that would affect his shares in the state-owned Syrian Telecom Company (Syriatel), the country’s biggest mobile phone company.

Makhlouf published on Facebook on May 10 a letter from Syriatel to the government saying the company was ready to pay immediately “a first instalment to be determined on the basis of the liquidity available to the company.” He also criticized the Telecommunications and Regulatory Authority for posting a statement that contradicts his letter.

In response, the Authority issued a document on May 16, signed by five managers of Syriatel Mobile Telecom, in which they declared their approval of the Authority’s requests, but noted that Makhlouf had refused to give them the green light to proceed with the agreement.

Syria’s security bodies had launched a campaign of arrests earlier this month targeting dozens of employees of companies affiliated with Makhlouf, and stormed his house in Yaafur.

In a video on social media, the businessman implored his cousin, President Bashar Assad, to “intervene and put an end to the security services’ operations” and the release of his employees and managers.

Amid the dispute, anxiety mounted in the Syrian street over an economic deterioration, in parallel with the strict health measures imposed by the government over the coronavirus outbreak, which have compounded unemployment and poverty.



Israel, Hamas Poised for Third Hostage-prisoner Exchange

An Israeli police officer looks on as a Red Cross vehicle is seen near the Israeli military prison, Ofer, on the day Israel releases Palestinian prisoners as part of a hostages-prisoners swap and a ceasefire deal in Gaza between Hamas and Israel, near Ramallah in the Israeli-occupied West Bank, January 19, 2025. (Reuters)
An Israeli police officer looks on as a Red Cross vehicle is seen near the Israeli military prison, Ofer, on the day Israel releases Palestinian prisoners as part of a hostages-prisoners swap and a ceasefire deal in Gaza between Hamas and Israel, near Ramallah in the Israeli-occupied West Bank, January 19, 2025. (Reuters)
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Israel, Hamas Poised for Third Hostage-prisoner Exchange

An Israeli police officer looks on as a Red Cross vehicle is seen near the Israeli military prison, Ofer, on the day Israel releases Palestinian prisoners as part of a hostages-prisoners swap and a ceasefire deal in Gaza between Hamas and Israel, near Ramallah in the Israeli-occupied West Bank, January 19, 2025. (Reuters)
An Israeli police officer looks on as a Red Cross vehicle is seen near the Israeli military prison, Ofer, on the day Israel releases Palestinian prisoners as part of a hostages-prisoners swap and a ceasefire deal in Gaza between Hamas and Israel, near Ramallah in the Israeli-occupied West Bank, January 19, 2025. (Reuters)

Israel and Hamas were set to carry out their third hostage-prisoner exchange on Thursday, with three Israelis and five Thai captives slated for release as part of a ceasefire deal aimed at ending the Gaza war.

A fourth exchange is scheduled for the weekend, but Hamas accused Israel on Wednesday of jeopardizing the deal by holding up aid deliveries, an allegation Israel dismissed as "fake news".

The office of Prime Minister Benjamin Netanyahu identified the three Israelis to be released Thursday as Arbel Yehud, Agam Berger and Gadi Moses, adding that five Thai citizens held in Gaza would also be freed.

In a statement Wednesday evening, the Moses family said it had "received with great excitement the wonderful news of our beloved Gadi's return".

The ceasefire that took effect on January 19 hinges on the release of Israeli hostages taken during Hamas's October 7, 2023 attack, in exchange for 1,900 people -- mostly Palestinians -- being held in Israeli custody.

Hamas has so far released seven hostages, with 290 prisoners freed in exchange.

Israel is to release 110 prisoners, 30 of them minors, in exchange for the three Israelis to be released on Thursday, the Palestinian Prisoners' Club advocacy group said.

The next swap on Saturday will see three Israeli men released, according to Netanyahu's office.

Aid trucks

The truce deal has allowed truckloads of aid into the devastated Gaza Strip, where the war has created a long-running humanitarian crisis.

But two senior Hamas officials accused Israel of slowing down aid deliveries, with one citing items key to Gaza's recovery such as fuel, tents, heavy machinery and other equipment.

"According to the agreement, these materials were supposed to enter during the first week of the ceasefire," one official said.

"We warn that continued delays and failure to address these points will affect the natural progression of the agreement, including the prisoner exchange."

Israel hit back at the accusation, with a spokesman for COGAT, the Israeli defense ministry body that oversees civilian affairs in the Palestinian territories, calling it "totally fake news".

Between Sunday and 1100 GMT on Wednesday, "3,000 trucks entered Gaza", the spokesman said.

"The agreement says it should be 4,200 in seven days," he added.

As the text of the agreement -- mediated by Qatar, Egypt and the United States -- between the warring parties has not been made public, AFP was not able to verify its terms on aid.

Both Hamas officials said representatives of the group had raised the issue during a meeting with Egyptian officials in Cairo on Wednesday.

Forced displacement an 'injustice'

The ceasefire deal is currently in its first 42-day phase, which should see 33 hostages freed.

Next, the parties are due to start discussing a long-term end to the war.

The third and final phase of the deal should see the reconstruction of Gaza as well as the return of the bodies of any remaining dead hostages.

US President Donald Trump has repeatedly claimed credit for sealing the agreement despite it taking effect just ahead of his inauguration, and his Middle East envoy Steve Witkoff, who took part in the talks, met with Netanyahu in Israel on Wednesday

Trump has invited Netanyahu to the White House on February 4, according to the premier's office.

After the truce took effect, Trump touted a plan to "clean out" the Gaza Strip, calling for Palestinians to relocate to neighboring countries such as Egypt or Jordan.

The idea has faced strong backlash from both countries, as well as from European governments.

Egyptian President Abdel Fattah al-Sisi said Wednesday that the forced displacement of Palestinians was an "injustice that we cannot take part in".

Jordan's King Abdullah II, meanwhile, stressed "the need to keep the Palestinians on their land and to guarantee their legitimate rights, in accordance with the Israeli and Palestinian two-state solution".

More than 376,000 displaced Palestinians have gone back to northern Gaza since Israel reopened access earlier this week, according to the UN humanitarian office OCHA, with many returning to little more than rubble.

"My house is destroyed," 33-year-old Mohammed Al-Faleh told AFP. "This morning, we built a small room with two walls made from the remains of our home. There is no cement, so I used mud.

"We are facing great difficulties," he added. "The biggest problem is that there is no water -- all the water wells are destroyed. Food aid is reaching Gaza... but there is no gas or electricity. We bake bread on a fire fueled by wood and nylon."