Lebanon on Edge as Time, Money Run Out

FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
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Lebanon on Edge as Time, Money Run Out

FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir

Fouad Khamasi fills his taxi every day with about 40,000 Lebanese pounds' worth of fuel. It could cost at least four times that much if subsidies come to an end.

The Beirut cab driver, 53, can just about afford to buy fuel and feed his kids. He worries the price of subsidized foods and key imports - wheat, fuel, medicine - will skyrocket.

"These are the toughest days I've ever seen," Reuters quoted him as saying. "Some days, you stick your hand in your pocket and find nothing ... I leave the house and just pray. Whatever I make, it does nothing. It's a joke."

Time and money are running out for Lebanon.

Foreign reserves have dropped far below what the state already deemed "dangerous levels" when it defaulted on its huge debt in March, meaning it cannot afford to keep subsidies for long.

Leaders in power for decades have yet to enact a financial rescue plan, a year after huge protests against them swept the country, and they have failed to secure aid from foreign donors.

Talks with the International Monetary Fund (IMF) stalled earlier this year when Lebanese government officials, bankers and political parties could not agree over how big the losses were in the financial system and who should bear them.

After a massive explosion at Beirut's port in August that killed nearly 200 people and caused billions of dollars worth of damage, France stepped in.

But rival sectarian politicians could not get past the first hurdle on the French roadmap towards financial aid: naming a new cabinet quickly.

The currency, which has lost more than 80% of its value against the US dollar since last autumn, weakened after the French effort faltered.

Meanwhile, comments from officials indicating an end to some subsidies within months have triggered panic buying, raising the specter of food shortages and a more dramatic crash in the currency.

In the nation of some six million people, more than 55% of whom are below the poverty line, many are bracing for hunger and cold as winter looms.

"Everything that happened since last October could have been avoidable," Nasser Saidi, a former vice central bank governor, told Reuters.

He said targeted aid to the poorest Lebanese would be more effective than subsidies across the board, which had benefited smugglers taking goods into Syria.

"It's all kicking the can down the road. What should have been done is a full economic and financial plan," Saidi said.

Importers of key commodities said they had not been given a timeline to plan for how long subsidies could last.

Central Bank Governor Riad Salameh has said the bank could not finance trade indefinitely, although he gave no timeframe.

President Michel Aoun said recently of reserves: "The money will run out. What can we say?"

An official source close to the government told Reuters the money left for subsidies would last six more months by cutting support for some goods.

The state, which critics say is mired in corruption, and the paralyzed banking sector, its biggest creditor, have traded blame for the crisis.

Meanwhile, the wealth gap, already one of the region's largest, widens. In a country that relies heavily on imports and produces little, prices for many items including diapers have tripled.

In Beirut, men and women, some with young children, can often be seen digging for food in dumpsters near city intersections.

Two months after the port blast, Lebanese expect life to get even harder.

Many families now rely on charity. The meltdown could render people more dependent on political factions for aid and security, in a throwback to the militia days of the civil war.

Some analysts have warned that security forces, their wages fast losing value, would not be able to contain rising unrest. Hospitals fighting a surge in COVID-19 cases are overstretched. Fuel shortages have left city streets dark. Cars line up at petrol stations for rationed fuel.

"We're scared we won't be able to go on," said Siham Itani, a pharmacist who fears price hikes and being robbed. She said supplies of insulin and blood pressure medication had dwindled.

Another pharmacist said a masked man had held her up at gunpoint, asking for baby food.

Mostafa al-Mohalhal, who at 62 suffers from diabetes, stored four insulin vials in his fridge, but the daily power cuts spoiled them.

"If the price rises, how will I pay for them?" he said. "People will die in the streets."



Jamal Mustafa: Saddam Said ‘Qassim Was Honest, But the Party Ordered His Assassination’

Jamal Mustafa Sultan.
Jamal Mustafa Sultan.
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Jamal Mustafa: Saddam Said ‘Qassim Was Honest, But the Party Ordered His Assassination’

Jamal Mustafa Sultan.
Jamal Mustafa Sultan.

Jamal Mustafa Sultan, Saddam Hussein’s son-in-law and former deputy secretary, recalled how the late Iraqi president viewed former Prime Minister Abdul Karim Qassim as an honorable and brave man even though he was involved on an attempt on his life.

In the third installment of his interview to Asharq Al-Awsat, Mustafa said: “In 1959, a fateful decision by Iraq’s Baath Party, led by Fuad al-Rikabi, changed the course of a young man’s life. The party planned a bold attempt to assassinate Iraqi leader Abdul Karim Qassim on Oct. 7.”

When a team member dropped out shortly before the operation, Saddam, then a little-known young man, was brought in. During the ambush on Al-Rashid Street in Baghdad, Qassim was slightly injured, and Saddam was wounded by shrapnel in his leg, said Mustafa.

After the failed attempt, al-Rikabi and other senior Baath members, including Hazem Jawad and Ali Saleh al-Saadi, fled to Syria. There, al-Rikabi kept asking about Saddam until he learned that Saddam had also escaped, organizing his secret journey to Syria on his own.

Hazem Jawad, a key Baath Party leader, recalled the moment Saddam Hussein became a full party member. In a small underground apartment in Damascus, Fuad al-Rikabi led a meeting with several party members, including himself, Ali Saleh al-Saadi, and Medhat Ibrahim Juma. “Fuad praised Saddam, calling him courageous and loyal, and proposed accepting him as a full member. We all agreed,” said Jawad, according to Mustafa.

“Saddam, a tall young man with piercing eyes and dark skin, stood before us. Fuad recited the party oath, and Saddam repeated it, officially joining the Baath Party,” he continued.

“We spent the next two hours talking over tea and cake. Before leaving, Fuad announced his trip to Cairo. Saddam also asked for permission to go to Egypt to continue his law studies. We approved, as it wasn’t safe to return him to Iraq after his involvement in the assassination attempt on Abdul Karim Qassim,” recounted Mustafa.

Saddam’s respect for Qassim

It’s uncommon for a leader to praise a predecessor who survived an assassination attempt against them, but Saddam did just that. Mustafa shared the story during a meeting.

“President Qassim, may God have mercy on him, was brave and honest,” Saddam said, according to Mustafa. “I respect him for serving Iraq with integrity.”

“We were young and impulsive. We didn’t think about the reasons behind the operation or what might happen afterward. We didn’t even consider who could replace Qassim if he were gone.”

When told that Qassim’s sister was his only surviving family member, Saddam instructed that she be given a car and financial support.

Saddam also treated former President Abdul Rahman Arif with respect, despite efforts to tarnish his legacy. Mustafa noted that campaigns to smear Arif were part of a broader attempt to justify Iraq’s invasion and undermine its independence. He urged historians to seek the truth and challenge false narratives.

Abdul Karim Qassim. (Getty Images)

Mustafa's reflection on Saddam

When asked if Saddam had made mistakes, Mustafa replied: “Mr. President worked for Iraq’s progress. Like anyone, he sometimes got things right and sometimes wrong, but his goal was always to elevate the country.”

“He had no interest in wealth. Over 20 years, investigators searched for assets linked to him—land, money, anything—but found nothing. Even his political opponent, Iyad Allawi, confirmed this. Saddam was strict about protecting public funds, and this extended to his children as well,” he added.

He also criticized the current government, accusing it of seizing land and displacing Iraqis.

“They’ve taken properties from displaced residents and given them to foreigners, including Iranians, Pakistanis, and Afghans. Areas like Jurf al-Sakhar and Al-Awja have been emptied, with residents banned from returning. Some lands are controlled by foreign military intelligence, impacting not just Iraq but the region. Christians have also lost properties to militias,” noted Sultan.

He shared his own losses: “My family’s land, passed down for generations, was confiscated. An orchard over 250 years old and another property from my great-grandfather, over 200 years old, were taken simply because we’re linked to the former regime. Even if a child in our family registers property now, it’s immediately seized.”

He added: “My family and others have lost everything. While some managed to sell or keep a few properties, all of ours were taken.”

Criticism of Moqtada al-Sadr, Iraq's sectarian divide

Mustafa expressed disappointment in Shiite cleric Moqtada al-Sadr after the fall of Saddam’s regime.

“Moqtada knows the truth about who killed his father. He attended investigation meetings and knows the details. His father, Mohammad al-Sadr, had influence and even criticized the regime in Friday sermons. Despite warnings, he refused official protection before his assassination,” he said.

On claims that Saddam’s government was Sunni-dominated, Mustafa disagreed.

“At that time, we were all Iraqis. There was no emphasis on Sunni, Shiite, or Christian identities. Our shared Iraqi identity came first, and positions in the government, military, or party were based on merit. For example, Tariq Aziz, a Christian, held top roles, including foreign minister and deputy prime minister. Sectarianism wasn’t a factor,” he said.

He criticized the current leadership, accusing it of destroying Iraq’s unity.

“Today’s politics aim to change Iraq’s demographics and weaken the country. Millions of Iraqis have been displaced, not just one group but people from all regions. Over 10 million now live abroad. This isn’t a coincidence—it’s a deliberate effort to break Iraq’s unity and control its future,” noted Mustafa.

Returning to Iraq

When asked if he hopes to return to Iraq, Mustafa said: “Since 2003, all the governments in Iraq have been installed by the US occupation and are aligned with Iran to further its agenda in the region, even through militias in Iraq, Syria, Lebanon and Yemen. After the occupation began, Iran-backed militias targeted Iraq’s scientists, doctors and pilots, which led to over 10 million Iraqis fleeing the country. The human cost of this is immense and unacceptable.”

He told Asharq Al-Awsat: “Of course, I want to return to Iraq. Every patriotic Iraqi who loves their country wants to return. It’s just a matter of time. We hope, God willing, that Iraq will be liberated and strong again, and when that happens, my family and I will be among the first to return.”

Mustafa also criticized Iran’s growing influence in the region: “People here are talking about Iran’s control over four Arab capitals: Beirut, Damascus, Baghdad and Sanaa. These countries are falling apart, with militias making the decisions, not governments. The policies being followed harm these nations’ interests and their Arab identity.”

He said Saddam quickly recognized a broader plot to destabilize Iraq and the region.

“Saddam saw Iraq as a barrier to a project aimed not only at Iraq, but at the entire Arab world, threatening their existence and role,” he said.

Mustafa also blamed Iran for starting the Iraq-Iran war, citing Tehran’s clear policy of exporting its revolution, as stated in its constitution.

When asked about reports that Iraqi intelligence proposed assassinating Iran's Supreme Leader Khomeini during his stay in Baghdad, Mustafa confirmed it but explained why Saddam rejected the idea.

“Saddam was a noble and honorable man. He would never allow harm to come to a guest, especially through betrayal. He would never consider or permit such a thing.”