Mikati Raises Ceiling on His Positions to Resolve Crisis with Gulf States

Lebanon's Prime Minister Najib Mikati and Parliament Speaker Nabih Berri holding talks. (Lebanese Parliament)
Lebanon's Prime Minister Najib Mikati and Parliament Speaker Nabih Berri holding talks. (Lebanese Parliament)
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Mikati Raises Ceiling on His Positions to Resolve Crisis with Gulf States

Lebanon's Prime Minister Najib Mikati and Parliament Speaker Nabih Berri holding talks. (Lebanese Parliament)
Lebanon's Prime Minister Najib Mikati and Parliament Speaker Nabih Berri holding talks. (Lebanese Parliament)

Lebanese Prime Minister Najib Mikati threw the ball into the court of “Hezbollah” and the “Marada Movement” by raising the ceiling on his positions and renewing the call for the resignation of Information Minister George Kordahi.

Mikati reaffirmed his determination to deal with the issue of relations with the Kingdom of Saudi Arabia and Gulf states according to sound rules.

“Whoever thinks that disruption is the solution is wrong,” stressed the premier while pointing out to unruly elitism the government was exposed to from within.

Mikati also voiced his rejection of ministers intervening in the work of the country’s justice system.

Beirut-based TV station al-Mayadeen quoted Kordahi as saying that he will neither resign nor go back on his controversial position. This has opened the possibility of dismissing Kordahi to discussion.

On Thursday, intensified meetings were held among Lebanese officials to try and find a solution for the crisis with Gulf states.

Mikati, for his part, met with both President Michel Aoun and Parliament Speaker Nabih Berri. Also, Berri met with Foreign Minister Abdallah Bou Habib.

“I placed His Excellency (Aoun) in the atmosphere that surrounded my visit to Glasgow and my meetings with various international bodies. I discussed with him ways to get out of the current crisis with Saudi Arabia and Gulf states, and we agreed on a road map,” said Mikati after meeting with the president.

Sources familiar with the meetings told Asharq Al-Awsat that “the options are now known, and they include either Kordahi’s resignation or dismissal.

“There will be no cabinet session before this matter is resolved,” the same sources noted.

“When we formed this government after months of disruption, delay, and missed opportunities, we announced that we are on a quick rescue mission to advance cooperation with international bodies and the International Monetary Fund, in addition to holding parliamentary elections,” said Mikati.

“We believed that the painful reality that our country is experiencing would push everyone to let go of personal interests and actively participate in the rescue mission, but this, unfortunately, did not happen,” he added.



Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.