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.



Israeli Military Sets up Roadblocks in Southern Lebanon, Announces It Won’t Withdraw by Deadline

 This picture taken from Lebanon's southern village of Shaqra on January 25, 2025 shows an Israeli army Merkava main battle tank moving along a road at the entrance of the village of Houla along the border with Israel in south Lebanon. (AFP)
This picture taken from Lebanon's southern village of Shaqra on January 25, 2025 shows an Israeli army Merkava main battle tank moving along a road at the entrance of the village of Houla along the border with Israel in south Lebanon. (AFP)
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Israeli Military Sets up Roadblocks in Southern Lebanon, Announces It Won’t Withdraw by Deadline

 This picture taken from Lebanon's southern village of Shaqra on January 25, 2025 shows an Israeli army Merkava main battle tank moving along a road at the entrance of the village of Houla along the border with Israel in south Lebanon. (AFP)
This picture taken from Lebanon's southern village of Shaqra on January 25, 2025 shows an Israeli army Merkava main battle tank moving along a road at the entrance of the village of Houla along the border with Israel in south Lebanon. (AFP)

Israel's military Saturday set up roadblocks across border towns and roads in a strategic valley in southern Lebanon, a day before the deadline for it to withdraw from the area under an agreement that halted its war with the Hezbollah group.

The Israeli military, meanwhile, confirmed that it will not complete its withdrawal from southern Lebanon by Sunday as outlined in the ceasefire agreement.

The deal that went into effect in late November gave both sides 60 days to remove their forces from southern Lebanon and for the Lebanese army to move in and secure the area, along with UN peacekeepers. Israel says Hezbollah and the Lebanese army haven’t met their obligations, while Lebanon accuses the Israeli army of hindering the Lebanese military from taking over.

In a statement Saturday, the Israeli military said the agreement is progressing. But it said in some sectors, “it has been delayed and will take slightly longer.”

The Lebanese military has said that they had deployed in areas following Israeli troops’ withdrawal, and in a statement Saturday accused the Israeli military of “procrastinating” in their withdrawal from other areas.

Washington appears to support an extension of this withdrawal phase.

While Lebanese army soldiers are dispersed across the south’s western sector, Israeli troops remained in control of most of the southeastern sector.

Members of the UN peacekeeping mission in Lebanon, known as UNIFIL, said Israeli tanks and bulldozers have unexpectedly moved and set up several roadblocks, apparently in an attempt to prevent displaced Lebanese people trying to return to their villages.

In Mais al-Jabal, peacekeepers from a Nepalese battalion watched in their position along the UN-mandated Blue Line as an Israeli jet flew overhead following the sound of what they said was an Israeli controlled demolition of a building.

There are no residents left in that town and the vast majority of the buildings seen by Associated Press journalists were reduced to rubble or pancaked after intense Israeli shelling and airstrikes, following by clashes during its ground invasion. The few that stood had their walls blown out and are badly damaged. The piles of rubble and debris on the road make it impossible for civilian cars to enter the town that once was home to a few thousand people.

The scene is similar in neighboring towns, including Blida and Aitaroun, where almost all the structures have collapsed into mounds of rubble and no residents have returned.

The peacekeepers tried to appeal for permission to move across the roadblocks, but were not authorized to do so. An AP crew that had joined UNIFIL on patrol was stranded as a result.

“There is still a lot of IDF (Israeli army) activity going on in the area,” said Maj. Dinesh Bhandari of UNIFIL’s Nepalese battalion in Mays al-Jabal overlooking the Blue Line. “We are waiting for the deconfliction and then we will support to deploy the LAF (Lebanese army) in that position.”

When asked about weapons belonging to Hezbollah, Bhandari said they had found caches of weapons, munitions and mines in some structures during their patrols.

Israel says it has been taking down the remaining infrastructure left by the Hezbollah, which has a strong military and political presence in the south. Israel since its ground incursion into Lebanon said it also targeted a tunnel network, and has conducted large-scale demolition of buildings in a handful of border towns.

Lebanese officials have complained that the Israeli military is also destroying civilian homes and infrastructure.

In a call with French President Emmanuel Macron on Saturday, Lebanese President Joseph Aoun pointed to the “destruction of villages adjacent to the southern border and the bulldozing of lands, which will hinder the return of residents to their areas,” according to the state-run National News Agency. France, along with the US, is a guarantor of the ceasefire deal.

Some 112,000 Lebanese remain displaced, out of over 1 million displaced during the war. Large swaths of southern and eastern Lebanon, as well as Beirut’s southern suburbs were destroyed in Israeli bombardments.