Tensions between Berri, ABL over Wage Scale Funding Eased following Talks with Khalil

Tensions between Speaker Nabih Berri and the Association of Banks in Lebanon eased on Friday after signs of a dispute were beginning to emerge between the two sides over the funding of the new wage scale.

The speaker had earlier during the day refused to meet with the ABL before its apologizes for its stance concerning the tax measures proposed by the joint parliamentary committees to fund the new wage scale.

“Berri will not meet with the delegation unless the head of the ABL, Francois Bassil, apologizes publicly to the press over the attack launched by him against lawmakers and the parliament,” the state-run National News Agency reported.

The ABL chief later however held talks with AMAL Minister Ali Hassan Khalil in an effort to ease the tensions.

He described the talks as “positive”, adding: “The ABL has always supported the state... We hope that the state doesn't give up on us.”

Bassil expressed hope that Berri resolves the dispute between the Economic Committees and the Syndicate Coordination Committee, urging him to act wisely to end the crisis.

The ABL voiced its opposition to the taxes proposed by lawmakers to cover the expenses of the new salary scale that the SCC is demanding its endorsement by the parliament.

Most banks in Lebanon closed their branches across the country to protest against the matter.

Later NNA reported that AMAL Movement MP Hani Qobeissi filed a complaint against the ABL chief for accusing lawmakers of theft and embezzlement of public funds, but he later halted the charges following Bassil's talks with Khalil.

Qobeissi noted however that the lawsuit has not yet been dropped.

“We reserve the right to continue with the complaint until Bassil retracts his remarks against every politician in Lebanon,” he said.

Khalil meanwhile said that the decision to drop the lawsuit lies in Berri's hands “because Bassil's insult was directed parliament as an institution.”

For his part, Bassil denied after talks with Khalil that he had accused MPs of anything, noting that he only demanded an “administrative reform.”

“Thursday's statement only reflects my own opinion,” he said in a press conference, warning that “the tax measures are being imposed in a hard economic situation.”

“Lawmakers should defend us, they are our representatives at the parliament,” Bassil said.

He described the new wage scale as “a righteous demand but trying to end the crisis in this way will impact the banks.”

Bassil stressed that the new wage scale “should be studied thoroughly with the Economic Committees and the ABL.”

He had warned in remarks to An Nahar newspaper on Friday of a “revolution against politicians in Lebanon, who bankrupted Lebanon.”

“Increasing taxes on deposit interest revenue will not have a direct impact on banks,” he pointed out, saying that “the measure would affect new investments and deposits.”

The joint parliamentary committees agreed during a session on Thursday to raise the 5 percent tax on deposit interest revenue to 7 percent.

The Economic Committees, which also reject the new wage scale, held an emergency meeting on Thursday in order to study the “catastrophic tax measures” adopted by the joint parliamentary committees and their effects on the national economy.

The SCC had warned of escalation in the protests, of an open-ended strike and of boycotting the correction of official exams if the parliament fails to endorse the new wage scale that the joint parliamentary committees are studying ways to fund it.

Former Prime Minister Najib Miqati's cabinet approved in 2012 a new salary scale for public employees ending a long dispute that had prompted the SCC to hold several sit-ins and strikes.

President Michel Suleiman signed the decree mid-June 2013 and it was referred to the joint parliamentary committees for further scrutiny.

The wage increase will be retroactive from July 1, 2012.

The state treasury will have more than $1.2 billion to cover as there are over 180,000 public sector employees including military personnel.

- H. K.

- M. T.