Miqati Gives Wednesday Ultimatum to Resolve Project Funding

Prime Minister Najib Miqati gave an ultimatum to cabinet ministers to resolve the controversial funding of state projects by next Wednesday, media reports said.

Beirut dailies quoted on Thursday sources as saying that Finance Minister Mohammed Safadi proposed in coordination with Miqati the allocation of 100 million dollars as treasury loans to carry out development projects in their hometown of Tripoli in the North.

Although several March 8 ministers approved the plan, they rejected the implementation of the projects through treasury loans, saying that was an illegal move.

The dispute drew the ire of Miqati, who said the government should settle the funding of state projects by next Wednesday.

“Either there is a government or not,” Miqati reportedly told the ministers. “The cabinet can’t rule without being capable of spending … Wednesday should be a decisive step” to resolve the issue.

Sources close to the premier also quoted him as saying that Miqati won’t call for a new session if the funding problem wasn’t settled.

After a long debate, the cabinet “approved in principal to implement development projects in Tripoli worth LL150 billion and decide on the source of the funding during the next session” that is set to be held at Baabda palace on Wednesday.

The cabinet was initially set to discuss the draft state budget of 2012. But the security and political situation was the major focus of discussions.

Lebanon has been without an official state budget since 2005. The most controversial item of the 2012 draft is a proposal by Safadi to increase the Value Added Tax from 10 to 12 percent.