Friday , July 30 2021

We do not recommend privatization and the best is to start political reform

In a speech at a Progressive Socialist Party seminar on "Privatization and Partnership", the head of the General Labor Union, Bishara Asmar, noted that "public-private partnership contracts exist in Lebanon before legal adoption, which have proven unsuccessful and deplete public funds without benefits anything, such as contracts with Suclin, cellular companies and service providers in electricity, electricity maintenance and natural site investment (Jeita Grotto) and free markets at Beirut airports and others, which are the highest costs in the world for services that are not best explained if not more. "

He pointed out that "privatization and partnerships as other aspects and as a precursor to that are not recommended at least for now, where the country is full of corruption and chaos, and can turn into a judgment of never ending calculations and agreements and where it ends that the state property flies without adequate compensation, then the administrator before doing this might calculate the adventure. "

He stressed that "the proposed mechanism for partnerships with the private sector will not go through the condition book sent to the Distribution Department, which will occur that any public institution or municipality or ministry wants to carry out work and projects, will be presented through competent ministers or through the Supreme Council for Privatization and Partnership and progress the Company offers different offers, the Supreme Council chooses the best offer among them and is approved by the Council of Ministers, which raises several questions in the favoritism and quality of work provided by private companies. "He said that" banks will be one of the main beneficiaries of implementing this law, you can liquidate a portion of accumulated deposits Through private sector financing, for higher interest rates than government bonds, while workers and low-income citizens are the most important the effect of the reflection of these contracts on the price of services to be provided, the interest on loans given is higher, "The law does not specify anything related to the Lebanese labor force. In the oil law, for example, 80 percent of Lebanese workers are appointed. Where is the ratio in privatization and partnership law? "

Asmar called on the name of the Trade Union to "reconsider this law in accordance with the reservation stated, under the heading that the country has few financial resources, and that the national need to modernize infrastructure and the economy is urgent. Besides supporting international institutions, the private sector allowed to control institutions and projects that benefit the public, and the public sector gradually turns into a tool in the hands of the private sector, all without the reforms needed or least needed by the three Paris conferences, and we are at the fourth gate, "This acknowledges corruption rampant in institutions without moving to the public, creating a corrupt climate for large-scale joint ventures, which the IMF has repeatedly warned. "

Al-Asmar said that "this partnership aims to hide the increase in public debt and grant privileges, obligations and contracts to the private sector, contrary to the provisions of the constitution and applicable laws. It also transfers power from the Council of Ministers to the Supreme Council for Privatization and Partnerships, strengthen the power of the Prime Minister at the expense of the powers of the minister concerned, and cancel legally mandated roles managing tenders in public contracts and the role of regulators from various sectors. And the need to emphasize the work of Lebanese people to gain financial benefits to contribute to revitalization economic movement and to reduce unemployment problems "" Rather than encouraging the private sector to carry out investment projects that contribute to the accumulation of more capital, create jobs, increase income and drive the economic cycle, laws focusing on transferring control over existing or available capital from the state to the private sector, banks must use their cumulative liquidity after banking assets exceed 400% of GDP. "

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