House gives strong backing to telecoms law
Zeina Abu Rizk
Daily Star staff Feuding between Baabda and Koraytem
over the cellular network failed to stall Parliament Wednesday, with MPs endorsing a
controversial draft to privatize the telecommunications sector by a large majority.
On the second of its two-day legislative session, Parliament also moved to contain the
crisis provoked by its ban on diesel-operated mini-buses by approving a draft that commits
the government to buying and re-exporting all of the concerned vehicles, believed to
number 4,000.
Legislators also recommended the import of green diesel for trucks and public
transportation vehicles, while the government promised to abide by this recommendation to
use the cleaner fuel.
Nijmeh Square also saw the easy endorsement of massive draft legislation dealing with the
environment, described by Speaker Nabih Berri as one of the most important bills
issued this year.
The telecommunications draft sets the rules for partial or complete privatization of the
sector or its management and stipulates the governments role in this field.
It was opposed only by Baalbek-Hermel MP Hussein Husseini, who argued that the draft was
unconstitutional, Zahle MP George Kassardji, and Hizbullahs Loyalty to the
Resistance bloc.
Despite a lengthy debate of more than three hours, the bill was finally endorsed without
any major amendments being made to the original text.
Disagreements did erupt over the role of the Higher Council for Privatization, with the
speaker trying to limit the role of the council, over which Prime Minister Rafik Hariri
has major influence. Discussions ended with a reassertion by the speaker that the council
will have no say over the privatization of the sector.
The draft on diesel-operated mini-buses was the outcome of consultations over the past 24
hours and reflected a desire by all to cooperate and contain protests over the July 15
ban.
It is the government that stands behind this draft, Hariri said, but he also
warned that the tab for the measure will fall on society.
The draft stipulates that the government buy the affected vehicles, but did not set a
specific deadline for the buyout.
Hariri rejected the idea of a deadline, arguing it would lead the private sector to
pressure the government for immediate payment. Under the draft, funds to cover the
difference between the purchase and resale price will be secured from this years
budget.
Hariri proposed that the most needy drivers would get immediate advances, which would be
deducted from the eventual total payment.
Those wishing to change their diesel engines to gasoline-powered ones or wanting to
replace their mini-buses with small vehicles will be paid compensation immediately, the
premier said.
Berri promised that Parliament will issue a recommendation for the government to import
green diesel for trucks and public transport and Hariri pledged that his
government would follow this recommendation to the letter.
Berri added that other sources of pollution will also be targeted, mentioning for the
second day in a row the Zouk electricity plant and the Zahrani refinery. Berri also said
some electricity plants have been built to operate on gas but are now functioning on
diesel a move the speaker called unacceptable.
The diesel issue also awakened the dormant tensions between the premier and Hizbullah. To
Hizbullah MPs who called for immediate compensation for affected drivers, Hariri responded
that some political forces are behind the ongoing crisis over the ban. These
forces have been asserting that the law banning diesel will never be implemented, Hariri
said in an apparent reference to Hizbullah.
The telecommunications draft stipulates that a committee be formed to structure and
organize the sector. The committee will comprise a chairman and four members, all of whom
must hold degrees in telecommunications, economy, business, law or finance, and will be
appointed on a five-year basis on the recommendation of the telecommunications minister.
The new cellular company will choose some of its employees from those currently working at
the ministry and telephone maintenance company Ogero. Some of those not chosen will remain
on tenure at the ministry, while others will be recruited by the new committee organizing
the sector.
Any left over will be deemed surplus employees and be subject to the same conditions that
currently apply.
Employees wishing to resign and whose resignation is accepted will be paid additional
compensation. Those having worked with the ministry or Ogero for five years or less will
receive two months salary for each year of service, provided the total does not
exceed LL50 million.
Resigning employees with more years of service will receive their salaries and indemnities
for 30 months, with a LL200 million ceiling on the total figure.
The draft also stipulated that the investor who wins the sell-off will become the
governments strategic partner and will be charged with the sectors
management as long as he maintains his controlling interest.
The role of the Higher Council for Privatization was a hot button, with tensions
emerging between Baabda and Koraytem. The council roles came up during a
discussion over Article 19, which stipulates that any license authorizing a company to
provide telecommunications services be issued by virtue of a Cabinet decree after an
auction, and on the basis of a proposal by the concerned minister. These services,
according to the article, would extend to land, cellular and international lines.
Hariri asked that the role of the council in the issuing of licenses be specified, adding
that the newly formed organizing committee is not entitled to issue licenses.
Berri responded that the Higher Council for Privatization has no role in this
legislation.
The speaker also asked: What is the use of having a special committee and the
Cabinet involved in the organization of the sector if we have to resort to the
Higher Council for Privatization? He added that he did not mind abolishing the
committee called for by the draft if politicians insist on giving the nod to the council.
The session was also marked by Husseinis attack on the Constitutional Council, which
has rejected most of the former speakers challenges, including a recent one against
a law calling for the opening of a special account in the Central Bank for public
debt-servicing.
Husseini called the telecommunications law unconstitutional, arguing that efforts to
exploit a public utility should be sanctioned by law and not through a decree, as
stipulated by the legislation. But I wont submit a challenge against the
draft, neither do I advise the opposition to do so, the MP said.
Husseini, whom Berri blamed for criticizing the judiciary, said the Constitutional
Council is not a judicial authority, and this is why I authorize myself to comment on its
decisions.
Berri protested the MPs remarks, saying: You (Husseini) are the one who, every
now and then, reminds us of the Taif Accord and its contents. The Constitutional Council
is a derivative of the Taif Accord and is a judicial authority.
A draft calling for reducing the years of imprisonment for convicts who showed good
behavior was sent back to Parliaments joint committees, after some MPs argued that
the draft would only be acceptable if it specified some exceptions for possible reduction.
Hizbullah MPs mentioned in particular cases of high treason or conspiracy against the
state an implicit allusion to former members of the South Lebanon Army, Israels
proxy militia during its occupation of the South.
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