LCCC ENGLISH DAILY NEWS BULLETIN
February 28.2020
Compiled & Prepared by: Elias Bejjani
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Bible Quotations For today
Enter through the narrow gate. For wide is the gate and
broad is the road that leads to destruction, and many enter through it. But
small is the gate and narrow the road that leads to life, and only a few find it
The Narrow and Wide Gates
Matthew07/13-27: “Enter through the narrow gate. For wide is the gate
and broad is the road that leads to destruction, and many enter through it. But
small is the gate and narrow the road that leads to life, and only a few find
it.
True and False Prophets
“Watch out for false prophets. They come to you in sheep’s clothing, but
inwardly they are ferocious wolves. By their fruit you will recognize them. Do
people pick grapes from thornbushes, or figs from thistles? Likewise, every good
tree bears good fruit, but a bad tree bears bad fruit. A good tree cannot bear
bad fruit, and a bad tree cannot bear good fruit. Every tree that does not bear
good fruit is cut down and thrown into the fire. Thus, by their fruit you will
recognize them.
True and False Disciples
“Not everyone who says to me, ‘Lord, Lord,’ will enter the kingdom of heaven,
but only the one who does the will of my Father who is in heaven. Many will say
to me on that day, ‘Lord, Lord, did we not prophesy in your name and in your
name drive out demons and in your name perform many miracles?’ Then I will tell
them plainly, ‘I never knew you. Away from me, you evildoers!’
The Wise and Foolish Builders
“Therefore everyone who hears these words of mine and puts them into practice is
like a wise man who built his house on the rock. The rain came down, the streams
rose, and the winds blew and beat against that house; yet it did not fall,
because it had its foundation on the rock. But everyone who hears these words of
mine and does not put them into practice is like a foolish man who built his
house on sand. The rain came down, the streams rose, and the winds blew and beat
against that house, and it fell with a great crash.”
Titles For The Latest English LCCC Lebanese & Lebanese
Related News & Editorials published on February 27-28/2020
Third Coronavirus Case Confirmed in Lebanon
Hassan: Lebanon Strengthens Health Control at Border
Lebanese Embassy in Tehran Calls on Nationals to Travel Back
U.S could sanction corrupt politicians, says Schenker
Lebanon begins ‘historic’ offshore oil drilling amid crisis
Suspected Israeli strike 'kills senior Hezbollah official' in Syria
Aoun Discusses Monetary Situation with Salameh
Bassil Calls for Protecting Oil from Domestic Corruption, Foreign Greed
Aoun Launches Drillship Work, Diab Says Economic Hope Grows
Sayegh on Exploratory Oil Drilling: Do Not Exaggerate
Lebanon to Request 7-day Grace Period for March Eurobonds
Syrian Linked to Hizbullah Killed near Golan Heights
No More Dollars … Lebanon’s Migrant Workers Hit by Financial Crisis
Watani: a Lebanese exhibition for local brands
Berri invites House committees for joint session Wednesday
Bahrain: Suspension of all flights to and from Iraq and Lebanon until further
notice
Diab launches Twitter account for citizens to share proposals on confronting
challenges
Army chief meets Ambassadors O'Neill, Lamoureux
Rahi, Ferzli talk latest developments
Rampling from Baalbek: Economic times are tough, UK delivering further support
Activists stage sit in outside Justice Palace in soildarity with Raidy, Sadek
Bukhari meets with US Ambassador
Audeh meets UAE ambassador, Hasbani
Borrell upon world NGO Day: EU committed to the protection and empowerment of
civic actors
Moucharafieh meets French Foreign Ministry delegation
Lebanon crisis: the Maronite church is at odds with the state/Michael Young/The
National/February 27/2020
USA Treasury Designates Martyrs Foundation Companies and Officials as Global
Terrorists
Titles For The Latest English LCCC Miscellaneous Reports And News published on
February 27-28/2020
Israeli Sources: Netanyahu Did Not Heed Oman's Proposal to Meet Abbas in
Muscat
Days before Poll, Israel Approves Nearly 1,800 New Settler Homes
Russia Accuses Turkey of Violating Syria Deal, Supporting Rebels with Artillery
Iraq Parliament Postpones Confidence Vote over Quorum
Turkish army firing on Russian planes in Syria’s Idlib, says Russian state TV
Three more Turkish soldiers killed in Syria’s Idlib: Erdogan
Qaeda, ISIS Affiliates Team Up in West Africa
German President Heads to Khartoum Amid Investment Promises
US blacklists Iraqi Shiite paramilitary chief after base attacks
New Leader Takes Helm of Iranian Proxy Forces in Iraq
Rocket Fire Hits Libyan Capital's Airport
Saudi Arabia halts entry for Umrah in Mecca, tourism from coronavirus-hit states
Iranian Vice President Masoumeh Ebtekar tests positive for coronavirus: Report
1,296 Coronavirus Cases Recorded Globally in 24 Hours
WHO Says Virus at 'Decisive Point' as World Battles Spread
Titles For The Latest LCCC English analysis & editorials from miscellaneous
sources published on February 27-28/2020
The Iran nuclear front: From deterioration to deadlock/Jerusalem Post/February
27/2020
Israel's Election: What Do the Iranians and Palestinians Want?/Bassam Tawil/Gatestone
Institute/February 27/2020
Iran's Election Result Has Seriously Undermined the Ayatollahs' Credibility/Con
Coughlin/Gatestone Institute/February 27/2020
Islamic Jihad rises with Iranian-Syrian support/Sami Moubayed/The Arab
Weekly/February 27/2020
The unintended consequences of Khamenei’s latest power grab/Dr. Majid Rafizadeh/Arab
News/February 27/2020
Qatar’s role deepening the Palestinian political crisis/Dr. Hamdan Al-Shehri/Arab
News/February 27/2020
Mubarak’s positive traits worth remembering/Dr. Dania Koleilat Khatib/Arab
News/February 27/2020
Why Germany’s political machinations matter to the world/Cornelia Meyer/Arab
News/February 27/2020
Turkish-Russian tensions over Syria about to come to a head/Talmiz Ahmad/Arab
News/February 27/2020
Coronavirus calculus: Unpacking the economic costs of pandemics/Omar Al-Ubaydli/Al
Arabiya/February 27/2020
Lessons from Warren Buffet’s ‘urgent zone’ and managing coronavirus risk/Oliver
Schutzmann/Al Arabiya/February 27/2020
The Latest English LCCC Lebanese & Lebanese Related News &
Editorials published on February 27-28/2020
Third Coronavirus Case Confirmed in Lebanon
Naharnet/February 27/2020
Lebanon on Thursday confirmed its third coronavirus case, saying the person
infected is an Iranian man. A statement issued by the Health Ministry said the
77-year-old Iranian had arrived in Lebanon aboard an Iranian plane that landed
in Beirut on February 24. “He was brought from his home via the Lebanese Red
Cross once he showed minor symptoms and he is currently in an isolation room at
the Rafik Hariri University Hospital,” the statement said, adding that his
condition is “stable.”Lebanon’s first two infected people – two Lebanese women
-- had arrived aboard another Iranian plane earlier this month.
Thousands of Lebanese travel to Iran every year to visit Shiite holy sites in
Qom and other cities. The Rafik Hariri University Hospital, a state-run hospital
in Beirut, meanwhile announced Thursday that it examined 40 people for the virus
over the past 24 hours, keeping nine of them in the coronavirus ward and asking
the others to isolate themselves at home. “35 people meanwhile underwent lab
tests and tested negative as eight people were discharged from the coronavirus
isolation ward and asked to stay home for 14 days after they tested negative
twice,” the hospital added. “Until the moment, there are 12 cases in the
quarantine zone, knowing that they have tested negative,” the hospital said,
adding that the three infected people in the isolation unit are “in a stable
condition and are receiving the necessary treatment.”
Hassan: Lebanon Strengthens Health Control at Border
Naharnet/February 27/2020
Health Minister Hamad Hassan stressed on Thursday that strict measures have been
imposed on Lebanon’s land borders to counter the deadly Coronavirus threat that
killed thousands globally. “Lebanon is strengthening measures on the border to
confront the virus. Today, we will inspect the measures in place at the Masnaa
border crossing (with Syria) to protect the Lebanese community,” said Hassan
speaking during a visit to Baalbek Government Hospital. On the measures taken at
Beirut’s Rafik Hariri International Airport, Hassan said the measures were
“highly praised by international sides. Some mishaps must not label the whole
process as negative. The health situation in Lebanon is a red line.”A viral
Coronavirus outbreak that began in China has infected more than 82,000 people
globally. Lebanon has recorded two cases in one week.
Lebanese Embassy in Tehran Calls on Nationals to Travel
Back
Naharnet/February 27/2020
The Lebanese Embassy in Iran urged Lebanese nationals there to take “caution”
against Coronavirus risks and to book tickets back to Lebanon “as soon as
possible.”The embassy asked Lebanese nationals in “various provinces and cities
of Iran to exercise the utmost caution because of the Coronavirus threat, and to
follow the medical and health instructions announced by the Iranian Ministry of
Health and the World Health Organization.”It also called on “Lebanese in Iran
who wish to return back home, to book tickets on the next two flights directly
from Tehran to Beirut scheduled on March 2 and 4.”The coronavirus epidemic in
Iran has cost 26 lives, and 106 more cases of the disease had been confirmed on
Thursday, raising the tally of infections to 245, the highest outside China
where COVID-19 originated. Lebanon recorded two cases of the disease in one week
in Lebanese women who had traveled from Qom in Iran.
Lebanese had asked authorities to ban flights coming from infected countries and
to follow suit the measures adopted in other states. On Tuesday, the Cabinet
decided to restrict travel to countries witnessing major coronavirus outbreaks
and to order a halt to pilgrimage trips.
The viral outbreak began in China and has infected more than 82,000 people
globally. The World Health Organization has named the illness COVID-19,
referring to its origin late last year and the Coronavirus that causes it.
U.S could sanction corrupt politicians, says Schenker
Annahar Staff/ February 27/ 2020
Speaking to The National, Schenker said that targetting corrupt members of
Lebanon's political class is a possibility under the Global Magnitsky Act.
BEIRUT: Assistant Secretary of State David Schenker hinted Wednesday at
anti-corruption sanctions targetting Lebanese politicians, as his government
intensified pressure on the Iranian-backed militant group Hezbollah's financial
network. Speaking to The National, Schenker said that targetting corrupt members
of Lebanon's political class is a possibility under the Global Magnitsky Act.
“It is something important for us and something we are working through right
now,” he said. The U.S Treasury had earlier slapped sanctions on 15
Lebanese entities and individuals linked to the group’s Martyrs Foundation.
“Hezbollah profits from the sale of goods vital to the Lebanese peoples’ health
and economy, such as pharmaceuticals and gasoline,” said Treasury Secretary
Steven Mnuchin. “The Trump Administration stands with the Lebanese people, and
we are committed to exposing and holding accountable Hezbollah’s terror-funding
business schemes.”The companies targetted are Atlas Holding, Medical Equipment
and Drugs International Corporation (MEDIC), Shahed Pharm, Amana Fuel Co., Amana
Plus, Al Kawthar, Amana Sanitary and Paints Company LTD, City Pharma SARL.,
Global Touristic Services SAL., Sanovera Pharm Company SARL, Mirath and Capital
SA. Three Hezbollah affiliates were also sanctioned: Kassem Mohamad Ali
Bazzi, identified as a leader or official of Atlas Holding; Jawad Nur Al Din,
identified as a leader or official of the Martyrs Foundation and Sheikh Yusuf
Aasi, identified as a leader or official of the Martyrs Foundation. According to
the US Treasury, Atlas Holding “banked freely at [the now liquidated] Jammal
Trust Bank (JTB), despite their open affiliation with previously designated
Hezbollah entities”.
JTB was targetted late last year and is currently undergoing liquidation. The
bank denied all charges.
Lebanon begins ‘historic’ offshore oil drilling amid crisis
Aassociated Press/February 27/2020
Experts say it would be years before the country could start extracting and
reaping the benefits of any oil found in its waters, should any be found.
Beirut: Lebanon’s president Thursday inaugurated the Mediterranean country’s
first offshore exploratory drilling for oil and gas, calling it a “historic day”
for the cash-strapped country. Michel Aoun spoke aboard the drillship Tungsten
Explorer, which will be conducting the drilling operations of the first
exploration well, located approximately 30 kilometers (18 miles) offshore from
the capital Beirut. “Today is a happy day for us and for all Lebanese, and we
hope the dream we’ve all imagined is realized today. It is a historic day,” he
said. The ceremony at sea contrasted sharply with Lebanon’s crippling financial
and economic crisis, including a deepening liquidity crunch and soaring public
debt. The limits have prompted protests against the financial institutions —
including violent attacks on ATM machines and some bank branches. Lebanon has
one of the highest debt to GDP ratios in the world, standing at about $87
billion or more than 150% of the country’s GDP. Teetering on economic and
financial collapse, the Lebanese government is now considering whether to pay or
default on its $1.2 billion Eurobond debt, which matures next month. Lebanon has
never defaulted on its debt payments. Defaulting could be costly to the national
economy and banking system, which until the recent financial crisis was one of
Lebanon’s most profitable and reputable sectors. Experts say it would be years
before the country could start extracting and reaping the benefits of any oil
found in its waters, should any be found. On the ship, Prime Minister Hassan
Diab said the exploratory drilling “offered a ray of light amid the darkness”
and hoped it was the beginning of a transformation that would see Lebanon become
an oil country. The media office of Lebanon’s Energy Minister said the
excavation work will start in a few days, after receiving drilling equipment and
supplies from the logistics base at Beirut port. In 2017, Lebanon approved the
licenses for an international consortium led by France’s Total, Italy’s ENI and
Russia’s Novatek to move forward with offshore oil and gas development for two
of 10 blocks in the Mediterranean Sea, including one that is partly claimed by
Israel. Total said the first well will be drilled at a depth of 1,500 meters
(4,920 feet). The exploration well aims at exploring targets located more than
2,500 meters (8,200 feet) below the sea bed. The drilling of the well is
estimated to last two months, after which the drillship will leave Lebanon,
Total said. At a later stage that hasn’t yet been scheduled, drilling should
begin in Block 9, part of which Israel also claims. A major find in Lebanon’s
southernmost waters could raise the possibility of a dispute with Israel.
The U.S. has been mediating between Lebanon and Israel over the nearly 860
square kilometers (330 square miles) of the Mediterranean Sea claimed by both
countries.
Suspected Israeli strike 'kills senior Hezbollah official'
in Syria
The New Arab/February 27/2020
A suspected Israeli missile strike on a car near the occupied Golan Heights in
Syria has reportedly killed a senior Hezbollah official, media reported on
Thursday. Syrian state TV reported that an Israeli drone targeted the vehicle
near the southern village of Hader in the Quneitra region.
There was no immediate comment from Israel about the attack. Israeli media
reported that Aymad Al-Tawil, a senior Hezbollah member, was travelling in the
car when it was targeted by the drone. He was involved in organising Hezbollah
cells in Syria to launch cross-border attacks on Israel, Channel 13 reported.
Israel has repeatedly struck Iran-linked targets in Syria in recent years
including militia targets in the east of the country, warning it will not allow
the Islamic Republic to build a permanent military presence in the country. A
Syrian military statement reported this week that an Israeli attack near
Damascus International Airport had taken place and that its air defences
confronted fire coming from the direction of the Israeli-occupied Golan Heights.
It said the defenders intercepted or shot down most of them. In a rare
acknowledgement of operations in neighbouring Syria, Israel said its warplanes
attacked targets late Sunday of the Palestinian militant Islamic Jihad group,
south of Damascus, in addition to sites in the Gaza Strip. It said the sites
attacked were used for "research and development of armaments" manufactured in
Syria and Gaza and had allegedly produced dozens of kilograms (pounds) of rocket
fuel each month.
Aoun Discusses Monetary Situation with Salameh
Naharnet/February 27/2020
President Michel Aoun met with Central Bank Governor Riad Salameh at Baabda
Palace where discussions focused on the monetary situation in Lebanon, the
National News Agency reported on Thursday. The meeting comes as Lebanon grapples
with means to address its spiraling economic crisis, a debt burden among the
largest in the world and a liquidity crunch that made banks impose tough
restrictions on dollar withdrawals. Lebanon’s government faces a $1.2 billion
debt payment on Eurobonds that reach maturity on March 9. Economists, investors
and government officials are divided over what to do with the March bond
payment. Prime Minister Hassan Diab met last this week with a delegation from
the International Monetary Fund to discuss how to tackle the country's spiraling
economic crisis.
Bassil Calls for Protecting Oil from Domestic Corruption,
Foreign Greed
Naharnet/February 27/2020
Free Patriotic Movement chief MP Jebran Bassil on Thursday called for protecting
Lebanon’s oil and gas resources from “domestic corruption and foreign greed.”
Reminiscing the efforts of ten years that eventually led to the launch of
offshore oil and gas drilling, Bassil said some parties “ridiculed” the endeavor
and voiced skepticism “but the dream has become reality.” Noting that some had
sought to “obstruct” the exploration efforts, Bassil stressed in a tweet that
“entire Lebanon will benefit” from the development. Earlier in the day,
President Michel Aoun inaugurated the country's first offshore exploratory
drilling for oil and gas, calling it a "historic day" for cash-strapped Lebanon.
Experts say it would be years before the country could start extracting and
reaping the benefits of any oil found in its waters, should any be found.
Aoun Launches Drillship Work, Diab Says Economic Hope Grows
Associated Press/Naharnet/February 27/2020
President Michel Aoun on Thursday launched the work of a French ship that will
drill for oil and gas in block 4 of Lebanon’s Exclusive Economic Zone. “Today is
a happy day for us and for all Lebanese. We hope the dream which we sought to
achieve will be realized. Today is a historic day,” Aoun said at the ceremony.
Thanking the Total, Eni and Novatek firms for their efforts, the president hoped
there will be “cooperation with them in other fields in Lebanon’s Exclusive
Economic Zone.”Prime Minister Hassan Diab for his part said that “from the
middle of complete darkness, today a large window of light is being opened.”“It
increases hope that Lebanon would overcome the severe economic crisis,” he said.
“It is a historic day on which we start drilling offshore to turn Lebanon into
an oil producing country,” the premier added.
The ceremony at sea contrasted sharply with Lebanon's crippling financial and
economic crisis, including a deepening liquidity crunch and soaring public debt.
The limits have prompted protests against the financial institutions --
including violent attacks on ATM machines and some bank branches. Lebanon has
one of the highest debt to GDP ratios in the world, standing at about $87
billion or more than 150% of the country's GDP. Teetering on economic and
financial collapse, the Lebanese government is now considering whether to pay or
default on its $1.2 billion Eurobond debt, which matures next month.
Lebanon has never defaulted on its debt payments. Defaulting could be costly to
the national economy and banking system, which until the recent financial crisis
was one of Lebanon's most profitable and reputable sectors. Experts say it would
be years before the country could start extracting and reaping the benefits of
any oil found in its waters, should any be found. The media office of Lebanon's
Energy Minister said the excavation work will start in a few days, after
receiving drilling equipment and supplies from the logistics base at Beirut
port. In 2017, Lebanon approved the licenses for an international consortium led
by France's Total, Italy's ENI and Russia's Novatek to move forward with
offshore oil and gas development for two of 10 blocks in the Mediterranean Sea,
including one that is partly claimed by Israel. Total said the first well will
be drilled at a depth of 1,500 meters (4,920 feet). The exploration well aims at
exploring targets located more than 2,500 meters (8,200 feet) below the sea bed.
The drilling of the well is estimated to last two months, after which the drill
ship will leave Lebanon, Total said. At a later stage that hasn't yet been
scheduled, drilling should begin in Block 9, part of which Israel also claims. A
major find in Lebanon's southernmost waters could raise the possibility of a
dispute with Israel. The U.S. has been mediating between Lebanon and Israel over
the nearly 860 square kilometers (330 square miles) of the Mediterranean Sea
claimed by both sides.
Sayegh on Exploratory Oil Drilling: Do Not Exaggerate
Naharnet/February 27/2020
Democratic Gathering Parliamentary Bloc MP Faysal al-Sayegh downplayed what he
said are “exaggerations” that Lebanon can be listed among oil- producing
countries, saying it is still early to know that.
“What is happening today off the Lebanese coast is exploratory drilling
operation to know whether there is gas in commercial quantities or not! Lebanon
is still in a ‘Fish in the Sea’ stage,” said Sayegh. The MP was referring to
President Michel Aoun’s announcement on Wednesday that Lebanon will witness a
“historic day” Thursday with the official launch of offshore oil and gas
drilling. Sayegh said Lebanon still has “about $ 50 billion lost in depositors'
money, billions of Eurobonds due within 10 days, an international monetary fund
shocked by our inability to draw a rescue plan, and indifference to our support
by the Gulf brothers, adding to Coronavirus from Iran, and escalating US
sanctions.”“So please do not exaggerate the Lebanese way, but instead start
devising realistic solutions to our problems with the available practical
capabilities, do not trade and mortgage our oil wealth have mercy on our
children and future Lebanese generations,” he concluded.
Lebanon to Request 7-day Grace Period for March Eurobonds
Naharnet/February 27/2020
Lebanon plans to request a seven-day grace period to decide on restructuring a
plan for it Eurobond debt maturing on March 9, media reports said on Thursday.
The government is weighing whether to pay or default on its $1.2 billion
Eurobond debt, which matures next month, amid an economic crisis that has
sparked months of unrest. A government source who spoke on condition of
anonymity said Lebanon is entitled to ask for grace period to give financial
advisers more time to devise a restructuring plan for the debt.
Syrian Linked to Hizbullah Killed near Golan Heights
Agence France Presse/Naharnet/February 27/2020
A Syrian linked to Lebanon's Hizbullah was killed in a cross-border Israeli
drone strike Thursday that targeted his car in a village near the annexed Golan
Heights, a war monitor said. Syrian Observatory for Human Rights head Rami Abdel
Rahman told AFP that the man was killed in Haidar village in Quneitra province
of southern Syria. An informed source named the man as Imad Tawil, while Syria's
official news agency SANA said he was a civilian resident of Haidar. On Sunday
night, Israeli air strikes near Damascus killed six pro-regime fighters,
according to the Britain-based Observatory, which relies on a network of sources
inside Syria. Israel has carried out hundreds of strikes on regime targets as
well as forces of the government's Iranian and Hizbullah allies since the Syrian
conflict erupted in 2011.
No More Dollars … Lebanon’s Migrant Workers Hit by
Financial Crisis
Asharq Al-Awsat/Thursday, 27 February, 2020
Eighteen-year-old domestic worker Mary came to Lebanon to help support her
family, but now a financial crisis is preventing her from sending money home to
Ethiopia. A crippling liquidity crunch in the Mediterranean country has
drastically limited access to dollars, and tens of thousands of migrant workers
toiling for remittances in the hard currency are suffering the backlash. On a
recent Sunday, Mary strolled down a bustling street in the capital Beirut with
her girlfriends, dressed in an elegant outfit of skirt, jacket and ballerinas
for her day off.
"I used to earn 400 dollars ... but today I get my salary in Lebanese pounds,"
she told Agence France Presse. "I can't send money to Ethiopia anymore."Around
her, migrant workers of all ages flocked to shops that sell imported food or
clothes from home, the women in their Sunday best. Young men sat on the pavement
outside calling centres and restaurants, music spilling out onto the street.
The Lebanese pound used to be easily exchangeable for dollars at a fixed rate,
but now banks have capped withdrawals of the US currency and its value has
plummeted on the parallel market. The de-facto devaluation means Mary has lost
at least a third of her salary. But she insisted her employees were not to
blame. The problem, she said, "is from the state". In a wave of mass street
protests since October 17, Lebanese have railed against what they condemn as a
corrupt political class that has mismanaged the country. An estimated quarter of
a million domestic workers live in Lebanon, many in conditions that have
repeatedly been condemned by their countries of origin and rights group, who
point to the fact that many are underage. The large majority of foreign workers
hail from Ethiopia, but many also come from the Philippines, Bangladesh and Sri
Lanka. A sponsorship system known as "kafala" leaves maids, nannies and carers
outside the remit of Lebanon's labor law, and at the mercy of their employers.
Thousands more foreign men work petrol pumps, clean the streets or labour in
private businesses and restaurants.
Before Lebanon's economy went into meltdown, most of these workers earned the
equivalent of 150 to 400 dollars a month, often according to nationality. But
their salaries have now been de facto slashed. With access to dollars severely
limited and the value of the local currency tumbling, many employers have
decided to pay their employees in Lebanese pounds. Migrant workers are then
forced to exchange their local wages into foreign currency at a substantial loss
on the black market. "What will I do?" Mary asked. "My siblings are in school
and I'm supposed to help my family, but now I can't."
After years of political turmoil, Lebanon's economy is collapsing, prices have
soared, and businesses are struggling to stay open. Amandeep Singh, 23, has been
working for four years in a plant nursery north of Beirut and sent money home to
India.
He says his salary has suddenly been slashed from 500 to 360 dollars after his
employer decided to pay him half in pounds. He was told the situation would
improve soon. "I'll wait and see," Singh said. But "if there are no more
dollars, there will be nothing left for me in Lebanon. I will go home to
India."The crisis saw more than 1,000 Filipinos flock to their embassy in
December to sign up for free repatriation. The mostly female domestic workers,
some with children in tow, signed up for the free flight. Jasmin Bighoun,
32-year-old female domestic worker from Bangladesh, said she used to be able to
send 300 dollars home to the family, but now that has dropped to just 150.
"There are no more dollars and everything is more expensive. It's not the same
as before, life is hard," she said. If necessary, she and her husband will pack
up and return to Bangladesh, she said. Other migrant workers have already made
up their minds.
Nav, an 18-year-old from Ethiopia who works as a cleaner for hourly wages, said
the sacrifices are no longer worth it. "They pay me in pounds," she said.
"What's the point of staying? I want to leave."
Watani: a Lebanese exhibition for local brands
Annahar/February 27/2020
the crisis has certainly left the country deeply ravaged. This is especially
true when it comes to local brands and businesses.
BEIRUT: Lebanon has been facing a deteriorating economic crisis that has
affected all of its industries. Whether it’s the dismissal of thousands of
employees in the service industry, or the shortage in pharmaceuticals and food
staples like bread, the crisis has certainly left the country deeply ravaged.
This is especially true when it comes to local brands and businesses. However,
Lebanese brands are taking action. For the first time in Lebanon, an
all-Lebanese. Exhibition named Watani is taking place to showcase Lebanese
brands from various sectors and highlight their achievements. Organized by AR
Events in collaboration with the Association of Lebanese Industrialists (ALI),
Watani will gather over 100 Lebanese brands including big names like Ghandour,
Poppins, Snips, Cosmaline, and Fattal group. “The idea of [Watani] came out of
the need of the market,” Rouwayda Tahtouh, one of the organizers, told Annahar.
“When we saw that we had problems importing products and were thus suffering a
shortage of supplies and raw materials, we knew it was time to rely more on
local production.”Watani will be a three-day exhibition taking place on 6,7,8
March at AVA Venue Achrafieh, and will include specific-themed conferences
organized by the showcasing brands. Entrance fee is 7,000LL, and attendees get a
5,000LL voucher that allows them to buy any item they want. “This way, we
guarantee that every attendee will be purchasing an item no matter how cheap it
may be and directly support the economy,” said Tahtouh.
Berri invites House committees for joint session Wednesday
NNA/February 27/2020
Speaker of the House, Nabih Berri, has called the parliamentary committees of
Finance, Foreign Affairs, Economy, Defense, and Energy, to convene in a joint
session at 10:00 am on forthcoming Wednesday.
Bahrain: Suspension of all flights to and from Iraq and
Lebanon until further notice
NNA /February 27/2020
The Civil Aviation Affairs (CAA) in the Kingdom of Bahrain has declared the
suspension of all flights to and from the Republic of Iraq and the Lebanese
Republic until further notification, with immediate effect.
The CAA asks all citizens and residents of Bahrain who are at present in regions
influenced by the Coronavirus (COVID 19) and who were planning to come back to
the Kingdom of Bahrain to call the accompanying number +973 17227555. The CAA
attests that it is liaising with all authorities to take the vital measures
considering COVID-19. All arrivals and appearances to Bahrain International
Airport suspected of infection will be tested and, if seen as experiencing the
condition, are instantly shifted to assigned centers for segregation and
treatment.
The Civil Aviation Affairs placed emphasis on the need to abide by established
health guidelines in order to battle against COVID-19. ----Bahrain News Agency
Diab launches Twitter account for citizens to share
proposals on confronting challenges
NNA/February 27/2020
Prime Minister, Dr. Hassan Diab, has launched a new Twitter account for the
Lebanese citizens to communicate their suggestions and ideas on confronting
challenges and building a better Lebanon, as aspired by all.
The page entitled "Hassan Diab Official Team for Plans & Suggestions" holds the
motto "Communciate with us to Make Your Voice Heard."
Army chief meets Ambassadors O'Neill, Lamoureux
NNA/February 27/2020
Army Commander Joseph Aoun on Thursday welcomed at his Yarzeh office Women
Affairs, Peace and Security Ambassador, Jacqueline O'Neill, accompanied by
Canadian Ambassador to Lebanon, Emmanuelle Lamoureux, and Canadian Military
Attaché David Jones. Discussions reportedly touched on the cooperation relations
between the armies of both countries.
Rahi, Ferzli talk latest developments
NNA/February 27/2020
Maronite Patriarch Cardinal Beshara Rahi received Thursday in Bkerki Deputy
House Speaker, Elie Ferzli, with whom he discussed the current general situation
and latest developments. Speaking to reporters following the meeting, Ferzli
said talks featured high on the economic condition in the country, as well as on
the independence of the judiciary and the recovery of stolen funds.
Rampling from Baalbek: Economic times are tough, UK
delivering further support
NNA/February 27/2020
During his fourth visit to Baalbek, British Ambassador Chris Rampling toured
ongoing UK funded projects, and inaugurated new ones, underlining the UK's
unswerving support to Baalbek and its surrounding areas. Accompanied by Governor
Bashir Khodr, Ambassador Rampling attended the Lebanese Enterprise and
Employment Programme's 'UK Support To Baalbek' event for small and medium
enterprises (SMEs) at the Palmyra hotel, where he also announced the launch of a
new mobile tourism application for Baalbek. Both projects - funded by UK aid -
are aimed at creating economic opportunities and jobs, and boosting tourism to
the City of the Sun, and the surrounding areas.
Under the UK-Lebanon Year of Education 2020 launched in October 2019, Ambassador
Rampling visited Al Bashaer High School run by Al Mabarrat Association to see
the impact of UK support designed to raise the quality of education delivered to
students. The British Council has been supporting Al Mabarrat through the
Connecting Classrooms programme since 2009. Received by Col Salman Salman,
Ambassador Rampling visited Four Land Border Regiment and a Forward Operating
Base in Baalbek and saw how UK support to the Lebanese Army is securing the
borders with Syria, as the sole legitimate defenders of Lebanon. Since 2019,
Lebanon had complete authority over its border with Syria. UK support to the
Lebanese Army since 2011 has reached over $92 million.
At the end of his visit, Ambassador Rampling said: "I am pleased to be in
Baalbek again, my fourth visit since I arrived, a testimony of the importance we
place to support the city and surrounding areas. Baalbek represents a breadth of
our UK aid programmes: through education, supporting the economy, boosting
tourism and above all security which is key to the success of all our projects.
The UK recognises the deep economic challenges facing local businesses and
municipalities here in Baalbek and across Lebanon. We recognise the need for
urgent action by the Government of Lebanon to address urgent and mounting
economic pressures. We know the economic challenges are stark, and we recognise
the burden of refugees that Lebanese communities continue to bear. Since 2014,
UK aid's contribution to the Baalbek-Hermel region has been over $3.5 million,
reaching over 125,000 beneficiaries.
We are here to deliver more. Today we are investing further in Baalbek and
surrounding areas, through the Lebanon Enterprise and Employment Programme to
introduce grants to SMEs, the backbone of Lebanon' economy and crucial to the
country's economic recovery. We are keen to work more closely with its residents
to improve access to services, and to create further job opportunities.
I'm also delighted to launch with Governor Bashir Khodr a new mobile tourism
application for Baalbek to further support the economy, boost tourism to this
spectacular city, and encourage more tourists whether from Lebanon or abroad to
learn about its remarkable history. The new app can be downloaded by Android
users, and will be available on the Apple Store in due course.
We will continue to support Lebanon through our programmes that have achieved a
great deal reaching over $250 million in 2019 - in security, prosperity,
education and stability."
*British Embassy Press Release
Activists stage sit in outside Justice Palace in soildarity
with Raidy, Sadek
NNA/February 27/2020
A number of protesters on Thursday gathered outside the Justice Palace, in
solidarity with activist Gino Raidy and Media Figure Dima Sadek, NNA field
reporter said. MP Paula Yaacoubian and several social media activists were also
present.
Bukhari meets with US Ambassador
NNA/February 27/2020
Saudi Ambassador to Lebanon, Walid bin Abdullah Bukhari, on Thursday welcomed at
his Yarzeh residence, US Ambassador to Lebanon, Elizabeth Richard, upon the end
of her diplomatic mission in Lebanon.
Both Ambassadors reportedly broached the most recent developments on the
regional and international scenes, as per a statement by the Saudi Embassy Press
Office. The pair also seized the occasion to exchange views on a number of
issues of mutual concern. Ambassador Bukhari wished the outgoing US Ambassador
success in her future mission.
Audeh meets UAE ambassador, Hasbani
NNA/February 27/2020
Greek Orthodox Archbishop of Beirut and its Suburbs, Elias Audeh, on Thursday
met with UAE Ambassador to Lebanon, Hamad Saeed Al Shamsi, with whom he
discussed the current situation in the country. Archbishop Audeh then welcomed
former Vice Prime Minister, Ghassan Hasbani.
Borrell upon world NGO Day: EU committed to the protection
and empowerment of civic actors
NNA/February 27/2020
Upon the world day of non-governmental organisations, High Representative of the
European Union, Josep Borrell, maintained that the EU is committed to the
protection and empowerment of civil society actors, and lauded their
contributions to human rights and democracy.
Following is Borrell's statement:
"On world Non-Governmental Organisation Day, celebrated on 27 February, the
European Union applauds the fundamental contribution made by civil society
organisations to the promotion of human rights, good governance, democracy and
the rule of law. As such, they are key partners for the successful
implementation of the 2030 Agenda for Sustainable Development. We are witnessing
an unprecedented crackdown on civil society in many countries - restrictive
legislation on foreign funding, restrictions for registration or association of
civil society organisations, anti-protest laws, gagging laws, laws that
criminalise online dissent and expression, the blocking of access to websites
and social media and, in some cases, violent attacks and harassment.
This trend needs to stop.
The EU is committed to the protection and empowerment of civic actors, including
human rights defenders, and to the promotion of space for civil society. We will
continue to meet with human rights defenders, monitor their trials, visit them
in detention, and raise their cases with governments. The EU also supports key
international actors, such as UN Special Rapporteurs on human rights defenders,
freedom of association, and freedom of expression. The EU is the world's largest
donor to civil society. The European Instrument for Democracy and Human rights (EIDHR)
is one of the largest EU instruments dedicated to supporting civil society.
Testament to its importance, the European Commission has proposed to keep its
level of funding under next financial framework at a high level, with €1.5
billion for 2021-2027. This instrument facilitates direct cooperation with
isolated or marginalised civil society actors, including through the allocation
of direct grants to those operating in particularly difficult human rights and
democracy contexts. Since 2005, the EU has supported more than 30, 000 human
rights defenders. Today and every day, the EU stands up for a strong and
pluralistic civil society. We will continue to promote a safe and enabling
environment, in which civil society can operate free from hindrance and
insecurity."
Moucharafieh meets French Foreign Ministry delegation
NNA/February 27/2020
Social Affairs Minister, Professor Ramzi Moucharafieh, received this Thursday in
his office at the ministry, a delegation from the French Foreign Ministry,
chaired by the Director General of the French Office for the Protection of
Refugees and Stateless Persons, Julien Boucher, with whom he discussed the
current situation of refugees in Lebanon and the work of the Ministry with the
concerned international and local organizations in this dossier.
Lebanon crisis: the Maronite church is at odds with the
state
Michael Young/The National/February 27/2020
Beirut bishop's terse exchange with the country's Maronite president echoes the
Christian community's unhappiness with the elite
In early February, on the occasion of Saint Maron’s Day – celebrating the
founder of Lebanon’s Maronite Church, the spiritual authority of the country’s
largest Christian community – the bishop of Beirut Paul Abdel-Sater, spoke at a
mass in the presence of President Michel Aoun and other senior officials. The
bishop’s remarks said a great deal about how the Maronite religious hierarchy
views the months-long protests against the political class and its endemic
corruption.
“Do the tens of thousands of Lebanese who elected you not deserve a correction
to the political, economic and financial imbalance?” Bishop Abdel-Sater asked
officials at the ceremony. “Does your conscience not move you at the sight of a
mother wailing over her son, who committed suicide because he was unable to
provide for his children?” He requested that the officials “work with the true
revolutionaries [protesting the current situation] day and night" to resolve
Lebanon’s crisis, “otherwise, the most honourable thing to do is to resign".
The bishop’s remarks echoed widespread popular disgust with Lebanon’s
politicians. Yet it was still unusual to see a Maronite clergyman so boldly take
officials to task in public, in particular Mr Aoun, who is himself Maronite.
The irony is that Mr Aoun and his son-in-law Gebran Bassil have always portrayed
themselves as purveyors of a Christian revival in Lebanon
Yet there was good reason for Bishop Abdel-Sater doing what he did, at a time
when the Maronite patriarch, Bishara Al Rai, has also supported Lebanon’s
protest movement. The church is alarmed that the catastrophic social and
economic situation the country’s political elite has caused is driving youths to
leave the country. As a minority, Christians will be hit particularly hard by
this trend.
The church is correct in regarding Lebanon’s problems as having existential
implications for the country's Christians, but also in many ways for Lebanon
itself. Even the most optimistic estimates suggest that it will take years for
the country to begin emerging from its current predicaments, which means many
more young people will leave to go abroad – a process already well under way
before the crisis began.
The irony is that Mr Aoun and his son-in-law Gebran Bassil have always portrayed
themselves as purveyors of a Lebanese Christian revival. Yet a cursory look at
the presidents’ record would indicate a very different reality. When he headed a
military government in 1988-1990, Mr Aoun embarked on a pair of conflicts with
the Syrian military, then with the Christian Lebanese Forces militia, which
provoked a mass migration of Christians at the time.
Since then, the president and Mr Bassil have also contributed to creating a
highly negative climate in the country that has again undermined confidence.
With Hezbollah’s support, they blocked parliament and much of the political
system for more than two years between 2014 and 2016 as blackmail for Mr Aoun to
be elected president. That period was one in which the country was dangerously
adrift, economic conditions deteriorated, and institutions ceased to function
effectively.
Mr Aoun has rarely allowed Lebanon’s interests to interfere with his personal
ambitions. However, for a president who has claimed to be a champion of
Christians to be so explicitly criticised by a senior member of the Maronite
clergy only confirmed the extent to which Mr Aoun’s presidential mandate has
been perceived as a fiasco by all but the president’s most credulous supporters.
Christians are estimated at roughly 30 per cent of the Lebanese population,
though a census has not been held since 1932. Some figures go higher. However,
the reality is that the dysfunctional Lebanese system, dominated by a corrupt
sectarian political class and a militarised party, Hezbollah, which follows an
Iranian agenda, offers no appeal to many young Lebanese. When youths graduate,
their first impulse is to leave the country to find work elsewhere.
These dynamics have been particularly damaging to Christians, given their lower
demographics. The reason is that those who leave Lebanon usually do so
permanently, because there are few interesting job opportunities open to them at
home and the economy often fails to reward innovation and initiative. Moreover,
given the sectarian leaders’ predatory lock on the political system, it is
virtually impossible to break the prevailing status quo.
The Maronite church, though often seen as a bastion of rigid conservatism, has
been an instrument of profound change in Lebanon’s history. During the 18th and
19th centuries, the church’s educational institutions were responsible for
creating a class of educated people willing to challenge the prominent lordly
families, thereby injecting social dynamism into the community against a feudal
order.
The Maronites were not the only church to do so, but the reality is that the
clergy has not been systematically aligned with the political elite, or even
with the Maronite president. For instance, during the civil war of 1958, the
patriarch at the time, Paul Peter Meouchi, strongly opposed the president,
Camille Chamoun. In other words, the Maronite church has a legacy of opposition
to the political elite on which to build as it seeks to defend its community’s
presence in Lebanon.
In his remarks, Bishop Abdel-Sater was making a fundamental point, namely that
the Maronite community is not defined by the whims of its politicians. Yet all
the signs today are that it is threatened by the folly of its most dominant
leaders.
**Michael Young is editor of Diwan, the blog of the Carnegie Middle East
programme, in Beirut
U.S. DEPARTMENT OF THE TREASURY
PRESS RELEASES
USA Treasury Designates Martyrs Foundation Companies and Officials as Global
Terrorists
5182
February 26, 2020
Washington – The U.S. Department of the Treasury’s Office of Foreign Assets
Control (OFAC) today designated as Specially Designated Global Terrorists (SDGTs)
three Lebanon-based officials and 12 Lebanon-based entities linked to the
Martyrs Foundation, part of Hizballah’s support network. Specifically, OFAC
designated Atlas Holding for being owned or controlled by the Martyrs
Foundation, as well as senior Atlas official Kassem Mohamad Ali Bazzi, and ten
Atlas-affiliated companies. Jawad Nur-al-Din and Sheikh Yusuf Aasi were also
designated, pursuant to Executive Order (E.O.) 13224, as amended, for being
leaders or officials of the Lebanon-based Martyrs Foundation, which was
designated for supporting terrorism in July 2007. Mirath S.A.L., which is owned
or controlled by Jawad Nur-al-Din, was also designated today.
“Hizballah profits from the sale of goods vital to the Lebanese peoples’ health
and economy, such as pharmaceuticals and gasoline,” said Secretary Steven T.
Mnuchin. “The Trump Administration stands with the Lebanese people, and we are
committed to exposing and holding accountable Hizballah’s terror-funding
business schemes.”
Hizballah put the Lebanese banking sector at risk through its deep coordination
with Jammal Trust Bank, which was designated as an SDGT in August 2019. Atlas
Holding — a company controlled by the Martyrs Foundation and subordinate to
Hizballah’s Executive Council — along with several of its subsidiaries banked
freely at Jammal Trust Bank despite their open affiliation with previously
designated Hizballah entities. In fact, Jammal Trust Bank facilitated hundreds
of millions of dollars in transactions through the Lebanese financial system on
behalf of Atlas Holding and its subsidiaries, and aided Hizballah officials in
evading scrutiny on these accounts from Lebanese banking authorities.
Hizballah was designated by the Department of State as a Foreign Terrorist
Organization in October 1997 and as an SDGT pursuant to E.O. 13224 in October
2001. As noted in previous Treasury actions, the Lebanon office of the Martyrs
Foundation acts as an Iranian parastatal organization and is an integral element
of Hizballah’s global terror support network. It provides services such as
financial support to the families of killed or imprisoned Hizballah members, as
well as to families of suicide bombers from HAMAS and Palestinian Islamic Jihad.
ATLAS HOLDING
Atlas Holding is owned or controlled by the Martyrs Foundation.
Atlas Holding owns or controls at least ten companies in numerous sectors in
Lebanon, including fuel, pharmaceuticals, tourism, and clothing. According to
corporate registration information, the Martyrs Foundation and its senior
official Sheikh Yusuf Aasi are listed as founders of Atlas Holdings. As of late
2017, Atlas was among several entities identified as being subordinate to
Hizballah’s Executive Council, which takes advantage of its entities’ legitimate
and civilian appearance to conceal money transfers for Hizballah’s military use.
Although the funding from these Executive Council companies went into
Hizballah’s coffers and military activities, Hizballah hoped that the seemingly
legitimate business funds could protect Hizballah from sanctions.
KASSEM MOHAMAD ALI BAZZI
Kassem Mohamad Ali Bazzi is a leader or official of Atlas Holding.
Kassem Mohamad Ali Bazzi serves as the CEO and Chairman of the Board of Atlas
Holding as of 2019, and is the company’s largest shareholder. Additionally,
according to corporate registration information, he serves as an official for
several of Atlas Holdings’ subsidiaries, including Amana, Amana Plus, Medic,
Shahed Pharm, City Pharma, al Kawthar, and Global Touristic Services.
JAWAD NUR-AL-DIN
Jawad Nur-al-Din is a leader and official of the Martyrs Foundation.
Jawad Nur-al-Din serves as the Director General of the Lebanon-based Martyrs
Foundation. In this capacity, he oversees payments to the families of Hizballah
fighters who have been killed, and has coordinated these payments with senior
Hizballah officials such as SDGT Hashim Safi al-Din. As a senior official of the
Lebanon-based Martyrs Foundation, he works closely with senior Hizballah
officials and publicly represents the Martyrs Foundation alongside senior
Hizballah officials including Hizballah leader Hassan Nasrallah. Hashim Safi
al-Din was designated pursuant to E.O. 13224 in May 2017. Hassan Nasrallah was
designated pursuant to E.O. 12947 in January 1995, pursuant to E.O. 13582 in
September 2012, and pursuant to E.O. 13224 in 2018.
SHEIKH YUSUF AASI
Sheikh Yusuf Aasi is a leader or official of the Martyrs Foundation.
In his role with the Martyrs Foundation, Sheikh Yusuf Aasi has publicly
advocated for the foundation in light of U.S. sanctions against Hizballah and
the rising number of Hizballah operatives killed in Syria. Additionally, Sheikh
Yusuf Aasi is one of the founders of Atlas Holdings, which is being designated
today for being owned or controlled by the Martyrs Foundation.
MEDICAL EQUIPMENT & DRUGS INTERNATIONAL CORPORATION (MEDIC)
Medic is owned or controlled by Atlas Holding. According to corporate
registration information, founders of Medic include both Atlas and Bazzi. Atlas
is the majority shareholder for the company, and Bazzi, who holds fewer shares,
serves as the Director General, Chairman, and authorized signatory for the
company.
SHAHED PHARM
Shahed Pharm is owned or controlled by Atlas Holding. According to corporate
registration information, senior Martyrs Foundation official Jawad Nur-al-Din is
listed as one of its founders, along with Atlas Holdings, and Kassem Mohamad Ali
Bazzi is listed as a shareholder, director, and authorized signatory for the
company.
AMANA FUEL CO.
Amana Fuel Co. is owned or controlled by Atlas Holding. According to corporate
registration information, Atlas Holdings controls the majority of shares in the
company, and Kassem Mohamad Ali Bazzi is listed as a founder, director, and
authorized signatory for the company.
AMANA PLUS CO.
Amana Plus Co. is owned or controlled by Atlas Holding. According to corporate
registration information, Atlas Holdings is a founder of, and the largest
shareholder for, Amana Plus Co. Jawad Nur-al-Din and Kassem Mohamad Ali Bazzi
are also listed as company founders, with Bazzi also serving as the Director
General, Chairman, and authorized signatory of the company.
AL KAWTHAR
Al Kawthar is owned or controlled by Atlas Holding. Also of note, corporate
registration information lists Atlas Holding and Martyrs Foundation CEO Jawad
Nur-al-Din as founder of Al Kawthar, and Atlas is a majority shareholder in the
company.
AMANA SANITARY AND PAINTS COMPANY L.T.D.
Amana Sanitary and Paints Company L.T.D. is owned or controlled by Atlas
Holding. According to corporate registration information, Atlas and Jawad Nur-al-Din
are both founders of the company, with the majority of the company’s stock being
allocated to Atlas.
CITY PHARMA S.A.R.L.
City Pharma S.A.R.L. is owned or controlled by Atlas Holding. According to
corporate registration information, Atlas is a founder of the company along with
Jawad Nur-al-Din, and Kassem Mohamad Ali Bazzi was the authorized signatory for
the company.
GLOBAL TOURISTIC SERVICES S.A.L.
Global Touristic Services S.A.L. is owned or controlled by Atlas Holding.
According to corporate registration information, the company was founded by
Atlas, Kassem Mohamad Ali Bazzi, and Jawad Nur-al-Din. Additionally, Atlas is
the majority shareholder in the company, Kassem Mohamad Ali Bazzi is the
authorized signatory, and Jawad Nur-al-Din and Kassem Mohamad Ali Bazzi are
members of the board of directors.
MIRATH S.A.L.
Mirath is owned or controlled by Jawad Nur-al-Din. According to corporate
registration information, Jawad Nur-al-Din is the chairman of the board,
majority shareholder, as well as a founder of, and authorized signatory for,
Mirath S.A.L.
SANOVERA PHARM COMPANY SARL
Sanovera Pharm Company SARL is owned or controlled by Atlas Holding.
CAPITAL S.A.L.
Capital S.A.L. is owned or controlled by Atlas Holding.
SANCTIONS IMPLICATIONS
The Treasury Department continues to prioritize disrupting the full range of
Hizballah’s illicit financial activity, including its financial support network.
As a result of today’s action, all property and interests in property of these
targets that are in the United States or in the possession or control of U.S.
persons must be blocked and reported to OFAC. OFAC’s regulations generally
prohibit all dealings by U.S. persons or within the United States (including
transactions transiting the United States) that involve any property or
interests in property of blocked or designated persons. In addition, persons
that engage in certain transactions with the individuals and entities designated
today may themselves be exposed to sanctions or subject to an enforcement
action.
Furthermore, the individuals and entities designated today are subject to
secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this
authority, OFAC can prohibit or impose strict conditions on the opening or
maintaining in the United States of a correspondent account or a payable-through
account by a foreign financial institution.
The Latest English LCCC Miscellaneous Reports And News
published on February 27-28/2020
Israeli Sources: Netanyahu Did Not Heed Oman's Proposal to Meet Abbas in Muscat
Tel Aviv - Asharq Al-Awsat/Thursday, 27 February, 2020
An Israeli diplomat revealed that Oman's late Sultan Qaboos bin Said suggested
on Israeli Prime Minister Benjamin Netanyahu to host a secret summit with
Palestinian Authority President Mahmoud Abbas. This came during Netanyahu's
visit to Muscat in October 2018, however, the latter did not approve the
proposal. The source told Channel 13 that Netanyahu was aware that his
invitation to Oman was to discuss Sultan Qaboos's initiative but he had no plans
to approve it. He took advantage of the invitation to take pictures with Qaboos
and also took his wife Sara with him, breaking Muscat's protocol on foreign
leaders' visits. According to Israeli officials, Netanyahu listened to Qaboos's
plan but did not give a firm commitment to it–yet, Abbas had agreed to the
proposal a few days earlier during his trip to Muscat. In Feb. 2019, Netanyahu
met Omani Foreign Minister Yusuf bin Alawi, on the sidelines of the conference
organized by the US in Warsaw to mobilize global opinion against Iran. During
the event, Bin Alawi presented clarifications on the proposed plan, however,
Netanyahu showed no positive response.
Days before Poll, Israel Approves Nearly 1,800 New Settler
Homes
Agence France Presse/Naharnet/February 27/2020
Israel approved nearly 1,800 new homes in settlements in the occupied West Bank
Thursday, the country’s right-wing Defense Minister announced, four days ahead
of a general election.The ministry said a planning committee "approved the
construction of 1,800 housing units, according to the proposal of the Minister
of Defense Naftali Bennett", in a statement that quoted figures adding up to
slightly below this amount.
Russia Accuses Turkey of Violating Syria Deal, Supporting
Rebels with Artillery
Agence France Presse/Naharnet/February 27/2020
The Russian defense ministry on Thursday accused Turkey of violating a peace
deal for Syria's Idlib by supporting rebels with artillery fire and drones. "In
violation of the Sochi agreements in the Idlib de-escalation zone the Turkish
side is continuing to support illegal armed groups with artillery fire and the
use" of drones to target the Syrian troops, the ministry said, quoting the head
of the Russian Reconciliation Center for Syria, Oleg Zhuravlev.
Iraq Parliament Postpones Confidence Vote over Quorum
Agence France Presse/Naharnet/February 27/2020
Iraq's divided parliament Thursday postponed a confidence vote for the
government of prime minister-designate Mohammad Allawi over lack of quorum,
plunging the country deeper into political uncertainty. The vote has been a key
demand of Allawi as well as well populist cleric Moqtada Sadr who had threatened
to organize mass protests outside parliament unless lawmakers backed the
government in a vote this week. After multiple meetings between parliamentary
groups and key officials, including Allawi, parliament speaker Mohammed Halbusi
postponed the session until Saturday. The political wrangling coincides with
unprecedented protests since October 1 in the capital and Iraq's south,
demanding a complete government overhaul. Prompting objections from protesters,
political parties nominated Allawi as a consensus candidate this month, after
President Barham Saleh threatened to unilaterally choose a premier if they
failed to agree. But two months after outgoing premier Adel Abdel Mahdi's
government resigned under pressure from the street, lawmakers remain divided
over the distribution of cabinet posts. Another bone of contention is the fate
of the 5,200 U.S. troops stationed in Iraq, which Shiite lawmakers have voted to
expel, over objection from their Sunni and Kurdish counterparts.
Turkish army firing on Russian planes in Syria’s Idlib,
says Russian state TV
Reuters, Moscow/Thursday, 27 February 2020
Russian state television said on Thursday Turkish military specialists in
Syria’s Idlib region were using shoulder-fired missiles to try to shoot down
Russian and Syrian military aircraft. The assertion, aired during a report from
Idlib on the Rossiya 24 channel, came as Turkish and rebel officials said Syrian
rebels, backed by the Turkish military, had seized the town of Nairab in
Idlib.“Their own and Russian planes are saving the lives of Syrian troops in a
literal sense,” said the Rossiya 24 report. “Syrian and Russian planes are
stopping the rebels again and again. But the sky above Idlib is also dangerous.
The rebels and Turkish specialists are actively using portable air defense
systems.”It said Russian and Syrian planes were therefore being forced to take
counter-measures after carrying out bombing runs on rebel positions.
Three more Turkish soldiers killed in Syria’s Idlib:
Erdogan
Reuters/Thursday, 27 February 2020
President Recep Tayyip Erdogan said on Thursday three more Turkish soldiers had
been killed in Syria’s Idlib region, where Turkey’s military is backing Syrian
opposition fighters against government forces, but that developments there were
turning in Ankara’s favor.
“We have three martyrs, let them rest in peace. But on the other hand, the
regime’s losses are very big,” Erdogan said in a speech. Including the latest
three deaths, 21 members of the Turkish forces have been killed in Idlib this
month.
Qaeda, ISIS Affiliates Team Up in West Africa
Asharq Al-Awsat/Thursday, 27 February, 2020
The only place in the world where militants linked to al-Qaeda and ISIS are
cooperating is in West Africa's sprawling Sahel region, giving the extremists
greater depth as they push into new areas, according to the commander of the US
military's special forces in Africa. "I believe that if it‘s left unchecked it
could very easily develop into a great threat to the West and the United
States,” US Air Force Brig. Gen. Dagvin Anderson told The Associated Press in an
interview this week. The leader of US Special Operations Command Africa
described the threat even as the Pentagon considers reducing the US military
presence in Africa. Experts have long worried about collaboration between
al-Qaeda and ISIS. While the cooperation in the Sahel is not currently a direct
threat to the US or the West, “it’s very destabilizing to the region,” Anderson
said.
He spoke on the sidelines of the US military's annual counterterrorism exercise
in West Africa, currently the most active region for extremists on the
continent. The alarming new collaboration in the Sahel between affiliates of al-Qaea
and ISIS is a result of ethnic ties in the region that includes Mali, Niger and
Burkina Faso. "Whereas in other parts of the world they have different
objectives and a different point of view that tends to bring ISIS and al-Qaeda
into conflict, here they’re able to overcome that and work for a common
purpose,” Anderson said, emphasizing that it's a local phenomenon.
The cooperation allows the extremist groups to appeal to a wider audience in a
largely rural region where government presence is sparse and frustration with
unemployment is high. The past year has seen a surge in deadly violence in the
Sahel, with more than 2,600 people killed and more than half a million displaced
in Burkina Faso alone. Al-Qaeda is the deeper threat both in the region and
globally, Anderson said. The French lead the military effort in the Sahel with
more than 5,000 forces and they hope to bring in more European partners. But the
French have urged the US to reconsider any cuts to its already small military
footprint of about 1,400 personnel in West Africa. The US has about 6,000
personnel on the continent. Anderson countered that the US is already doing a
lot in the Sahel through the State Department, a large USAID presence and
investment. “Instead of looking at the size of the presence, I think we should
look at what is the appropriate engagement across the government, from all
levels,” he said. With very small engagement, the US can still help countries
develop the capabilities to build coalitions and share intelligence, Anderson
said. “It’s going to take all these nations working together, but also it’s
going to have to be African solutions to an African problem,” he said.
German President Heads to Khartoum Amid Investment Promises
Khartoum - Ahmed Younis/Asharq Al-Awsat/Thursday, 27 February,
2020
German President Frank-Walter Steinmeier will arrive in Sudan's capital Khartoum
on Thursday in a visit for which the Sudanese transitional government has
prepared a rich agenda. This will mark the first visit of a high-level European
official in decades. Steinmeier will arrive at the head of a delegation of
businessmen, investors and German Development Minister Gerd Muller who visited
Sudan earlier this month. Germany sees that ‘time should not be wasted’ and
investments in Sudan must kick off the soonest, especially with the German
parliament (Bundestag) laying grounds for these plans through annulling a law
that prohibited German investments after the coup that brought Omar Bashir to
the presidency. The German delegation will seek investment opportunities without
wasting time, stressed Muller before his visit. Earlier, Germany announced
allocating EUR80 million to assist the transitional government in Sudan. The aid
will be invested in energy, fuels, infrastructure, training, agriculture, water
and fields that empower women and youths. Sudan pins high hopes on German
investments and sees them as a key to more western and European investments.
They may even pave the way to removing sanctions hindering economic development.
Information Minister Faisal Saleh told Asharq Al-Awsat newspaper that the
government is interested in the president’s visit because it is the first for a
high-level European official in years. Saleh described Germany as a significant
state and its importance is reinforced with its presence in the EU. He
highlighted the historic ties between Germany and Sudan in diverse fields. He
added that when Sudanese Prime Minister Abdalla Hamdok visited Germany, the two
discussed electrical energy and renewable energy in Sudan. Hamdok also expressed
the will to revive vocational training centers in Germany. In this context, Head
of Delegation of the European Union to Sudan Robert van den Dool announced that
EU High Representative Josep Borrell will arrive in Sudan next Saturday on an
official two-day visit. Borrell will attend a ministerial meeting of the
Intergovernmental Authority on Development (IGAD) in Khartoum. Sudan is chairing
the IGAD, the head of the delegation revealed in a press released that Asharq
Al-Awsat received a copy of. He will also hold meetings with Sudanese leaders
including President of the Sudanese Sovereign Council Abdel Fattah al-Burhan,
and Hamdok. He will also visit Al Fashir, where he will meet international
organizations, UN agencies, internally displaced people, women and young leaders
in Sudan. He will also deliver a speech at the University of Khartoum on the
anticipated EU role in the country and meet with Sudanese young men and women
who led the Sudanese peaceful revolution.
US blacklists Iraqi Shiite paramilitary chief after base
attacks
AFP/February 27/ 2020
Washington (AFP) - The United States on Wednesday declared a powerful Iraqi
Shiite paramilitary leader to be a terrorist after a series of rocket attacks,
vowing to step up pressure on his ally Iran.
The State Department listed Ahmad al-Hamidawi, secretary general of armed
faction Kataib Hezbollah, as a "specially designated global terrorist," freezing
any US assets he may hold and making US transactions with him a crime.
The group as a whole, which has a close relationship with Iran, has been
designated as a terrorist group by the United States since 2009.
"Today we are intensifying our pressure on this terrorist group," Nathan Sales,
the State Department counterterrorism chief, told a news conference. He charged
that the group's goal is to "advance the Iranian regime goal of turning Iraq
into a vassal state."
The State Department pointed to Kataib Hezbollah's series of rocket attacks
including fire on December 27 against an Iraqi base that houses US troops which
killed a US citizen contractor.
The incident sent tensions soaring, with the United States bombing paramilitary
targets and eventually killing Iran's most powerful general, Qassem Soleimani,
in a drone attack at the Baghdad airport.
The State Department also pointed to indications that the group was behind
deadly sniper attacks against demonstrators in October in Baghdad.
Nationwide protests, triggered by economic concerns, brought down a government
that had close ties with Iran.
Secretary of State Mike Pompeo on Sunday spoke by telephone with Iraq's
designated next prime minister, Mohammad Allawi, and urged the government to
protect US forces.
The Soleimani killing led the caretaker government to seek the departure of the
US military, a request rejected by President Donald Trump who threatened
sanctions if troops are forced out.
New Leader Takes Helm of Iranian Proxy Forces in Iraq
Behnam Ben Taleblu/FDD/February 27/2020
Iraq’s Popular Mobilization Units (PMUs) – the paramilitary organization that
encompasses the country’s pro-Iran and Shiite militias – named Abdulaziz al-Mohammadawi,
also known as Abu Fadak, as its new leader last week. Like his late predecessor,
Abu Fadak is loyal to the interests of Iran’s Islamic Revolutionary Guard Corps
Quds Force (IRGC-QF).
Abu Fadak replaces Jamal Jafar al-Ibrahimi, known by his popular nom de guerre,
Abu Mahdi al-Muhandis, who was killed in January by a U.S. drone strike, along
with IRGC-QF commander Qassem Soleimani. Muhandis’ career personified Iran’s
goal of exporting its Islamic Revolution abroad. He fought with Iran against
Ba’athist Iraq during the 1980–1988 Iran-Iraq War; participated in Iran-backed
terror operations in Kuwait in the 1980s; targeted U.S. and coalition forces in
Iraq after 2003; and provided material support to designated terrorist groups,
such as the IRGC-QF, Lebanese Hezbollah, and Palestinian Islamic Jihad.
Prior to becoming a PMU commander, Muhandis founded one of the most lethal
pro-Iran militias in Iraq, Kata’ib Hezbollah (KH), which carried out the
December 2019 round of military provocations that culminated in the U.S. killing
of Soleimani. Muhandis was a close associate of Soleimani, having fought in
numerous conflicts with the Quds Force leader. Similarly, photos can be found on
social media showing Abu Fadak leading Soleimani in prayer as well as being held
and kissed by him.
Like many Shiite Islamists, Abu Fadak was an opponent of the Saddam Hussein
regime, and as early as 1983, reportedly began to work in an intelligence
capacity in Iraq for the Badr Corps, Iran’s oldest proxy. During the 2003–2011
U.S. war in Iraq, Abu Fadak joined Iran’s effort to bleed American and coalition
forces. The limited open-source material available claims Abu Fadak was part of
KH during this time and later followed in Muhandis’ footsteps to become leader
of the organization.
Abu Fadak and the PMU are also reported to have played a role in IRGC-directed
military campaigns to save the Assad regime during Syria’s civil war. He also
reportedly oversaw the domestic production of rockets and missiles in Iraq,
likely by copying Iran-provided systems.
In 2009, KH became the first pro-Iran Shiite militia in Iraq to be placed on the
State Department’s Foreign Terrorist Organization (FTO) list. Given his
leadership position in this FTO, in addition to his links with Muhandis and
Soleimani, Abu Fadak should be sanctioned.
The administration could impose sanctions on Abu Fadak under two different
executive orders: Executive Order 13438, which punishes those who threaten peace
and stability in Iraq, and Executive Order 13224, which sanctions terrorists and
their financial backers. Last year, President Trump expanded Executive Order
13224 to authorize secondary sanctions against targets as well.
Hopefully, designating Abu Fadak can help Washington regionalize its maximum
pressure policy toward Iran. Imposing sanctions on Abu Fadak can signal to the
Iraqi people, who are increasingly dissatisfied with the Iraqi political class
and increased Iranian meddling, that Washington will not sit by as Iran seeks to
reconstitute and grow its networks abroad at the expense of Iraqi and American
interests.
*Behnam Ben Taleblu is a senior fellow at the Foundation for Defense of
Democracies (FDD), where he also contributes to FDD’s Center on Economic and
Financial Power (CEFP) and Center on Military and Political Power (CMPP). For
more analysis from Behnam, CEFP, and CMPP, please subscribe
Rocket Fire Hits Libyan Capital's Airport
Agence France Presse/Naharnet/February 27/2020
The Libyan capital's only working airport was hit by rocket fire Thursday,
aviation officials said, in the latest violation of a ceasefire between warring
sides vying for control of Tripoli. Flights to and from Mitiga International
Airport were suspended for more than four hours after what authorities said in a
Facebook post was "continuous bombing" of the facility's perimeter. The U.N.
mission in Libya (UNSMIL) reported "repeated bombings over the past two days"
targeting Mitiga, in a Twitter post. The U.N.-recognized Government of National
Accord (GNA), based in the capital, blames such strikes on forces of its rival
Khalifa Haftar, an eastern strongman who launched an offensive to take the
capital last April. Pro-Haftar forces say the GNA has been using the
airport for military purposes. The two sides agreed to a ceasefire brokered by
Turkey and Russia -- the former backing the GNA and the latter pro-Haftar --
that went into effect on January 12, but there have been repeated violations.
The strikes on Mitiga come a day after political talks were due to have started
in Geneva, but the rival parties said they were staying away. The talks are to
run in tandem with military and economic negotiations as part of a
U.N.-sponsored dialogue aimed at resolving the conflict. A joint military
commission wound up talks in Geneva last Sunday with a "draft ceasefire
agreement" to be finalized in March, according to UNSMIL. The U.N. mission
"strongly condemned" Thursday's rocket attacks. "These violations are taking
place at the moment when Libyans are working with the U.N... to put an end to
the conflict and the suffering of the Libyan people, which worsens by the day,"
it tweeted. The fighting since April has left more than 1,000 people dead,
according to the UN. Libya has been rocked by violence since a NATO-backed
uprising in 2011 overthrew and killed the country's veteran leader Colonel
Moammar Gadhafi.
Saudi Arabia halts entry for Umrah in Mecca, tourism from
coronavirus-hit states
Tuqa Khalid, Al Arabiya English/Thursday, 27 February 2020
Saudi Arabia temporarily suspended entry for individuals seeking to perform
Umrah pilgrimage in Mecca or visiting the Prophet's Mosque in Madina, as well as
tourists traveling from countries where the coronavirus poses a risk as
determined by the Kingdom’s health authorities. The new precautions are “based
on the recommendations of the competent health authorities to apply the highest
precautionary standards and take proactive preventive measures to prevent the
emergence of the coronavirus in the Kingdom and its spread,” the Ministry of
Foreign Affairs said in a statement on Twitter. These measures come at a time
when has been a sharp increase in the number of cases reported in the Middle
East, where most of the individuals infected had traveled from Iran which has a
reported death toll standing at 19, the highest outside China. This pushed
several countries to suspend flights and most of its neighbors to close their
borders. Kuwait, Bahrain, Oman, Lebanon, Iraq, and the UAE have all reported
coronavirus cases who had traveled to Iran recently.
Exceptions to the ban
The Minister of Health Tawfiq al-Rabiah confirmed on Wednesday that there were
no coronavirus cases detected in the Kingdom so far. Saudi Arabia is also
suspending the use of the national identity card by Saudi national and citizens
of the Gulf Cooperation Council (GCC) states to travel to and from the Kingdom.
However, there are exceptions: Saudis who are abroad and wish to return home if
their exit from the Kingdom was with the national identity card, and citizens of
the GCC countries currently inside the Kingdom who wish to return to their
countries if their entry was with the national identity card. This allows the
authorities at entry points to “verify from which countries visitors came before
their arrival to the Kingdom and apply health precautions to deal with those
coming from those countries.”“The Kingdom affirms that these procedures are
temporary, and are subject to continuous evaluation by the authorities,” the
ministry said.
Iranian Vice President Masoumeh Ebtekar tests positive for
coronavirus: Report
Yaghoub Fazeli, Al Arabiya English/Thursday, 27 February 2020
Iranian Vice President for Women and Family Affairs Masoumeh Ebtekar has tested
positive for coronavirus, the state-run daily IRAN reported. Ebtekar is the
first member of President Hassan Rouahni’s cabinet to be infected with the novel
coronavirus. Earlier today, the chairman of the Iranian parliament’s national
security and foreign affairs committee Mojtaba Zolnour announced in a video that
he had also been infected with the disease. Two other Iranian officials – Member
of Parliament Mahmoud Sadeghi and Deputy Health Minister Iraj Harirchi – have
also previously confirmed that they have been infected with the disease. State
media also reported on Thursday that Iranian cleric Hadi Khosroshahi died from
coronavirus in Qom. Khosroshahi served as Iran’s ambassador to the Vatican
following the 1979 revolution.
1,296 Coronavirus Cases Recorded Globally in 24 Hours
Agence France Presse/Naharnet/February 27/2020
The number of new coronavirus cases in the world rose to 82,560, including 2,813
deaths, across 50 countries and territories by 1700 GMT on Thursday, according
to a report gathered by AFP from official sources.
In the 24 hours since the previous count at 1700GMT on Wednesday, 1,296 new
contaminations were identified. China -- excluding the territories of Hong Kong
and Macau -- where the epidemic emerged at the end of December, had 78,497
cases, of which 2,747 were fatal. There were 433 new infections between 1700GMT
Wednesday and 1700GMT Thursday. A further 4,063 cases had been recorded around
the world, including 66 deaths and 863 new cases. The most affected countries
after China are: South Korea (1,766 cases, 13 deaths, 505 new cases), Italy (528
cases, 14 deaths, 128 new cases), Iran (245 cases, 26 deaths, 106 new cases) and
Japan (187 cases, 8 deaths, 17 new cases). Japan has also recorded more than 700
cases on the cruise ship Diamond Princess moored off Yokohama. This assessment
was carried out using data collected by AFP offices from the competent national
authorities and information from the World Health Organization (WHO).
WHO Says Virus at 'Decisive Point' as World Battles Spread
Agence France Presse/Naharnet/February 27/2020
The World Health Organization declared Thursday that the new coronavirus
epidemic was at a "decisive point" as countries across the globe battled to
contain the deadly outbreak. Saudi Arabia banned pilgrims from visiting Islam's
holiest sites as the number of deaths jumped in neighboring Iran, while Japan
and Iraq ordered the closure of schools. Alarm is growing as China is no longer
the only breeding ground for COVID-19, with other countries including South
Korea and Italy becoming hotbeds of infection, raising fears of a pandemic.
"We're at a decisive point," WHO chief Tedros Adhanom Ghebreyesus told a press
conference in Geneva. "If you act aggressively now, you can contain this virus,
you can prevent people getting sick, you can save lives." The virus has already
killed more than 2,760 people, mostly in China -- where it first emerged in
December -- and infected more than 81,000 in over 45 countries. But there are
now more daily cases being recorded outside China, raising fears that poor
countries with weak health infrastructures would not be able to cope. "It's
what's happening in the rest of the world that's now our greatest concern,"
Tedros said.
Bracing for economic hit
World financial markets have plunged on fears that widespread lockdowns could
hamper business activity and dent global growth, while sports matches and
festivals have been cancelled to try to stem infections. The EU said it was
bracing for an economic hit, with tourism already feeling the pinch and supply
chains reliant on China also being affected. And President Emmanuel Macron said
France, the world's most visited country which has recorded two deaths, was
preparing for a jump in cases. "We are facing a crisis, an epidemic that is
coming," he said. With COVID-19 spreading in the Middle East, Saudi Arabia
suspended visas for visits to Islam's holiest sites for the "umrah" pilgrimage,
an unprecedented move, raising questions over the hajj which starts in July. The
kingdom -- which hosts millions of pilgrims every year -- said it was also
suspending visas for tourists visiting from countries where the virus is a
"danger". Neighboring Iran reported seven new deaths over 24 hours, taking the
overall toll to 26, the highest outside China. Tehran also imposed domestic
travel restrictions for confirmed or suspected cases and slapped curbs on visits
to major Muslim pilgrimage sites, while Iran's neighbors have shut their
borders. The first cases in Afghanistan, Pakistan and Estonia involved people
who had been in Iran. In Japan, schools were ordered to close for several weeks,
after the government struggled to deal with the fallout of infections from a
cruise ship it quarantined off the coast. Japan has seen at least 186 cases of
infection among the general population, with four deaths. Worryingly, one woman
was found to be positive again after initially contracting the virus, then being
released from hospital after treatment and a negative test.
'Nothing's inevitable'
Several governments have also advised against travel to Italy -- Europe's
epicenter with 528 cases and 14 deaths. In Latin America's first case, a
61-year-old patient in Brazil had traveled to Italy. Other countries including
Algeria, Denmark, Romania and Spain have also reported infections linked to
Italy. But Rome hit back, with Foreign Minister Luigi Di Maio slamming "false
reports" abroad about panic, cities in lockdown and runs on supermarkets, saying
they were "doing more damage than the risk of an epidemic". The U.S. and South
Korean militaries announced the postponement of joint exercises planned for this
spring after Seoul declared its highest "severe" alert level over the virus
which has claimed 12 lives out of almost 1,600 cases, the highest number outside
China. Even China itself -- which sealed off an entire province and shut down
cities across the country -- is now worried about importing cases and ordered
people arriving in Beijing from affected countries to go into 14-day
self-quarantine. China reported 29 more deaths Thursday -- its lowest daily
tally since January -- and 433 new cases. But President Donald Trump has played
down fears of a major outbreak in the United States, the world's largest
economy. "I think that there's a chance that it could get worse, a chance it
could get fairly substantially worse, but nothing's inevitable," Trump told
reporters Wednesday. U.S. public health officials confirmed a coronavirus case
in California, the first of unknown origin out of about 60 cases, and have told
Americans to be ready to cancel mass gatherings and work from home. The virus is
believed to have originated in a market in the central Chinese city of Wuhan,
where it is suspected of having hopped from animal to human. Zhong Nanshan, a
respected scientist who advises the government, said China would have had far
fewer cases if action had been taken as early as December -- a rare critique
from a prominent insider. Hubei officials have been accused of initially
covering up the outbreak and silencing a whistleblowing doctor who later died
from the disease.
WHO's Tedros said all countries should ensure their health systems were
prepared. "We are actually in a very delicate situation in which the outbreak
can go in any direction based on how we handle it."
The Latest LCCC English analysis & editorials from miscellaneous
sources published on February 27-28/2020
The Iran nuclear front: From
deterioration to deadlock - analysis
Jerusalem Post/February 27/2020
Why did nothing come out of the European Union's meeting on Wednesday with Iran?
The parties to the Iran nuclear deal met late Wednesday for the first time since
several crucial changes took place, with the surprising signal being that the
trajectory of the US-Iran standoff has cooled off a bit from deterioration to
deadlock.
This is surprising because it would seem to be the opposite of the worsening
deterioration that has taken place over the last two months.
First, the US killed Islamic Revolutionary Guard Corps Quds Force chief Qasem
Soleimani on January 3.
In response to that and to US sanctions, Iran shortly afterward announced it
would no longer abide by any of the nuclear deal’s limitations.
There are debates about the exact numbers, but Iran likely has gone from less
than 300 kilograms of low-enriched uranium to about the 1,000 kg. needed to make
a nuclear bomb.
The EU-3 (France, Germany and Italy) responded with its first sign of life to
exercise its enforcement ability by formally declaring that Iran may be in
fundamental violation of the deal. It invoked a clock that could tick down to
UN-enforced global sanctions more serious than the American ones.
Last Friday, the Financial Action Task Force (FATF), a powerful international
banking organization, blacklisted Iran for the first time since the nuclear deal
was signed, because it had failed to pass anti-terrorism financing and
anti-money-laundering legislation despite years of warnings to do so.
Importantly, the FATF is viewed as heavily influenced by Europe, and no one
thinks the blacklist decision could have happened without European support.
Also on Friday, Iran’s hard-liners swept reformists out of parliament in an
election, seizing virtually all levers of power in the Islamic Republic other
than the presidency, held by now-isolated Hassan Rouhani.
In addition, the International Atomic Energy Agency (IAEA) recently has made
repeated statements that Iran violated the nuclear deal by concealing nuclear
material from inspectors at the Turquzabad nuclear site discovered by the Mossad.
An explosion could have been expected at Wednesday’s meeting. But it did not
happen. In fact, it seems all the sides have taken their “pound of flesh” and
now want to calm down, slow down and see what happens in the November US
elections.
SINCE MAY 2019 when the US ended waivers from its Iran sanctions, Tehran had
grown more violent against the US and its allies and had violated the nuclear
deal more and more.
But after announcing in January it was no longer bound by the nuclear deal and
deeply violating the low-enriched uranium threshold of around 5%, something
surprising happened. Iran ceased additional violations.
Alternately, it had threatened to begin enriching uranium to the much more
threatening midpoint of 20%, throw IAEA inspectors out of the country or leave
the Treaty on the Non-Proliferation of Nuclear Weapons. It has done none of the
above.
The bottom line is that Iran moved months closer to being able to manufacture a
nuclear weapon. But by stopping where it is, it has still kept itself at least
several months or more away from one.
So maybe Iran had acted up enough and is now ready to wait on US elections.
The EU-3 has always been desperate to keep Iran within the limits of the nuclear
deal and has been ready to twist and turn in Iran’s favor to maintain that.
So while some might have though that Wednesday’s meeting would lead to the EU-3
leaving the deal, moving to snap back UN global sanctions or at least issuing a
new ultimatum deadline, such consequences reportedly were not even discussed.
On the one hand, this completely erodes the EU-3’s credibility, if it had any,
about confronting Iran.
On the other hand, maybe the triumvirate succeeded if its purpose in threatening
Iran was to get it to halt its violations where they stood when the Eu-3 issued
the snap-back sanctions threat. Also, it did give Iran a bloody nose with the
FATF blacklist decision.
So it is clear that the EU-3 is ready to wait indefinitely on pressuring Iran
with such sanctions – as long as Tehran does not move closer to a nuclear bomb
than it already has.
And US President Donald Trump’s plan, despite killing Soleimani, is very clearly
an economic sanctions marathon against Iran.
There is no other plan. If it works and Iran changes its behavior, great. If
not, then at least as long as Tehran does not move to get a nuclear weapon, the
US is not going to up the stakes with a use of military force as things stand.
This does not mean everything will be smooth sailing from now until November.
But if May 2019 until February 2020 was a time of extreme instability in the
nuclear standoff, we may now have entered a “time-out” and wait-and-see period
of sorts – pending the big contest in November.
Israel's Election: What Do the Iranians and Palestinians
Want?
Bassam Tawil/Gatestone Institute/February 27/2020
Hebrew
The Palestinian Authority (PA) in the West Bank and Hamas in the Gaza Strip seem
to have endorsed the banner of Netanyahu's political rivals in Israel: "Anyone
but Bibi (Netanyahu's nickname)." The two Palestinian groups ' perceive
Netanyahu as a major threat to their dream of destroying Israel and as someone
who has further strengthened Israel's standing in the international arena.
The Palestinians are apparently convinced that it would be easier to extort
concessions from inexperienced politicians such as Benny Gantz, Moshe Ya'alon
and Gabi Ashkenazi. For the Palestinians, Netanyahu is a hard nut to crack. His
strong stance against their tactics of intimidation have been, for them, a
source of concern.
Abbas and his officials, in short, are telling the Israelis: "Look, we have a
problem here. This man, Netanyahu, will not surrender to us -- and that is why
you need to elect a new leader."
Abbas, not surprisingly, would doubtless prefer Israelis to replace Netanyahu
with a weak leader who would comply with all his demands and take Israel back to
the indefensible pre-1967 armistice lines -- a move that would most likely
result in the militias of Hamas, Islamic Jihad and Iran sitting on the West Bank
hilltops overlooking Israel's Ben Gurion International Airport.
The Palestinians are doing their absolute utmost to ensure that Israeli Prime
Minister Benjamin Netanyahu and his Likud Party do not win in Israel's general
election on Monday, March 2.
The Palestinian Authority (PA) in the West Bank, and Hamas in the Gaza Strip,
seem to have endorsed the banner of Netanyahu's political rivals in Israel:
"Anyone but Bibi (Netanyahu's nickname)." The two Palestinian groups perceive
Netanyahu as a major threat to their dream of destroying Israel and as someone
who has further strengthened Israel's standing in the international arena.
In a last-minute, apparently desperate attempt to undermine the current Israeli
prime minister's chances of winning another election, the PA has launched a
public relations campaign to explain to the Israeli public why they should not
vote for Netanyahu.
The campaign, orchestrated personally by PA President Mahmoud Abbas, aims to
scare Israeli voters by warning them that casting their ballots for Netanyahu
would mean the end of the Middle East "peace process" -- a euphemism for
Palestinians retaking territory "from the [Jordan] River to the [Mediterranean]
Sea " -- or, in other words, all of Israel, as set forth in the 1974 Palestine
Liberation Organization (PLO) Phased Plan, which advocates accepting any land
one can and then using that as a base from which to acquire the rest.
Abbas's latest attempt to scare the Israeli public began earlier this month,
when he dispatched 20 Palestinian officials to a meeting with Israeli "peace
activists" in Tel Aviv. Organized by a left-wing anti-Netanyahu group called the
Israeli Peace Parliament, the meeting was held under the banner: "Two States for
Two People" and "No to Annexation." (The "annexation" refers to Netanyahu's plan
to apply Israeli law to some parts of the West Bank, particularly the Jordan
Valley and several Jewish communities).
Abbas sent his officials to Tel Aviv for the meeting not to promote peace with
Israel, but evidently to convince Israelis not to vote for Netanyahu. That is
what one concludes by listening to the statements of the Palestinians who
attended the "peace" gathering. These officials included former Palestinian
cabinet ministers and parliament members, as well as senior officials of Abbas's
ruling Fatah faction.
Although the meeting in Tel Aviv was also held under the banner, "Yes to Peace,"
the Palestinian (and Israeli) speakers devoted most of their speeches to
condemning US President Donald Trump's recently unveiled plan for Middle East
peace.
The speakers also spent much of their time bad-mouthing Netanyahu and depicting
him as a "threat" to peace and stability in the region. The Palestinians who
attended the meeting did not offer an alternative to the peace plan. The only
"plan" they came with to Tel Aviv is one that sees Israel submit unconditionally
to all of Abbas's demands: for the present, a full Israeli withdrawal to the
armistice lines of 1949, the establishment of an independent Palestinian state
with east Jerusalem as its capital.
The message the Palestinians were hoping to send to Israeli voters through the
meeting seemed to be: "Vote for a candidate who will accept all of our demands
and dictates, or else we, the Palestinians, will make you sorry that you
didn't."
In yet another attempt to influence the upcoming Israeli election, Abbas ordered
his so-called Palestinian Committee for Interaction with Israeli Society, a
group consisting of several PLO and Fatah officials and pundits, to invite
prominent Israeli (Jewish) journalists to Ramallah, the present de facto
Palestinian capital in the West Bank, for a tour of the city and meetings with
senior Palestinian officials.
Abbas and his associates went out of their way to pamper the journalists and
make sure they felt happy and comfortable in Ramallah, to a point where
religiously observant journalists were even offered kosher food ordered from a
nearby Jewish village.
Why did Abbas invite the journalists to Ramallah? To inform them that
Palestinians want peace -- and are even ready to sign a peace agreement with
Israel within the next two weeks! Ready, that is, if -- and only if -- the
Israeli government agrees to Abbas's demands and retreats to the pre-1967 lines,
where in 1949, fighting had stopped. Abbas and his officials, in short, are
telling the Israelis: "Look, we have a problem here. This man, Netanyahu, will
not surrender to us -- and that is why you need to elect a new leader."
Although Palestinian officials have not said so openly, they have made it clear
that they would prefer to see Netanyahu's rivals in the Blue and White Party in
power.
The Palestinians are apparently convinced that it would be easier to extort
concessions from inexperienced politicians such as Benny Gantz, Moshe Ya'alon
and Gabi Ashkenazi.
For the Palestinians, Netanyahu is a hard nut to crack. His strong stance
against their tactics of intimidation have been a source of concern.
Abbas and his officials have made it clear that they want nothing to do with any
Israeli leader who calls them out for their lies and double-talk.
Abbas, not surprisingly, would doubtless prefer Israelis to replace Netanyahu
with a weak leader who would comply with all his demands and take Israel back to
the indefensible pre-1967 armistice lines -- a move that would most likely
result in Hamas, Islamic Jihad and Iran sitting on the West Bank hilltops
overlooking Israel's Ben Gurion International Airport.
The Palestinians appear to want an Israeli leader who will also not call them
out for paying salaries and stipends to Palestinian terrorists and their
families for murdering Jews, and who will not call them out for their continued
hostile incitement against Israel. They also appear to want an Israeli leader
who will not have such strong and close relations with the US.
The Palestinians, in addition, seem to be hoping for an Israeli leader who will
not be able to promote normalization between Israel and diverse Arab states --
as Netanyahu has successfully managed to do in the past few years, and who will
not boost Israel's standing in the international community or hold close ties
with world leaders such as Russian President Vladimir Putin and US President
Donald Trump, as Israel's current prime minister does.
Similarly, Iran and its Palestinian proxies, Hamas and Palestinian Islamic
Jihad, appear desperate to see Netanyahu voted out of office. For them,
Netanyahu is a nightmare: he actively and effectively blocks their ongoing
attempts to extend their control over the region, in Syria, Yemen, Lebanon and
Iraq. The Iranians are angry about Israeli airstrikes on their bases and those
of their Hezbollah and Palestinian Islamic Jihad allies in Syria. Netanyahu has
been doing his utmost to prevent Iran from taking over Syria and bringing its
threat against Israel closer to Israel's border.
Iran, it seems, has ordered Hamas and Palestinian Islamic Jihad to resume their
terror attacks against Israel from the Gaza Strip one week before the election.
The terrorist groups in the Gaza Strip and their masters in Tehran seem
persuaded that upgrading their attacks against Israel will terrorize Israelis
into voting Netanyahu out of office.
By firing dozens of rockets at Israel this week, the Palestinian terrorists
apparently sought to send a message to Israeli voters that they need to elect a
new leader because Netanyahu cannot provide them with security and calm.
Iran and its Palestinian and Lebanese allies in the Middle East appear to think
that if a weak leader replaces Netanyahu, they can continue to amass weapons and
complete their scheme of expanding their control over Syria, Lebanon and the
Gaza Strip. They seem to view Netanyahu as an obstacle to achieving these
objectives.
Like many Arabs, Palestinians clearly consider Netanyahu a tough leader who
stands up to terrorists' threats and attacks, but they dislike that he has
managed to garner a great deal of respect in the international community -- even
the President of the Sovereignty Council of Sudan, Abdel Fattah al-Burhan,
openly met with him in public.
The terrorists of the Middle East have always despised Netanyahu. They pray for
the day that he is ousted from office -- whether by the ballot box or by the
courts, for accepting cigars and champagne from his friends. If that happens,
Iran, Hamas, Palestinian Islamic Jihad and Hezbollah will no doubt celebrate --
publicly passing out candies, as they often do each time a Jew is killed or
injured in a terrorist attack.
The Palestinians' attempt to influence Israeli voters is not only a bid at
meddling in the internal affairs of Israel, but also a dangerous attempt to
persuade Israelis to choose a weak and inexperienced leader whom they believe
they can play for a fool and control through terrorism and threats.
It is up to Israel's voters which way they will go.
*Bassam Tawil is based in the Middle East
© 2020 Gatestone Institute. All rights reserved. The articles printed here do
not necessarily reflect the views of the Editors or of Gatestone Institute. No
part of the Gatestone website or any of its contents may be reproduced, copied
or modified, without the prior written consent of Gatestone Institute.
Iran's Election Result Has Seriously Undermined the Ayatollahs' Credibility
Con Coughlin/Gatestone Institute/February 27/2020
In many respects the ayatollahs only have themselves to blame for this dire
outcome. Prior to the poll they attempted to fix the election in their favour by
refusing to allow large numbers of potential candidates, many of whom were
highly critical of how the country is being run, even to contest the election.
This maneuver meant that around half of all candidates, including 90 serving
members of the outgoing parliament, were disqualified prior to the election,
prompting a nationwide boycott over what many Iranians regarded as a sham
election.
The result is, as the outcome from the parliamentary elections has graphically
illustrated, that growing numbers of ordinary Iranians are now desperate to see
fundamental changes in the way their country is run, changes that can only take
place when the ayatollahs finally admit that they can no longer have the support
they need to keep their repressive regime in power.
Iran's ruling regime is facing a credibility crisis in the wake of this week's
parliamentary election results, as the vast majority of Iranians demonstrated
their contempt for the way their country is being run through the simple
expedient of refusing to vote. Pictured: An Iranian man casts his ballot at a
polling station in Tehran on February 21, 2020. (Photo by Atta Kenare/AFP via
Getty Images)
Iran's ruling regime is facing a credibility crisis in the wake of this week's
parliamentary election results, as the vast majority of Iranians demonstrated
their contempt for the way their country is being run through the simple
expedient of refusing to vote.
Prior to the vote, Ayatollah Ali Khamenei, the country's Supreme Leader, made an
impassioned plea to voters to demonstrate their support for the regime by
casting their vote for the regime's designated candidates, warning that
boycotting the election would provide US President Donald Trump with a
propaganda victory.
"Anyone who cares about Iran's national interests should participate," he
declared, adding that Iran's "enemies want to see what the results of the US
maximum pressure are" -- a reference to the punitive sanctions regime that has
been imposed on Tehran by the Trump administration.
To judge by the eventual outcome, though, the Iranian public had other ideas
and, instead of responding to Mr Khamenei's rallying cry, chose to vent their
deepening anger at the hardliners' responsible for running the country by opting
not to vote.
While the hardliners tried to put a brave face on Sunday's result by claiming
that the conservatives, who already run the legislature, had achieved an
overwhelming victory, a closer inspection of the vote told a very different
story, revealing that the country had experienced its lowest turn-out in an
election since the 1979 Islamic revolution, with just 42 percent of the voters
bothering to participate.
The result indicated that turnout had dropped by a third since the last
parliamentary elections in 2016, which saw the victory of supposedly moderate
politicians.
Perhaps the biggest embarrassment for the ayatollahs came in Tehran where, while
the hardliners were able to claim victory by winning all 30 of the city's seats,
they were able to achieve this feat because 75 percent of the city's registered
voters decided not to cast their ballot.
Thus, far from securing the unequivocal declaration of support the ayatollahs
had been seeking, Mr Khamenei and his acolytes have been left with a large
amount of egg on their faces, as the decision by the overwhelming majority of
voters not even to participate in the vote now raises serious questions about
the entire credibility of the country's present ruling class.
In many respects the ayatollahs only have themselves to blame for this dire
outcome. Prior to the poll they attempted to fix the election in their favour by
refusing to allow large numbers of potential candidates, many of whom were
highly critical of how the country is being run, even to contest the election.
This maneuver meant that around half of all candidates, including 90 serving
members of the outgoing parliament, were disqualified prior to the election,
prompting a nationwide boycott over what many Iranians regarded as a sham
election.
The other factor that has played a significant role in the development of the
increasingly hostile attitude that many Iranians apparently have towards their
rulers is the regime's woeful record on a number of key issues, from its
disastrous handling of the economy to, more recently, its hapless response to
the assassination by a US drone strike of the country's notorious terrorist
mastermind, Qassem Soleimani.
Having vowed to avenge the terrorist's demise, the regime then managed further
to increase its international ostracism by accidentally shooting down a
Ukrainian civilian aircraft, with the loss of all 176 passengers and crew on
board.
The result is, as the outcome from the parliamentary elections has graphically
illustrated, that growing numbers of ordinary Iranians are now desperate to see
fundamental changes in the way their country is run, changes that can only take
place when the ayatollahs finally admit that they can no longer have the support
they need to keep their repressive regime in power.
*Con Coughlin is the Telegraph's Defence and Foreign Affairs Editor and a
Distinguished Senior Fellow at Gatestone Institute.
© 2020 Gatestone Institute. All rights reserved. The articles printed here do
not necessarily reflect the views of the Editors or of Gatestone Institute. No
part of the Gatestone website or any of its contents may be reproduced, copied
or modified, without the prior written consent of Gatestone Institute.
Islamic Jihad rises with Iranian-Syrian support
Sami Moubayed/The Arab Weekly/February 27/2020
With support from Tehran and Damascus, Islamic Jihad might surprise everybody
and perform well in elections this year.
Mourners carry the flag of the Islamic Jihad group during the funeral of two
members, killed in Israeli air strikes near Damascus, at a mosque in the
Palestinian camp of Yarmuk, south of Damascus, February 24. (AFP)
Less costly to fund. Mourners carry the flag of the Islamic Jihad group during
the funeral of two members, killed in Israeli air strikes near Damascus, at a
mosque in the Palestinian camp of Yarmuk, south of Damascus, February 24. (AFP)
BEIRUT - Israel carried out air strikes February 24 over Damascus, killing at
least two people. The intended target, it seems, was Ziyad Nakhaleh, the
57-year-old head of the Islamic Jihad movement in Palestine.
Last November, the Israeli Defence Forces tried to assassinate Akram al-Ajouri,
another leader of Islamic Jihad, striking at his home in the upmarket
residential neighbourhood of West Mezzeh, also in Damascus.
Both men are part of Islamic Jihad’s leadership elected in September 2018. Five
of them are based abroad, commuting between Syria, Lebanon and Iran.
Nakhaleh spent 14 years in Israeli prisons and, upon his release, was one of the
co-founders of Islamic Jihad. He was appointed to its first Shura Council by
founder Fathi Shaqaqi. He was also tasked with laying the groundwork for Saraya
al-Quds, the military wing of Islamic Jihad, with which he remains a very
prominent and influential figure, explaining why Israel wants him dead.
Nakhaleh played a critical role in the first intifada in 1987 and was arrested
one year later and banished to southern Lebanon, where he lived until 1994. He
moved to Beirut after the election of Hassan Nasrallah as secretary-general of
Hezbollah, who was and remains a good friend of his, and finally to Damascus.
Unlike Hamas’s Khaled Meshaal, Nakhaleh did not voice opposition to the Syrians
and refused to follow the Muslim Brotherhood in Cairo after the 2012 election of
Muhammad Morsi. In 2014, he played an important role in the Gaza ceasefire talks
in Egypt. The same year he was placed on the US terrorist list with a $5 million
bounty on his head.
Nakhaleh is on Israeli Prime Minister Binyamin Netanyahu’s hit list, accused of
being behind the latest escalation in Gaza. He has revived Islamic Jihad after
seven years of slumber, restoring its previous aura on the Palestinian street
and reviving its status as a strategic partner of Hamas, rather than a
subordinate.
Diminishing Iranian influence in Gaza
“Iran, rather than Syria, is the real patron of Islamic Jihad,” said Tareq
Baconi, a Palestinian analyst at the International Crisis Group in Belgium.
“Syria, however, is one of the few countries that allows the movement to be
located above ground.”
That was done mainly to keep a Syrian back channel open with the Palestinian
territories after relations with Hamas were suspended in 2012, when they packed
up and left Syria, snuggling up instead to the Muslim Brotherhood government in
Cairo and setting up base in Doha, which was actively pursuing regime change in
Damascus.
Hamas bankrolled the armed opposition in the Yarmouk Camp, providing it with
weapons and mines, and Meshaal raised the tricolour flag of the Syrian
opposition, making rapprochement with Damascus virtually impossible.
The Iranians tried hard to mend relations between Hamas and Syria, after it
became clear to them that Bashar al-Assad was going nowhere, as did Hezbollah.
But the Syrian government demanded a complete break between Hamas and Qatar,
along with the toppling of Khaled Meshal, refusing to restore any Hamas' assets
that they had seized.
When rapprochement failed, Iran and Hezbollah settled for a Damascus-Islamic
jihad axis instead, one that would keep the so-called “Axis of the Resistance”
intact to serve Iranian interests in the Arab world.
The money for Islamic Jihad would come from Iran but Islamic Jihad bases,
training camps and senior leadership would be in Syria, upholding a long-held
Palestinian tradition of waging war against Israel from “countries of the
necklace” (duwal al-tawq) that surround Israel, namely Jordan, Lebanon or Syria.
That made more sense after Hamas slipped out of Iranian control, as Iranian
money stopped entering the Gaza Strip. Iranian patronage of Hamas dates to 1993
when its leadership was invited to open an office in Tehran after they opposed
the Oslo Accords. By 2007, Iran was bankrolling them with $120 million per year,
money that Iran no longer has after its resources were stretched thin by the
Syrian conflict.
A win-win scenario
Islamic Jihad, with its new leadership, is less costly to fund and more
politically rewarding, given Hamas’s collapsing powerbase in Gaza, after years
of poor government marred by corruption, lack of basic services and soaring
unemployment.
Additionally, Islamic Jihad is “more amenable to Iranian dictates than Hamas,”
Baconi said. It is less willing to argue and more willing to accept orders with
no questions asked. It will be using Iranian and Syrian support to stand in
upcoming Palestinian parliamentary elections, which Palestinian President
Mahmoud Abbas has called for this year, although the precise date has yet to be
revealed.
When the Palestinians last voted in 2006, Hamas won 74 out of 132 seats in
parliament, a majority it will have a hard time matching in 2020.
With support from Tehran and Damascus, however, Islamic Jihad might surprise
everybody and perform well. Unlike Hamas, it carries no burden of poor
governance and seems to be gaining new members by the day because of its resumed
rocket attacks against Israel and its position on US President Donald Trump’s
Deal of the Century.
The unintended consequences of Khamenei’s latest power grab
Dr. Majid Rafizadeh/Arab News/February 27/2020
In yet another authoritarian push, Iran’s Supreme Leader Ali Khamenei has scored
a victory by consolidating his autonomous rule because his social and political
base — the hard-liners — made significant gains in last week’s parliamentary
elections.
The triumph of the hard-liners was most likely premeditated and predetermined by
the supreme leader. The Guardian Council, whose members are directly or
indirectly appointed by Khamenei, disqualified more than 7,000 candidates ahead
of the vote. The majority of those who were disqualified were from the
reformist, independent, pragmatic and moderate political parties.
From Khamenei’s perspective, pragmatism comes second to the revolutionary ideals
of the Islamic Republic, which include anti-Americanism, anti-Semitism,
exporting the principles of the revolution to other nations, and pursuing
hegemonic ambitions in the region. As a result, the regime made sure that those
who qualified and were elected are ideologues, staunchly loyal to the supreme
leader and the revolutionary goals of the Islamic Republic.
Khamenei normally instructs the Guardian Council either behind closed doors or
by the council taking notes from his public speeches. In the months prior to the
elections, Khamenei made several speeches warning the system against allowing
some candidates from standing in the elections. In one speech, according to the
Middle East Media Research Institute, he called for a “strong Majlis (Iran’s
parliament)” and clarified that by saying it must be made up of “courageous,
effective, obedient, motivated (candidates) loyal to Islam.” He added: “Anyone
who fears speaking out against a certain foreign power (the US) is not fit to
represent the honorable, mighty and brave Iranian public.”
The other objective of Khamenei and his hard-line circle is to further undermine
the presidential office. By losing the Majlis, President Hassan Rouhani has lost
the limited power that he possessed. He is now more like a figurehead who is
told exactly what to do, and his function is restricted to setting the tone for
Khamenei and the senior cadre of the Islamic Revolutionary Guard Corps on the
international stage.
This is why the reformists and even Rouhani and his fellow moderates have been
infuriated by Khamenei’s actions. Surprisingly, they have even been voicing
their criticisms in public. In a recent meeting with Iran’s provincial
governors, Rouhani warned that the biggest threat to Iran’s national sovereignty
comes when people perceive that elections are totally irrelevant. Rouhani added
that the country should not become similar to how it was during the shah’s
regime, when, he claimed, “it was determined in Tehran who would be elected and,
though the public voted as they pleased, at the end of the election the name of
the candidate pre-selected by Tehran was always revealed at the polling places.”
By ensuring the hard-liners dominate the Majlis, Khamenei is using another
authoritarian method to silence any opposition
By ensuring the hard-liners dominate the Majlis, Khamenei is using another
authoritarian method to silence any opposition to his decisions. He is also
stifling one of the few democratic elements left in the system in order to
further tighten his grip on power.
Khamenei has been more forcefully pursuing this trend in the last two years,
particularly after people began protesting in the streets in large numbers. For
example, the Majlis was not involved in the decision to hike gas prices a few
months ago — a move that sparked further widespread unrest. In 2018, Khamenei
also formed a committee, labeled the economic war room, which consists of two
hard-liners and one so-called moderate: The heads of the three branches of
government — Rouhani, Parliament Speaker Ali Larijani, and Chief Justice Ebrahim
Raisi. The committee essentially grants the supreme leader the power to enact
any law he desires by skirting parliament and Iran’s lawmakers.
But it is critical to point out that Khamenei, like other autocrats of the past,
is failing to recognize that, although he is gaining more power, his actions are
ushering in unintended consequences that endanger the survival of the entire
theocratic establishment.
While the Iranian people used to believe that they might be capable of changing
the regime from within, as well as countering Khamenei’s autonomous rule by
voting for reformists and moderates in elections, they now appear to have lost
that hope. Large sections of the Iranian populace have come to the realization
that it is impossible to change the regime from within. Instead, the only
solution is to force the theocratic establishment out. And this is why we are
increasingly hearing calls from the people asking Khamenei to step down, while
also chanting, “Reformists, hard-liners, the whole game is over.”
While Khamenei is robustly pushing to strengthen his rule by centralizing
control and crushing opposition, he is paradoxically endangering the survival of
the Islamic Republic by giving the Iranian people no option other than to seek
regime change.
• Dr. Majid Rafizadeh is an Iranian-American political scientist. He is a
leading expert on Iran and US foreign policy, a businessman and president of the
International American Council. Twitter: @Dr_Rafizadeh
Qatar’s role deepening the Palestinian political crisis
Dr. Hamdan Al-Shehri/Arab News/February 27/2020
Yahya Sinwar, right, Hamas’ leader in the Gaza Strip, with Hamas chief Ismail
Haniyeh, center, and Head of the Central Elections Commission Hanna Nasser, in
Gaza City. (AP Photo)
The world today — including some Arab countries — is searching for a solution to
the Palestinian issue that would serve the interests of the Palestinians and all
the peoples of the region. Solutions that achieve peace must be based on clear
foundations and agreed methodologies, the first of which is the Arab Peace
Initiative, which was first presented by Saudi Arabia at the Arab League summit
of 2002.
However, there are countries that get involved in the Arab-Israeli conflict and
promote work that is in the best interests of the Palestinians on the surface,
but ultimately serves Israel and its interests more. Specifically, it makes the
Palestinians themselves separated. These countries are Iran, Qatar and Turkey,
which magnify the Palestinian dispute and support Hamas over the Palestinian
Authority (PA) to weaken the latter’s political position in international
forums. Their actions are even supported by Israel. In fact, Yossi Cohen, the
head of Israel’s Mossad intelligence agency, recently visited Qatar to request
Doha’s continued support for Hamas.
Qatar has periodically provided millions of dollars in cash to Hamas to pay for
the Gaza Strip power plant, allow the group to pay its civil servants, and
provide aid to tens of thousands of poor families. According to reports, in the
years 2012 to 2018, Qatar transferred more than $1.1 billion to Gaza with the
approval of the Israeli government. Israel allows this in exchange for Hamas
ensuring calm in the south and as part of efforts to reach a long-term
cease-fire with the group.
Cohen’s visit to Doha can be considered in the context of calm talks between the
Palestinian factions in the Gaza Strip, and the fact Qatar plays a major role in
this process. Both Cohen and Herzl Halevi, the Israeli military’s chief of
southern command, traveled to Qatar via Jordan in a private plane that left Ben
Gurion Airport near Tel Aviv on Feb. 4 and returned less than 24 hours later.
Although Qatar supports Iran, Hamas and the Muslim Brotherhood, Israel maintains
close relations with it through the Qatari envoy to the Gaza Strip, Mohammed Al-Emadi.
It was Israeli Prime Minister Benjamin Netanyahu who asked Cohen to travel to
Qatar and ask Doha to continue supporting Hamas, according to former Defense
Minister Avigdor Lieberman.
The return of Qatar to the political scene, especially regarding Israel and
Hamas, confirms Hamas’ defection from the PA, deepening the Palestinian
political crisis because it gives a justification for Israel to evade any peace
plan or initiative that insists on the PA being the sole representative of the
Palestinians.
In this way, the Hamas-PA conflict, which does not serve the Palestinian cause,
continues. Hamas insists it is the troubled party in the Palestinian equation,
but the fact is the group is unable to achieve any victory. Rather, it carries
out nothing more than provocations, to which Israel responds with more attacks
and which are paid for by the simple civilians.
Hamas’ defection from the PA and the role that it plays in the conflict
guarantees that it will be funded by Qatar and that Israel will benefit. Israel
is also given intelligence through Qatar and Hamas members, who monitor everyone
who threatens Israel’s security. There are many agreements under the table that
primarily serve Israel. Paradoxically, Qatar continues to promote, through its
Al-Jazeera TV channel, that it stands with Palestine and the Palestinian cause.
But we all know that Qatar, Turkey and even Iran do not really want to provide
anything real, other than slogans, to Palestine. Indeed, Tehran is today present
on the borders of Israel but has not provided any effective assistance to the
Palestinians; nothing more than slogans, which will not change anything on the
ground.
*Dr. Hamdan Al-Shehri is a political analyst and international relations
scholar. Twitter: @DrHamsheri
Mubarak’s positive traits worth remembering
Dr. Dania Koleilat Khatib/Arab News/February 27/2020
Hosni Mubarak, who passed away on Tuesday at the age of 91, left behind the
legacy of a man who ruled Egypt for 30 years, from 1981 until 2011. He had the
longest rule over Egypt since Mohammed Ali Pasha, who founded the country as a
modern independent state in the 19th century.
During his rule, the economic conditions in Egypt kept on worsening until they
led to the uprising that ended his control over the country. However, as the
Arab uprisings unfolded further and the world watched other rulers brutally
crush protests, one should pay tribute to Mubarak for respecting the will of the
people and leaving his seat gracefully.
On this, one should compare Mubarak to Bashar Assad. If we see what Assad did to
keep his “seat,” we can appreciate Mubarak. One might argue that internal
pressure was applied on Mubarak. The same pressure was exerted on Assad, as well
as from the international community, but he snubbed it and held on to power. One
might argue that the army did not stand with Mubarak. But again large factions
of the army in Syria did not accept Assad’s orders to shoot at protesters, hence
the formation of the Free Syrian Army. Nevertheless, the headstrong and arrogant
Assad went after the protesters and called on pro-Iranian militias to supplement
his forces.
The same happened with Libya’s Muammar Qaddafi. He did not accept that his
people did not want him anymore. His arrogance was above everything. He hired
mercenaries from Chadto slaughter his own people. He instructed the forces loyal
to him to rape women in Misrata to humiliate the peoplewho dared to defy his
40-year-old rule. Qaddafi and Assad are criminals who placed themselves above
their people and felt they had the right to be brutal to preserve their power.
Qaddafi was toppled only after an intense air campaign by Western forces. Assad
is still defiant, despite half a million deaths and half of the Syrian people
becoming either internally displaced or refugees. When you see those rulers and
how evil and brutal they are, you tend to respect Mubarak. He was the one who
preferred to give up power rather than see his country drown in blood.
Nevertheless, one cannot describe Mubarak’s rule as being marked with
prosperity. It was more of an era of crony capitalism. His sons partnered with
affluent businessmen and controlled the economy. However, today Egypt is not
really any better off. The sectors that were once controlled by oligarchs are
now controlled by the army and its generals. Therefore, the revolution did not
really lead Egypt to a free market economy. Another factor that really did not
help Mubarak was population growth, with the rentier economic model brought in
by Gamal Abdel Nasser and followed by Anwar Sadat and Mubarak no longer able to
cater to the growing population’s basic needs. Hence, the discontent that led to
the uprising in Tahrir Square. However, one should recognize that Mubarak, for
all his faults domestically, was a skilled mediator. He played a big role in the
Palestinian-Israeli peace process. On his death, Palestinian and Israeli leaders
alike rushed to praise his role as a regional mediator. He was also able to
contain Gaza at the eastern border of his country and preserve the stability of
Egypt amid tumult in the region.
He was the one who preferred to give up power rather than see his country drown
in blood. Despite preserving Sadat’s peace agreement with Israel, he kept the
Israelisat arm’s length. The normalization with Israel was described as a cold
peace. He kept interactions to a minimum and did not deepen a relationship that
was viewed negatively by a large faction of Egyptian society. At the same time,
he did not want to expand ties before Israel granted the Palestinians their
legal right, namely an independent and sovereign state.
During Mubarak’s rule, Egypt played an important role in Arab diplomacy. It
exercised soft power, juggling between events and managing crises. However, as
Mubarak got old, he became more secluded and so did Egypt. In the later years of
his rule, Egypt witnessed a disengagement from Arab affairs and the gradual loss
of soft power.
Today, as the world says farewell to one of the longest-ruling rulers of modern
history, one should also remember his positive traits.
*Dr. Dania Koleilat Khatib is a specialist in US-Arab relations with a focus on
lobbying. She holds a PhD in politics from the University of Exeter and is an
affiliated scholar with the Issam Fares Institute for Public Policy and
International Affairs at the American University of Beirut.
Why Germany’s political machinations matter to the world
Cornelia Meyer/Arab News/February 27/2020
What unfolded in Germany on Tuesday was realpolitik at its finest. The
leadership race in the Christian Democratic Union (CDU) was flung wide open when
Annegret Kramp-Karrenbauer (AKK) resigned her position a few weeks ago. The
usual suspects were expected to throw their hats into the ring, including Health
Minister Jens Spahn, North Rhine-Westphalia premier Armin Laschet, and Friedrich
Merz, the former chairman of the CDU/Christian Social Union (CSU) parliamentary
group, ex-chairman of BlackRock in Germany and erstwhile nemesis of Chancellor
Angela Merkel when she assumed the leadership of the party. Then the unexpected
happened: Spahn, the right-wing critic of Merkel’s immigration policy, abruptly
dropped out of the race and backed the much more liberal Laschet, who is seen as
an ally of the chancellor and a supporter of her policies. Spahn is
ideologically a lot closer to the conservative Merz, who has no time for
Merkel’s immigration policy, is a fiscal hawk and generally feels that the CDU
has drifted too far to the left.
While Spahn’s action might look surprising, it is a clever move on the political
chessboard. He is just 39 years old and still has time. Rising alongside Laschet
as his No. 2 is, therefore, a good option. He will be able to garner the support
of some of the membership that is to the right of Laschet, as well as the
party’s young Turks. As opposed to Merz, who is a millionaire, a divisive figure
and is often seen as out of touch with the daily concerns of the less well off,
Laschet is emollient and a bridge-builder. Hence, Spahn backed the horse he felt
had the best chance of winning, especially once he adds his right-wing and youth
credentials to the mix.This is a blow to Merz’s candidacy and he was quick to
assert that the leadership election, set for April 25, will be nothing less than
a decision on the soul of the party. Merz is not known for building bridges,
which might in the end provide an opening for Markus Soeder, scion of the CDU’s
sister party, the Bavarian CSU, to become the candidate for chancellor at the
next election. Soeder plays his cards well and knows how to jump on the
bandwagon of what is in vogue at any given time — be it immigration or green
credentials. He may ooze Bavarian charm but, make no mistake, he is about power
at heart.
A Laschet-Spahn union might just ensure that the chancellorship remains within
the purview of the CDU, should the conservatives win next year’s federal
election. Soeder assured his supporters at an Ash Wednesday rally in Passau that
he was able to work with anybody who took the helm of the party come April 25.
This all sounds like the intricacies of German politics, so why does it matter
to the rest of the world? Germany is the world’s fourth-largest economy and
Europe’s biggest. It is flirting with recession, which means it is doubly
important there is a functioning government, and who holds the keys to the
chancellor’s residence takes on added significance.
The coalition between the Social Democrats and the CDU/CSU is on shaky ground to
put it mildly. The decision of Finance Minister Olaf Scholz to bail out heavily
indebted communes with federal funds has the fiscally conservative Merz and
Spahn up in arms, especially as it might pierce the limit of federal
indebtedness, which has its foundations in the constitution. If Merz headed the
CDU, it would more than likely sound the death knell for the coalition. Laschet,
on the other hand, might just be able to drag the cooperation out.
The coalition between the Social Democrats and the CDU/CSU is on shaky ground to
put it mildly.
Merkel is reaching the end of her tenure as the head of government. She is a
weakened politician and her party needs to gain a sense of direction, which the
outgoing AKK could not provide. Europe needs to know which way Germany is
headed. Brexit, immigration and the indebtedness of Italy are all very important
issues that will keep the EU busy for the remainder of the year. EU leaders need
to get a sense of Germany’s direction in order to calibrate their positions.
Many would hold their breath if the coalition government in Berlin fell and
there were new elections. Last time around, negotiations took a good six months
and a failed attempt by the CDU at working with the Greens and the Liberal
Democrats before Europe’s largest economy had a government that was fit for
purpose.
A rudderless Germany is not what Europe — or the world for that matter — needs
in the face of Brexit, conflicts in the Middle East, and the coronavirus
outbreak, which will shave points off global growth forecasts.
*Cornelia Meyer is a business consultant, macro-economist and energy expert.
Twitter: @MeyerResources
Turkish-Russian tensions over Syria about to come to a head
Talmiz Ahmad/Arab News/February 27/2020
Turkey’s brinkmanship, which has characterized its diplomacy in Syria, has
exhausted its value. President Recep Tayyip Erdogan now has to decide on his
crucial next steps: Accommodation with the Syrian government and its ally,
Russia, or a war that could alienate Turkey from Moscow, its political,
military, energy and economic partner.
Events over the last month have steadily sharpened the divide between Turkey and
Russia, reflecting their deep differences about the future scenario in Syria. In
this period, Syrian forces, backed by Russian air support and Iran-backed
militants, have made remarkable progress in retaking towns and villages in the
extended Idlib area; occupying Maaret Al-Numan on Jan. 26 and then Saraqeb, just
10 kilometers from Idlib city, on Feb. 6. Taking Saraqeb, at the junction of
both the M5 highway from Aleppo to Damascus and the M4 from Aleppo to Latakia,
created the conditions for the reopening of these two economic lifelines.
However, Turkey-backed rebels announced they had retaken the town on Thursday.
Several of Turkey’s observation posts are now surrounded by Syrian troops. In
sporadic skirmishes, 16 Turkish soldiers have been killed this month. Over the
last two months, the fighting has displaced nearly a million Syrians, who have
rushed to the Turkish border for safety.
So far, most of the fighting on Turkey’s behalf has been done by the Syrian
National Army (SNA), which is made up of elements of the old rebel group, the
Free Syrian Army, that has now come under Turkish patronage, augmented by local
Turkmen and Arab fighters. There are reports that Turkish forces are also
working closely with extremist elements in Idlib, particularly Hayat Tahrir
Al-Sham (HTS) and the National Liberation Front (NLF). HTS is believed to
control most of Idlib and, with the NLF, leads the fighting there, including
counterattacks against Syrian forces.
Turkey’s ties with HTS are central to its interests in northern Syria and are
the source of conflict with the Assad regime and Russia. In terms of the Sochi
agreement of 2018, Turkey agreed to separate the extremist fighters from the
“moderates,” integrate the latter with the SNA, and open the door for the
Syrians and Russians to fight the extremists and take back Idlib. Over the last
18 months, Turkey has not been able to achieve this. HTS refuses to join the
Turkey-sponsored “moderate” entity, instead wishing to adhere to its ideals and
fight to the bitter end — hence the decision of Syria and Russia to end the
impasse and open hostilities.
This is a body blow to Turkish interests. The rebel fighters at Idlib give it
the firepower it needs to maintain its presence in northern Syria, keep the
Syrian Kurds under control, and remain an influential factor in shaping the
future political order in Syria. On the other hand, both Damascus and Moscow are
viscerally hostile to the extremists and advocate the withdrawal of Turkish
troops to ensure the territorial integrity of Syria.
Putin has made tough statements squarely blaming Turkey for the differences and
affirming support for the Assad government
The ground fighting has been marked by parallel diplomatic efforts to bridge
differences and avoid escalation. The most important interaction was the one in
Moscow on Feb. 18. There, Russia offered the principles of a settlement: The
setting up of a 15-kilometer-wide de-escalation zone at the Syria-Turkey border;
Russian checkpoints in the Turkish-controlled parts of Idlib and Afrin; and the
opening of the M5 and M4 highways, with traffic under joint Russian-Turkish
control.
Turkey rejected this plan, since it would deprive it of all its territorial
gains in the region. It demanded instead that Syrian forces vacate all the areas
occupied in the recent fighting. Ankara has now deployed about 10,000 soldiers
on the outskirts of Idlib, facing the Syrian forces and thus setting the stage
for a direct conflict between them.
Amid these escalating tensions, Erdogan has continued his brinkmanship — he paid
a visit to Ukraine in early February, criticized the occupation of Crimea by
Russia, and offered military assistance to Kiev. He then called Vladimir Putin
to clear the air. He has also spoken to US President Donald Trump and obtained
statements of support on Idlib from Secretary of State Mike Pompeo. Erdogan has
also asked for Patriot missiles, but this request has not been accepted, while
the US has refused to join the fighting in Syria.
Putin has responded with tough statements squarely blaming Turkey for the
differences and affirming support for the Assad government. Russia has also
reached out to the Syrian Kurds, who are feeling betrayed by Trump after he gave
Turkey a free hand last October to intervene militarily in their territories
east of the Euphrates. Now, under Russian encouragement, they seem amenable to
engaging with the Assad government.
Observers are speculating about the next turn of events — an all-out war, a
significant Turkish shift in favor of the West, particularly the US, or a
compromise arrangement broadly along the lines of what was offered by Russia
last week? Erdogan has made some bellicose statements demanding the withdrawal
of Syrian troops from around his observation posts by the end of the month, but
has also acknowledged he does not control the airspace. It is unlikely that he
will jeopardize Turkey’s substantial ties with Russia. Perhaps what the
situation needs is a face-saving formula that would appear to serve at least
some of Turkey’s interests; possibly Russian support for its outreach to Libya
and its interests in the Eastern Mediterranean.
The outcome of this imbroglio should be known over the coming few days.
• Talmiz Ahmad is an author and former Indian ambassador to Saudi Arabia, Oman
and the UAE. He holds the Ram Sathe Chair for International Studies at the
Symbiosis International University, Pune, India.
Coronavirus calculus: Unpacking the economic costs of
pandemics
Omar Al-Ubaydli/Al Arabiya/February 27/2020
The health threats posed by the coronavirus have dominated media for the last
month, and in the Arab world, they have become tangible, with the number of
cases rising. While it remains too early to assess the economic impact of the
coronavirus, we can draw on studies of previous pandemics to understand the
primary channels. The first tranche of economic costs are those caused directly
by a pandemic. The loss of life, and the reduced ability of sufferers to work.
There is also the treatment cost, which can be considerable: the drugs, the
facilities, including elaborate quarantines, the emergency evacuations, the
extra staff hours, the masks, the sterilizers, and so on. Moreover, new
processes will have to be developed, and people trained under pressure to
implement these processes. Saudi authorities will surely be working around the
clock preparing for the 2020 Hajj pilgrimage, which represents a massive
technical challenge for public health experts. For the most part, this first
tranche of economic costs is irrecoverable, though it does confer the benefit of
capacity-building for future crises. This silver lining certainly applies to the
costs associated with developing a vaccine like the coronavirus vaccine
currently under development, and these costs should be classified as an
investment.
The second tranche is the first-order indirect effects of the response measures:
flight cancelations, border closings, summits postponements, representing
foregone economically productive activity. For example, China took the prudent
decision of indefinitely postponing its 2020 Formula 1 race. Insurance policies
help diffuse these costs, such as the loss of sponsorship and TV revenues, but
the costs still have to be borne by society at large. Saudi Arabia’s recent
announcement of limits on Umrah pilgrims falls under this category.
These costs are partially recoverable; postponed events can eventually still
yield significant benefits. For example, some Umrah pilgrims are likely to
reschedule to a future date when travel is safe.
In the long-run, by far the biggest economic impact is in the second-order
indirect effects, which refers to the downstream impact of the first-order
indirect effects. When schools close, people have to take time off work to
supervise their children. Many workers volunteer or are ordered to engage in
prophylactic absenteeism from work. That means lower spending on restaurants for
business lunches, and less work for taxis that ferry people between work
engagements. In China, entire factories are closed for this reason.
More importantly, the widespread disengagement from public life has a large,
adverse economic impact. Cinemas sit empty, the ice cream trucks that serve
children in the park are idle, and employees in airport gift stores stare at
their mobile phones.
Similarly, the Gulf countries are hurting at present due to the sharp decline in
oil prices, as Brent has fallen to around $50 per barrel after seemingly
stabilizing at $60 for most of 2019. The world is experiencing a large-scale
contraction in aggregate demand, and the price of key material inputs, including
oil and gas, inevitably suffer.
Again, many of these costs are gone forever. Once authorities contain the
coronavirus, and most of the restrictions are lifted, there will be a noticeable
boost to consumption: people will be aching for a meal at their favorite
restaurant, or a session at their local gym. But it is unlikely that the
increase will compensate for the cumulative decrease experienced during the
pandemic. For example, workers who are legally required to stay at home do not,
upon returning to work, set about working double shifts to compensate for the
lost hours; they just resume normal service, meaning that several days of output
are simply gone.
Naturally, with the advent of the internet, children can continue to engage in
distance learning during the pandemic, and many workers can work well from home.
But for chemistry students in a laboratory, or constructions workers in a
building site, there is no substitute for the hours put in on site.
In a 2009 paper in the UK’s leading medical publication, the British Medical
Journal, Prof. Richard Smith and his colleagues developed a model that accounted
for these various channels, and used it to estimate the impact of an influenza
pandemic on the UK. Their estimates varied from around 1 to 5 percent of GDP,
depending on the level of fatalities. These figures likely underestimate the
impact of a global pandemic, which is what the coronavirus is threatening to
become.
But one should not fixate on the economic costs. Given that China has been at
the center of the unfolding crisis, it is worth closing with a quote by former
US president, John F. Kennedy: “The Chinese use two brush strokes to write the
word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In
a crisis, be aware of the danger – but recognize the opportunity.”
Lessons from Warren Buffet’s ‘urgent zone’ and managing
coronavirus risk
Oliver Schutzmann/Al Arabiya/February 27/2020
Warren Buffett, the “Oracle of Omaha” and one of the world’s most successful
investors, published his annual letter to shareholders a few days ago. While the
coronavirus, also known as COVID-19, was not mentioned, his thoughts on managing
risk provide valuable lessons for businesses during the disease’s deadly
outbreak.Whether or not the coronavirus plays out to become a global pandemic
remains to be seen, but it has so far spread to dozens of countries outside of
China, including almost all the G20 countries, with over 80,000 confirmed cases.
It is worth analyzing Berkshire Hathaway’s approach to risk, and trying to find
some cues there. Buffet’s focus on risk in his letter centered on a topic of
huge importance to Berkshire Hathaway investors: Buffett and his partner Charlie
Munger’s age. Buffett is 89; Munger is 96. Buffett addresses this risk by
writing:
“Charlie and I long ago entered the urgent zone. That’s not exactly great news
for us. But Berkshire shareholders need not worry: Your company is 100 percent
prepared for our departure.”He then proceeds to list the succession planning and
structural safeguards that exist to mitigate the risk (actually, a certainty)
that both of them will not be around for too many more years. In light of the
progress of COVID-19, and the impact it is having on business and markets, the
virus could also be said to have entered the urgent zone.
Of course, Berkshire Hathaway, is heavily invested in the insurance sector, so
risk assessment and management are very much part of everyday business. But this
focus on risk informs the entire portfolio, valued at some $560 billion, and
Buffett underlines the criticality of risk management at every stage of his
communication.
With decades of experience, he has been around long enough to understand that
risk can become reality in a heartbeat, and that good investors should plan for
that, not ignore it. “A major catastrophe that will dwarf hurricanes Katrina and
Michael will occur – perhaps tomorrow, perhaps many decades from now. “The Big
One” may come from a traditional source, such as wind or earthquake, or it may
be a total surprise involving, say, a cyber-attack having disastrous
consequences beyond anything insurers now contemplate,” Buffett said in his 2019
annual letter.
In other words, if you accept that disruption and crisis are inevitable, you are
more likely to respond in the right way for staff, shareholders and society.
COVID-19 may become what Buffett refers to the “The Big One.” The shipping
industry, often the forerunner of macro trends, has taken a significant hit due
to the coronavirus. Tim Huxley, founder of Mandarin Shipping, an Asian operator,
recently noted that the oil tanker market has “really fallen off a cliff” as
consumption in China dropped significantly in response to the virus dampening
demand. “There was one report of 600,000 barrels a day being cut from Sinopec’s
daily refinery production, which is about 12 percent of their capacity. You have
earnings on VLCCs (Very Large Crude Carriers) – which were pretty good at the
start of the year at $100,000 a day – dropping back to $25,000 now,” Huxley
said.
And it is not only the demand side that is suffering. China provides 14 percent
of all container shipping crews in the world. When those crew are unavailable,
there is an impact on the supply side. Meanwhile, factory closures have forced
companies including Apple to issue a rare profit warning on product availability
and product demand in China. While markets had shrugged off the risk of a
pandemic, on Monday they fell in unison as the impact of the virus began to
materialize. When the Italian authorities took drastic measures, the west took
fright. Closer to home, investment firm EFG Hermes canceled next week’s flagship
frontier and emerging markets investor conference in Dubai.
All of which comes together to force some hard questions in the boardroom: Are
we prepared for a major public health crisis? Is our disaster recovery plan
robust? How will we safeguard our people? What do we do if major disruption
occurs? Do we have a crisis communications plan?
While the fallout from COVID-19 continues to grow, there are more unknowns than
knowns on the investment landscape. Risk has risen, stock prices have fallen,
and many investors will continue to position themselves accordingly, moving
portfolios into safe haven assets. Companies need to be urgently addressing this
new risk. Management and investor relations teams need to be planning and
preparing to explain the situation and actions taken to their shareowners.
The single most important factor in any successful investment strategy is the
prudent management of risk. Investors take a risk with every asset class; the
only difference is degree.
As the world faces up to the shocking scale of COVID-19’s public health risk,
businesses, investors and market participants need to remain calm as they factor
this new element into their strategies. However, they also need to focus on
preparation, planning and risk mitigation should the global economy wake up one
morning and find itself in the urgent zone.