What’s the deal with the Finance Ministry?
The Ministry of Finance in Lebanon has become a powerful tool for advancing Hezbollah’s interests, shaping its ability to sustain its influence and control over the country’s systems.
This ministry oversees critical financial operations, including customs, tax collection, public sector finances, and cash management, all of which have been exploited to Hezbollah’s benefit. For decades, customs evasion by Hezbollah-affiliated companies at ports and airports has been facilitated by the ministry, which acts as a shield, ensuring these entities avoid scrutiny. This explains why we had so much of Hezbollah and Assad’s explosives at the port. It also explains the metldowns of passengers arriving from Iran at the Beirut airport when, for the first time ever, they were searched by Lebanese customs. Remember that guy screaming “this is not Beirut! This is Tel Aviv” for simply having his bag checked at customs?
The ministry has further entrenched Hezbollah’s economic influence by prioritizing contracts and transactions with organizations affiliated with Hezbollah and Amal. Government accounts at the central bank are also controlled by the finance minister, who manages cash flow in a way that skews public sector operations in favor of these groups. This has extended to the growth of cash-based companies aligned with Hezbollah, which have been awarded lucrative government contracts to collect revenues. By resisting reforms such as e-government payments and maintaining manual cash transactions, these companies have exploited government funds for arbitrage and money laundering.
Tax collection and VAT administration have also been selectively enforced, allowing Hezbollah-linked companies and organizations to evade their financial obligations while others are subjected to strict measures. Also, the Minister of Finance holds significant power as their signature is legally required for all government decrees with financial implications. This authority has been used to wield veto power over public sector appointments and decisions, often under the guise of religious or political considerations. Payments due to other ministries and suppliers can be delayed or prioritized at the minister's discretion, giving Hezbollah and its allies substantial leverage over government operations.
So, after Hezbollah’s threats failed in stopping Joseph Aoun, then when their threats failed to install Najib Mikati and couldn’t stop us from appointing Nawaf Salam, they think they will be able to still protect their illegal parallel economy, and hold permanent veto power, despite them no longer being able to enforce those threats post-Syria and post their catastrophic “Gaza support” front they still, though with much less gusto, think was a “victory”.
The expansion of the cash economy, driven by these practices, has placed Lebanon on the Financial Action Task Force’s (FATF) grey list, further isolating the country economically. Despite international sanctions on Hezbollah, these cash companies have enabled money laundering and facilitated the militia’s financial activities. *cough* Qard El Hassan *cough*.
If we’re to introduce meaningful reforms as a country, it is non-negotiable that the Ministry of Finance be removed from the control of individuals and groups associated with Hezbollah.
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Hezbollah Needs a Fresh Excuse: Cue Saudi Foreign Minister’s Visit
After Nawaf Salam’s appointment, defying Hezbollah's directives, the group predictably sought an excuse to justify their loss of control. In this case, they claimed they were “betrayed” by the “other side,” spinning a narrative about a secret deal among other parliamentary members. According to this version, Hezbollah would “allow” the election of Joseph Aoun after years of obstruction, in exchange for the appointment of their fallback option, Najib Mikati. When this plan failed to materialize, Hezbollah’s representatives put on a show of outrage, dramatically accusing others of betrayal in the Baabda presidential palace, complete with threats and hyperbolic declarations about “cutting off hands.”
When their media disinformation campaign and fake news blitz on WhatsApp failed to gain traction, and Nawaf Salam publicly dismissed these rumors, Hezbollah was forced to confront an uncomfortable reality: their last-ditch effort to hold Lebanon hostage by monopolizing the finance ministry wasn’t going to succeed. However, beneath the surface, they might quietly prefer this outcome. Reconstruction funds are crucial to Hezbollah at the moment, and monopolizing the ministry could jeopardize access to that much-needed financial lifeline. Still, true to form, Hezbollah prioritizes optics and narrative control over reality, which is why they continue to spin this glaring defeat as a supposed victory—though even their loyal base might struggle to believe it this time.
Faced with the need to redirect blame and justify their failure, Hezbollah will likely resort to their familiar strategy of accusing external forces. Whether it’s the Saudis, the West, or some other external “enemy,” the group’s narrative will frame their failure as a result of outside interference rather than their own inability to achieve their goals through force. Enter Saudi Foreign Minister Prince Faisal bin Farhan Al-Saud, whose visit to Lebanon—the first in 15 years—comes at a particularly opportune moment. If the cabinet forms without Hezbollah securing the finance ministry, the group will almost certainly blame Saudi Arabia for exerting undue pressure on Lebanon. They’ll likely pivot to promises of eventual revenge, spinning a story that their base can digest, rather than admitting, “Sorry, we just couldn’t force our way this time.”
The result for us? A long-overdue opportunity to hold those responsible for stealing our money accountable. Riad Salameh, once shielded by Berri at all costs, was finally discarded when he outlived his usefulness and now sits in a jail cell—hopefully for the rest of his life, given the magnitude of his crimes. But this is just the beginning. Justice demands that his accomplices—those who protected him and shared in the spoils of the wealth they illegally took from all of us—be brought to account as well. Hopefully, they will soon follow him, ensuring that no one escapes responsibility for the harm they inflicted.
So, I’ll check back with you in a few days, and today, I’ll be watching closely what happens with Prince Faisal, and we can come back and analyze if this prediction and analysis was right, and if not, what actually happened.
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