Electricity, mobiles and cash: a snapshot of Lebanese grievances

BEIRUT — Lebanese are protesting outside failing state agencies they see as part of a corrupt system in the hands of the ruling elite, as well as at banks they deem part of the problem.

Protesters accuse sectarian political leaders of exploiting state resources for their own gain through networks of patronage and clientelism that mesh business and politics.

Where have Lebanese protested and why?

ELECTRICITE DU LIBAN (EDL)

Lebanon's electricity sector is at the heart of its financial crisis, bleeding some US$2 billion in state funds every year while failing to provide 24-hour power.

"This is one of the peak symbols of corruption," said Diyaa Hawshar, an electrician protesting outside state power firm EDL in Beirut. "We pay two bills, one for the government and another for generators."

Power cuts can last several hours every day.

People and businesses rely on so-called "generator mafias" who often have political ties and charge hefty fees to keep the lights on.

The average household ends up paying $300 to $400 a month on average for electricity, said Jad Chaaban, economics professor at the American University of Beirut.

Lebanon's minimum wage is the equivalent of $450 a month.

The government has for years touted plans to overhaul the sector including new power stations, fixing the grid and stopping electricity theft.

But the Lebanese saw no tangible progress by the time the prime minister resigned last week.

MOBILE OPERATORS

At the headquarters of a mobile operator, protesters lamented paying some of the region's most costly phone bills.

Lebanon has only two service providers, Alfa and Touch, which bring in a huge chunk of state revenues.

Workers came down to join the protest, furious at a plan to cut their benefits and salaries. They accused the ministry of trying to reduce costs at their expense.

A recent industry report seen by Reuters showed Lebanese spend on average five per cent of their household income on mobile services. In Egypt, the average is 1.4 per cent while in the United States it is 2.3.

A parliamentary committee has recently called for an inquiry into the telecoms duopoly, raising questions about fake tenders and squandering of public funds. It said operating costs had shot up 29 per cent from 2017 to 2018.

BANKING SECTOR

Outside banks, people have protested at policies they say have choked off lending to ordinary Lebanese as interest rates have moved higher and higher.

"Interest rates are very high and we can't pay them," said Fatima Jaber, 22, a student protesting outside the central bank in Beirut.

Rubbing salt into the wound, extracts of an official report which a local newspaper published last month suggested prominent Lebanese had benefited from a subsidized housing loan scheme.

A Lebanese official told Reuters that many state officials had benefited from such loans — which are meant to help people who cannot afford to pay for houses but have become hard to secure.

Jaber cited this as one of the reasons she was in the street.

Critics of the banks say they have reaped large profits even as economic growth has stagnated.

Bankers argue their sector is already the biggest source of tax revenue in the private sector.