Michel Moawad stepped down as an MP after the port explosion in Beirut last August. AFP
Michel Moawad stepped down as an MP after the port explosion in Beirut last August. AFP
Michel Moawad stepped down as an MP after the port explosion in Beirut last August. AFP
Michel Moawad stepped down as an MP after the port explosion in Beirut last August. AFP

Son of slain president urges action before Lebanon becomes ‘failed state’


Elias Sakr
  • English
  • Arabic

Lebanon's economic crisis will lead to chaos if left unchecked, one of the country's political leaders has told The National.

For more than 15 years, Michel Moawad, leader of the Independence Movement, has campaigned for a sovereign and independent Lebanon.

But the country, he said, can ill-afford to wait for a new Parliament to begin tackling the worst economic crisis in its modern history.

The National is interviewing political and civil society figures  who are looking ahead to elections in 2022, claiming they can offer a route out of the crisis.

We are very close to reaching a comprehensive agreement that will bring major opposition groups under the umbrella of a uniform programme

Once known for its vibrant banking sector, tourism industry and nightlife, more than half of Lebanon's people are now in  poverty.

"The cost of inaction will be tremendous both for ordinary Lebanese and the international community if Lebanon were to turn into a failed state," Mr Moawad – the son of Rene Moawad, the Lebanese president murdered in November 1989 after just 18 days in office – told The National.

Mr Moawad was speaking from his residence in Baabda overlooking Beirut port – the site of a massive explosion in August which strained Lebanon's already battered economy.

Mr Moawad resigned from Parliament after the blast in protest at what he said was widespread corruption throughout the state.

  • Families of August 4 Beirut port blast victims carry portraits of the deceased during a protest near the scene of explosion in the Lebanese capital, on May 4 2021. EPA
    Families of August 4 Beirut port blast victims carry portraits of the deceased during a protest near the scene of explosion in the Lebanese capital, on May 4 2021. EPA
  • Family members of August 4 Beirut blast victims carry portraits of the deceased relatives, during a protest at the scene of the explosion, on May 4 2021. EPA
    Family members of August 4 Beirut blast victims carry portraits of the deceased relatives, during a protest at the scene of the explosion, on May 4 2021. EPA
  • Protesters gather at the scene of August 4 Beirut port blast that killed more than 200 people, on May 4 2021. EPA
    Protesters gather at the scene of August 4 Beirut port blast that killed more than 200 people, on May 4 2021. EPA
  • Families of the August 4 Beirut blast victims carry portraits of the deceased relatives as they stage a protest in the Lebanese capital. EPA
    Families of the August 4 Beirut blast victims carry portraits of the deceased relatives as they stage a protest in the Lebanese capital. EPA
  • Activists hang portraits of the victims of the August 4 Beirut port explosion on a wall in the Lebanese capital. Artist Brady Black, in partnership with the Art of Change organisation, drew more than 200 caricatures of the victims. EPA
    Activists hang portraits of the victims of the August 4 Beirut port explosion on a wall in the Lebanese capital. Artist Brady Black, in partnership with the Art of Change organisation, drew more than 200 caricatures of the victims. EPA
  • Activists hang portraits of the victims of the August 4 Beirut port explosion on a wall in the Lebanese capital. Artist Brady Black, in partnership with the Art of Change organisation, drew more than 200 caricatures of the victims. EPA
    Activists hang portraits of the victims of the August 4 Beirut port explosion on a wall in the Lebanese capital. Artist Brady Black, in partnership with the Art of Change organisation, drew more than 200 caricatures of the victims. EPA
  • Protesters carry portraits of August 4 Beirut port blast victims during a demonstration in the Lebanese capital on May 4 2021. EPA
    Protesters carry portraits of August 4 Beirut port blast victims during a demonstration in the Lebanese capital on May 4 2021. EPA
  • Artist Brady Black drew caricatures of more than 200 victims of the August 4 Beirut port blast as part of the campaign titled 'They Matter'. EPA
    Artist Brady Black drew caricatures of more than 200 victims of the August 4 Beirut port blast as part of the campaign titled 'They Matter'. EPA
  • Activists hang portraits of August 4 Beirut blast victims on a wall in the Lebanese capital. Artist Brady Black, in partnership with the Art of Change organisation, commemorated the deadly explosion that killed more than 200 people. EPA
    Activists hang portraits of August 4 Beirut blast victims on a wall in the Lebanese capital. Artist Brady Black, in partnership with the Art of Change organisation, commemorated the deadly explosion that killed more than 200 people. EPA
  • Silhouette images representing the unidentified victims were also part of the artist's tribute to Beirut port blast victims. EPA
    Silhouette images representing the unidentified victims were also part of the artist's tribute to Beirut port blast victims. EPA

He was joined by a number of independent MPs and members of the Kataeb party, another opposition group.

Since then, Mr Moawad has called for a transitional government of independent experts  to contain the crisis and prepare for parliamentary elections scheduled for May 2022.

But Mr Moawad's calls, like those of his opposition peers,  are falling on deaf ears.

Lebanon is still without a fully functioning government  and it is still not known what triggered the explosion, who owned the explosive chemicals stored there or why they were kept unsafely for six years at one of the region's busiest ports, with the knowledge of the country's top officials and security agencies.

A new economic model

Mr Moawad said the lack of accountability and worsening economic crisis led  the Independence Movement and like-minded opposition groups to rethink their programme beyond the traditional political divide over the pivotal issue of Iran-backed Hezbollah's weapons.

“Prioritising Lebanon’s national interests over foreign agendas is key to the stability and prosperity of our country but should go hand in hand with a new economic model that protects our free-market economy and upholds our liberal values while advancing social justice,” he said.

That model is currently being discussed with the Kataeb party among other opposition groups, Mr Moawad said.

“We are very close to reaching a comprehensive agreement that will bring major opposition groups under the umbrella of a uniform programme that touches on reforming Lebanon’s political system and economic model.”

This programme touches on a wide array of reforms, from the introduction of structural economic changes to decentralisation – one of the main political changes stipulated in the 1989 Syrian-Saudi brokered Taif agreement that ended Lebanon's 15-year civil war.

“Our ultimate objective is to build a functioning decentralised civic state that safeguards pluralism and allows the Lebanese to prosper,” he said.

Like his father, Mr Moawad has long-held the belief that Lebanon would prosper only when the state exercises its full sovereignty.  This was at the core of the alliance that emerged following the assassination of former prime minister Rafik Hariri in 2005, an event that divided the country into two major rival camps.

The western-backed alliance that brought Mr Moawad together with other members of the March 14 coalition pressured Damascus – blamed by many at the time for Mr Hariri's assassination – into withdrawing its forces from Lebanon after decades of political and military domination .

Rene Moawad died  when a car bomb hit his motorcade on Independence Day. He was known for his moderate positions and his efforts to bridge the gap between warring parties.

His assassination, less than three weeks after his election and the ratification of the Taif agreement, was widely blamed on Damascus.

Mr Moawad says his message resonates more than ever today because Lebanon can no longer afford the costs associated with regional tensions between Iran and its rivals.

The heavy toll the economic crisis is taking on the country’s armed forces was evident in the Lebanese army chief's recent, rare criticism of the ruling class.

"Where are we are heading? What are your plans?" Gen Joseph Aoun asked politicians in March as hundreds of Lebanese took to the streets to protest against a record plunge in the Lebanese pound, which has lost more than 85 per cent of its value against the dollar since August 2019.

  • An anti-government protester shouts slogans in front of the Lebanese Central Bank, at Hamra street, in Lebanon's capital Beirut. EPA
    An anti-government protester shouts slogans in front of the Lebanese Central Bank, at Hamra street, in Lebanon's capital Beirut. EPA
  • Anti-government protesters burn tyres and rubbish bins to block the road leading to Hamra street, during a rally against power cuts, the high cost of living and the low purchasing power of the Lebanese pound, in Beirut. EPA
    Anti-government protesters burn tyres and rubbish bins to block the road leading to Hamra street, during a rally against power cuts, the high cost of living and the low purchasing power of the Lebanese pound, in Beirut. EPA
  • Riot police stand guard in front of the Lebanese Central Bank during an anti-government demonstration. Many Lebanese are angered at the deadlock among political parties in forming a new Cabinet. EPA
    Riot police stand guard in front of the Lebanese Central Bank during an anti-government demonstration. Many Lebanese are angered at the deadlock among political parties in forming a new Cabinet. EPA
  • The Lebanese Central Bank is shrouded in black smoke from burning tyres and rubbish bins. EPA
    The Lebanese Central Bank is shrouded in black smoke from burning tyres and rubbish bins. EPA
  • An anti-government protester shout slogans during a demonstration in Beirut. The national currency has lost more than 85 per cent of its market value against the dollar. EPA
    An anti-government protester shout slogans during a demonstration in Beirut. The national currency has lost more than 85 per cent of its market value against the dollar. EPA
  • Demonstrators have also been protesting against power cuts, caused by fuel shortages and mismanagement in the electricity sector. EPA
    Demonstrators have also been protesting against power cuts, caused by fuel shortages and mismanagement in the electricity sector. EPA
  • An anti-government protester in front of the Lebanese Central Bank, at Hamra street, Beirut. EPA
    An anti-government protester in front of the Lebanese Central Bank, at Hamra street, Beirut. EPA
  • Riot police stand guard in front of the Lebanese Central Bank during an anti-government rally in Beirut. EPA
    Riot police stand guard in front of the Lebanese Central Bank during an anti-government rally in Beirut. EPA
  • Anti-government protesters block a main road in Beirut. EPA
    Anti-government protesters block a main road in Beirut. EPA

Since then, Gen Aoun has engaged major powers, including the US and France, to secure financial and logistical aid for the army, as discontent grows among soldiers whose salaries are losing value.

Co-ordinating international aid 

French Foreign Minister Jean Yves Le Drian warned Lebanese officials during a visit to Beirut last month that his government was preparing sanctions on officials they regard as responsible for obstructing the formation of a new Cabinet.

Mr Le Drian’s latest visit featured meetings with members of Lebanon’s growing opposition movement, including Mr Moawad.

Mr Moawad said he was urging the international community to support Lebanon's army, healthcare industry and education sector.

“Maintaining a strong and cohesive military institution and vital health and educational services is key to saving Lebanon and laying the foundations for a strong state,” Mr Moawad said.

“Otherwise, chaos will prevail.”

Awar Qalb

Director: Jamal Salem

Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman

Two stars

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

Rashid & Rajab

Director: Mohammed Saeed Harib

Stars: Shadi Alfons,  Marwan Abdullah, Doaa Mostafa Ragab 

Two stars out of five