Thursday, 19 March 2015

Finance Minister Khalil to continue crackdown on customs department


BEIURT: Finance Minister Ali Hasan Khalil vowed to continue efforts to fight the rampant corruption at Lebanon’s Customs Department as part of his crackdown on corruption in the public sector.


“We will not retreat but will increase our determination to complete reform,” he said after inspecting the customs department at Beirut’s port Thursday.


In order to minimize smuggling, the finance minister said that all cargo entering the port would be subject to inspection, despite criticism from merchants who complain of a delay in receiving cargo.


Traders have said that shipments that would usually be processed within 2 days of their arrival at the port are being stalled for weeks, due to the heightened inspection measures.


Khalil, however, said he would resolve the issue by increasing the number of inspectors. He also announced that the customs department would receive scanners that would expedite cargo inspection.


During Thursday’s Cabinet session, ministers discussed means of resolving issues burdening Lebanon’s customs department, Khalil said.


The finance minister, who urged the cooperation of all relevant parties, said a solution would require “painful decisions.”


Khalil partially attributed the prevalence of corruption and bribery to a “cooperation gap” between the ministry and the board of the customs department.


“The customs administration should determine what products are being transported and the measures that should be taken,” he said. “[The ministry’s] job is to provide its services and facilitate the work.”


Khalil is one of the first finance ministers who has publically acknowledged that the customs department is rife with corruption.


Experts and traders insist that the bribery and smuggling practices at the Port of Beirut and Rafic Hariri International Airport have been going on for years, and no one tried to put an end to it.


There are no official figures on how much money the government is losing each year from smuggling and tax evasion at customs, although independent sources estimate it to be more than $500 million a year.


Revenues from customs in Lebanon are one of the largest sources of income for the treasury.



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