VZCZCXRO2736
PP RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHLB #1828/01 3251620
ZNR UUUUU ZZH
P 211620Z NOV 07
FM AMEMBASSY BEIRUT
TO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RHEHNSC/WHITE HOUSE WASHDC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1704
RUEHC/SECSTATE WASHDC PRIORITY 0268
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 BEIRUT 001828 
 
SIPDIS 
 
SIPDIS 
 
NSC FOR ABRAMS/SINGH/GAVITO/YERGER 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PREL UNDP LE
SUBJECT: LEBANON: RECONSTRUCTION LAGS IN THE SOUTH 
 
SUMMARY 
------- 
 
¶1. (SBU) Alaa Abu Hommeen of the Lebanon Transparency 
Association (LTA) said in a November 13 meeting with PolOff 
that while reconstruction efforts in the south are visible, 
they are continuing to move at a slow rate due to corruption 
and a lack of transparency.  Hommeen said that the primary 
obstacles have been problems between the GOL and the Council 
of the South (COS), as well as a lack of progress in 
reconstruction by Hizballah's Jihad al-Bina (JAB).  End 
Summary. 
 
RECONSTURCTION SLOW DUE TO CORRUPTION 
------------------------------------- 
 
¶2. (SBU) Hommeen, the Program Manager of a new project titled 
"Promoting Democracy in the South" (a Middle East Partnership 
Initiative-supported program promoting democracy in southern 
Lebanon), noted that one major roadblock to reconstruction 
has been the on-going problem with the COS (Note: The COS is 
an organization created by the government which is supposed 
to be an independent agency, but, in reality, is controlled 
and managed by Speaker of Parliament Nabih Berri, a political 
ally of Hizballah . End Note.)  Hommeen reported that in the 
immediate months after the 2006 war with Israel, the GOL 
directed money to the COS in order to start the rebuilding 
process as quickly as possible.  According to Hommeen, the 
COS has been accused of corruption by a number of GOL 
officials. 
 
¶3. (SBU) According to Hommeen, the GOL alloted a large amount 
of its reconstruction budget to the COS.  Hommeen added that 
the GOL authorized the COS to reimburse people, who were 
either injured or had their homes damaged during the 2006 
war, with cash payments.  Hommeen said that if a person 
claimed to have been injured, he or she was only required to 
produce two doctors' signatures on a document with an 
official seal from the "mukhtar", or mayor (which, according 
to Hommeen is very easy to acquire) certifying that the 
person resides in the area and/or was injured by the war. 
However, Hommeen noted that many people approached the COS 
with false claims.  Hommeen mentioned one particular case 
where a man was paid LBP 6 million (USD 4 thousand) for a 
missing eye, when in fact both eyes were present and 
accounted for. 
 
¶4. (SBU) Hommeen said that a number of investigations began 
due to the high number of false claims being filed.  Hommeen 
noted that there are more than twenty seven fraud cases that 
have resulted from these allegations.  Hommeen added that 
since the scandals have broken out, the GOL no longer gives 
money to the COS to reimburse victims.  Instead, according to 
Hommeen, the GOL gives this money to the Central Bank of 
Lebanon (CBL).  Hommeen said that people now have to apply 
directly to the Ministry of Interior, which forwards their 
claims to a privately contracted company which then conducts 
an investigation of the person,s property and/or person. 
The company either certifies or rejects the persons claim 
and, if certified, the applicant can go directly to the CBL 
to receive his or her check and bypass the COS all together. 
 
¶5. (SBU) Hommeen added that the COS continues to receive 
money from the GOL in order to pay its staff salaries and 
overhead costs.  Hommeen noted that Berri was unaware of the 
large amounts of fraud being perpetrated and that Berri was 
reportedly very upset saying that such people should "burn in 
hell."  However, Hommeen said that the COS cannot be audited 
by any other GOL agency, given its official independent 
status.  Therefore, the COS can keep its books closed for the 
foreseeable future. 
 
HIZBALLAH LOSING SOME SUPPORT IN THE SOUTH, BUT NOT PUBLICLY 
--------------------------------------------- --------------- 
 
¶6. (SBU) Hommeen also noted that Hizballah,s "Jihad al-Bina" 
(JAB) company, which has completed a number of rebuilding 
projects in the area, has also encountered problems.  Hommeen 
said that in the immediate days after the war, Hizballah 
handed out cash donations to the displaced and injured. 
Hommeen added that the money that people originally received 
is dwindling and now, especially with winter setting in, 
people are beginning to question why reconstruction efforts 
are moving so slowly.  One example that Hommeen cited was 
that of Dahiyeh, where Hizballah SYG Hassan Nasrallah 
promised residents that the town would be re-built in less 
than six months.  According to Hommeen, "fifteen months 
 
BEIRUT 00001828  002 OF 002 
 
 
later, not much has been rebuilt."  Hommeen alleged that most 
of the money Hizballah received for reconstruction purposes 
was pocketed for other purposes, and this is why 
reconstruction in these areas has not met expectations. 
 
¶7. (SBU) Hommeen believes that people in the south want to 
speak out against Hizballah because of the lack of progress 
on reconstruction and development.  Since the war, Hommeen 
added that most residents realize that, due to the current 
political situation any such actions would make Hizballah 
appear weak and ineffective, something that most residents 
are afraid to do.  Hommeen said that southern residents are 
reluctant to provide Hizballah,s enemies any ammunition to 
use against their patron and that they also do not want to 
appear unsupportive or unappreciative of powerful Hizballah. 
 
ADDITIONAL RECONSTRUCTION PROJECTS IN THE SOUTH 
--------------------------------------------- -- 
 
¶8. (SBU) Hommeen noted that the French, Italians, and 
Russians are repairing bridges in the south (Note: Whereas 
other countries hired private contractors to do the 
rebuilding, the Russian Army actually did the building of a 
certain  bridge, which Hommeen reports as looking very shoddy 
and unsafe. End Note)  Hommeen added that the EU and UNDP are 
funding a number of agriculture and infrastructure projects 
in the south, along with USAID.  The Iranians have stuck to 
rebuilding roads as their reconstruction assistance 
contribution. 
 
¶9. (SBU) Hommeen reported that the Qataris and Emiratis had 
decided to adopt one or two villages to completely re-build. 
Hommeen said the Qataris had begun rebuilding the villages of 
Bint Jbeil and Khiam.  However, due to corruption and money 
laundering problems, the Qataris, who were at first opposed 
to giving money directly to the Siniora government, have 
decided that it would be more transparent to give the funds 
directly to the GOL and let it handle the reconstruction. 
Hommeen added, as a result of all these problems the Qataris 
faced, the Emiratis and Saudis have decided to give money in 
form of Paris III aid to the GOL. 
 
HOMMEEN'S WISH LIST FOR THE USG 
------------------------------- 
 
¶10. (SBU) Hommeen believes that the USG could help by 
directing assistance towards developing public buildings, 
primarily public libraries.  Hommeen argued that there are no 
public libraries anywhere in the south and that if the USG 
were to decide to invest in any new projects in the area, 
"libraries would benefit the public more than anything else 
because they provided citizens a place to meet, to conduct 
research, enhance levels of education and decrease illiteracy 
rates."  Hommeen also argued that medical waste and waste 
water treatment assistance is badly needed. 
 
COMMENT 
------- 
 
¶11. (SBU) Contacts of the embassy in the government 
contradicted Hommeen's claims, saying instead that the 
residents living in south Lebanon continue to have to go 
directly to the COS in order to receive compensation for 
their injuries.  It appears that, whether or not this is the 
case, a large amount of reconstruction aid is being funneled 
through the  COS to the benefit of Speaker Nabih Berri, an 
arch-enemy of the current government that the USG supports. 
End Comment. 
FELTMAN