A Corrupt Deal Between Hezbollah and France Exposed by Lebanon's Postal Services

The French interest in Lebanon is not a spur-of-the-moment decision but the result of long-standing relations between the two countries, which fluctuate based on the French rulers' whims and interests as the stronger party capable of determining "the direction" of the relationship.

A recent development in this relationship is Paris' persistent attempts to control various commercial sectors in Lebanon.

On September 15, 2023, the Audit Bureau canceled the postal services and products contract in Lebanon. This contract had effectively gained control of the delivery sector and its profits to an alliance of companies, namely Merit-Colis Prive France.

This alliance is owned by Rodolphe Saade, a French billionaire with Lebanese heritage and strong connections to Emmanuel Macron.

This came after the Audit Bureau's report stated that "the bidding was based on a single criterion."

This attempt marked the third of its kind by the Minister of Telecommunications to grant control of the sector to Saade, who has gained significant local prominence in recent years. Leaks and media reports suggest that Saade is working to execute a French agenda aimed at controlling several economic and service sectors.

 

A Lucrative Sector

For approximately 25 years, LebanPost, owned by Prime Minister Najib Mikati, had maintained control over this lucrative sector by exploiting legal loopholes and extensions.

However, the Ministry of Telecommunications decided this time to abide by the law and numerous judicial recommendations.

Leaks and media reports indicate that this was not driven by a genuine dedication to upholding the law or combating corruption but rather to hand control of the sector over to the French.

This was reiterated by the Audit Bureau's report, which found that the process was based on a single criterion. The report aligned with the General Purchasing Authority's report, which is legally responsible for overseeing government tenders and auctions.

The sole bidder in question is an alliance of two companies: Merit Invest (Lebanese) and Colis Prive France (French). Both are owned by the French company CMA CGM, chaired by the French–Lebanese businessman Rodolphe Saade.

The first bidding took place in February 2023, and no other entities submitted bids. The second bidding in March 2023 saw the sole bidder winning a 9-year postal sector commitment.

However, the General Purchasing Authority annulled the commitment process after documenting fundamental violations in accepting an offer that does not meet the requirements set by the administration in the tender document and harms public funds.

The process was repeated in the third bidding in July 2023 after the Ministry of Telecommunications amended the tender document to align with the sole bidder.

On August 3, 2023, Lebanese Minister of Telecommunications Johnny Corm submitted a request to the Lebanese government for authorization to sign the bidding project and its documents.

Journalist Nada Ayoub highlighted in an article in the Lebanese newspaper Al-Akhbar on August 3, 2023, that the Minister of Telecommunications was requesting powers that he already inherently possesses under the law.

She pointed out that "what raises eyebrows is that the bidding has not yet received prior approval from the Audit Bureau, which is legally binding under the law."

Ayoub suggests that Corm is attempting to exert pressure on the Audit Bureau before the release of its report. This stems from appeals filed by other companies vying for the bid in front of the Lebanese State Council.

These companies include Ghana Post, C Com Holding, and Trust Trading, which is allied with DHL, with verbal opposition from Egypt Post.

In the same context, Journalist Roula Ibrahim stated in a report published by Al-Akhbar on September 15, 2023, that "the report primarily relies on the fundamental report issued by the General Purchasing Authority regarding this bidding." However, it was more daring in describing collusion between the Ministry of Telecommunications and the company that won the bid.

The Audit Bureau did not settle for invalidating the bidding's results but also annulled the tender document. It is no longer possible to conduct the tender without amendments that nullify the provisions that secured the victory of this sole bidder and allowed the exclusion of its competitors.

According to Ibrahim, "the Audit Bureau unmistakably indicates that the Minister of Telecommunications colluded with the company and other employees in the ministry in violation of the law to enable the company to win the bid at the expense of the state's interest."

This is in addition to another violation, which is the short time period between announcing the tender and its implementation, preventing some companies from preparing and submitting their bids.

 

The French Emperor

Rodolphe Saade is a French businessman who owns the CMA CGM shipping empire, which he inherited from his Lebanese father of Syrian descent. According to a report by the New Arab newspaper, prepared by Journalist Mustafa Qammas and published on January 8, 2023, Saade "added around $10.9 billion to his wealth in 2022, bringing his estimated fortune to approximately $16.9 billion."

This placed him at the 88th position on the list of the world's richest billionaires, according to Bloomberg's billionaires index.

The report also indicates that CMA CGM ranks third globally in maritime transport and containers after the Italian company MSC and the Danish company Maersk.

Despite facing a major financial crisis, the company managed to overcome it in the past three years, achieving significant leaps due to various factors. However, the decisive factor in the company's recovery, according to the report, was "the €1.05 billion loan obtained from the French government in the early stages of the COVID-19 pandemic. After this government support, the company's situation changed within a few months."

The report reveals that "between 2020 and 2022, Saade became the third-wealthiest person in France."

Saade is considered close to the Elysee Palace and is part of the inner circle of business figures surrounding French President Emmanuel Macron, serving as one of his economic arms. This explains his numerous visits to Lebanon, especially since the Beirut port explosion in August 2020 and the subsequent French eagerness to control various economic sectors in Lebanon.

Commenting on the scene, journalist Ahmad al-Ayoubi points out the alignment between Hezbollah, which dominates the decisions of the Lebanese state, and the French administration.

The former facilitates French companies' access to Lebanese sectors, while the latter facilitates Hezbollah's consolidation of control over the state and the installation of a non-opposing president.

"This explains France's insistence on supporting the former minister Suleiman Frangieh's candidacy for the presidency so far, as he is a candidate of Hezbollah." This is despite significant political and Christian opposition and the inability of Elysee circles and Macron's advisors to secure the two-thirds quorum for his election.

He also explains the determination of Minister of Telecommunications Johnny Corm, who represents Frangieh's faction in the government, to grant the postal sector to a French company.

Hezbollah facilitated France's acquisition of the exploration rights for gas in Lebanese waters through the French company Total and subsequently facilitated the demarcation of maritime borders. It also facilitated, through one of its representatives in the government, Minister of Public Works Ali Hamieh, who holds French citizenship, the awarding of the contract to manage the container terminal at the Port of Beirut, as well as the Port of Tripoli, as he oversees the ports.

 

Swallowing Lebanon

On April 5, 2023, the electronic newspaper Al-Modon published an article by the economics journalist Azza Hajj Hassan titled CMA-CGM Empire Swallows Lebanon: From Ports to Post to Agriculture to Nuts.

Hajj Hassan states that, "Since the beginning of the economic crisis in Lebanon in 2019, we have seen this empire moving between various sectors, concluding contracts and agreements to invest in various fields."

These sectors range "from port management and maritime transport to postal services, agricultural packaging, exports, digital services, nut production, and more. Later, we may witness 'CMA CGM' entering the airport, media, and possibly sports sectors."

Hajj Hassan points out that the CEO of this company, Rodolphe Saade, "has close relationships with the Lebanese Prime Minister Najib Mikati, which have resulted in contracts and partnerships in the postal and Tripoli port sectors, with efforts underway to translate them into other sectors."

The report also highlights the close relationship between Saade and French President Emmanuel Macron, as well as Saade's accompanying Macron on his visits to Lebanon.

It stops at a crucial point, which is the company's exploitation of the crisis in Lebanon to acquire companies and economic and service sectors at "bargain prices."

The company itself launched a special program in 2022 to offer scholarships to Lebanese students, distributing 240 scholarships to the American University and Saint Joseph University over a period of 3 years.

In addition to these scholarships, 200 scholarships were granted over 10 years to Lebanese students wishing to continue their studies at HEC Paris.

Hajj Hassan sheds light on the university specializations that receive the most attention and scholarships from the company, focusing mainly on "management, sciences, economics, and engineering, with students selected according to precise criteria."

This highlights that the CMA CGM Group is establishing its human resources and investing its capabilities to support its expansion in Lebanon.

Through one of its subsidiaries, the company established a logistics center specializing in developing agricultural production and improving its quality to meet European market standards.

In 2021, the company acquired shares in the leading Lebanese company in the nuts and coffee industry, al-Rifai, which is one of Lebanon's prominent brands founded in 1948. It took advantage of the suffocating financial crisis that al-Rifai was facing to acquire it at a low price.

Not only that, but the CMA CGM Group established a digital services center in Beirut in 2019, aiming to meet the company's needs and develop digital projects for the group. According to Hajj Hassan, the center succeeded in providing 800 jobs in two years, with around 1,000 employees in Lebanon.

The report also indicates that the CMA CGM Group is seeking to purchase shares from the official Lebanese Middle East Airlines (MEA). It is attempting to invest in the expansion of Beirut's Rafic Hariri International Airport, the country's sole airport.

It is trying to acquire the French newspaper L'Orient-Le Jour, the only French-language newspaper in Lebanon, which is an important and favored media outlet among a wide section of the Lebanese elite, especially the Christian community.