U.S. sanctions 2 Lebanese businessmen, a lawmaker for corruption

Oct. 28 (UPI) -- The Biden administration has blacklisted two Lebanese wealthy businessmen and a member of parliament on accusations their corrupt conduct is contributing to the breakdown of the rule of law in the Middle Eastern country.

The Treasury sanctioned businessmen Jihad al-Arab and Dany Khoury and sitting member of parliament Jamil Sayyed on Thursday for profiting off the "pervasive corruption and cronyism" in the country at the expense of Lebanon and its people.

"The Lebanese people deserve an end to the endemic corruption perpetuated by businessmen and politicians who have driven their country into a unprecedented crisis," Director of the Office of Foreign Assets Control Andrea Gacki said in a statement. "Now is the time to implement necessary economic reforms and put an end to the corrupt practices eroding Lebanon's foundations."

The federal department said corruption is undermining the Lebanese state while preventing it from holding those responsible to account. While its citizens struggle to receive daily necessities, the country's political class who deal in corruption and cronyism benefit, it said.

Al-Arab is accused of using his political connections to secure lucrative government contracts in exchange for kickbacks, including two worth about $200 million for brokering a meeting between two top Lebanese officials ahead of the presidential election in 2014. He is also accused of securing a $288 million deal in 2016 to build a landfill.

Khoury is accused of using his relationship with U.S. designated Gibran Bassil to secure large public contracts including one worth $142 million in 2016 to operate a landfill while dumping toxic waste and garbage into the Mediterranean Sea.

Sayyed is accused of skirting domestic banking policies and regulations to transfer $120 million to overseas investments with the aid of senior government officials. The Treasury added that he also demanded officials shoot and kill protesters demonstrating outside his home in demand of his resignation in 2019.

"The United States is levying sanctions on these individuals in solidarity with the Lebanese people, who have long demanded accountability, transparency and an end to endemic corruption," Secretary of State Antony Blinken said in a statement. "We are committed to working with the Lebanese government and our international partners toward a better, brighter future for Lebanon."