US sanctioning Lebanese businessmen, lawmaker over alleged corruption

The United States sanctioned three Lebanese individuals over corruption allegations on Thursday.

The Treasury Department issued the sanctions for businessmen Jihad al-Arab and Dany Khoury, along with Jamil Sayyed, a member of Lebanon’s Parliament.

The department alleges the businessmen used their connections to top Lebanese government officials to profit off government contracts, but did not fulfill their obligations under those contracts.

The U.S. alleges the lawmaker has used his position to “skirt” the domestic banking system and transfer money overseas.

“Jihad al-Arab, Dany Khoury, and Jamil Sayyed have each personally profited from the pervasive corruption and cronyism in Lebanon, enriching themselves at the expense of the Lebanese people and state institutions,” the Treasury Department stated. 

The U.S. has given Lebanon $400 million in humanitarian assistance in 2021, along with $200 million in security assistance.

Lebanon regularly ranks among the most corrupt countries in the world, and groups like Transparency International have called for increased oversight of global funding to help the country rebuild from a massive explosion in Beirut last year. 

Andrea Gacki, director of the Treasure Department’s Office of Foreign Assets Control, called out Lenanon’s broader corruption in Thursday’s press release.  

“The Lebanese people deserve an end to the endemic corruption perpetuated by businessmen and politicians who have driven their country into an unprecedented crisis,” Gacki said. 

“Now is the time to implement necessary economic reforms and put an end to the corrupt practices eroding Lebanon’s foundations. Treasury will not hesitate to use its tools to address impunity in Lebanon,” she added.