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Media outlets and social media platforms have recently been buzzing with reports that subsidized flour is being used for other purposes rather than for the production of Lebanese bread. To further investigate the issue, This is Beirut reached out to the outgoing Minister of Economy, Amine Salam, and the President of the Union of Bakery Owners in Mount Lebanon, Antoine Seif.

Over the past few days, reports suggesting that hundreds of tons of subsidized flour are being used for the production of “manakish” and other pastries and cakes have emerged. It is essential to understand that the subsidized flour is exclusively intended for the production of Lebanese bread. To put things into perspective, the cost of a kilogram of non-subsidized flour is approximately LBP 60,000, while the state-subsidized flour costs just LBP 8,500 per kilogram. This was made partly possible thanks to a USD 150 million loan from the World Bank.

These reports further suggest a rise in the issuance of random licenses, and flour smuggling to Syria. The smuggling of subsidized goods, such as flour, is still going on across porous borders with Syria, which is experiencing severe shortages of goods exacerbated by international sanctions. Thus, the purchase of subsidized flour or bread from Lebanon and its subsequent resale across the border generate significant profit margins.

Some discussions also suggest that shuttered bakeries are obtaining their share of subsidized flour and reselling it on the black market to make pastries, manakish, kaak, etc.

Salam disputes fraud allegations

Contacted by This is Beirut, the outgoing Minister of Economy, Amine Salam, categorically denies these allegations. He states that “it is absolutely impossible to defraud with flour”. He believes that certain groups are circulating these rumors in order to disrupt and harm the industry. “An investigation has nevertheless been opened by the ministry,” he adds, before assuring that the matter of flour distribution is under stringent control: “For over a year, we have been controlling the quantities of flour distributed through a dedicated commission that tracks every kilogram of flour. Moreover, our operations are subject to the scrutiny of the World Bank.”

Questionable assertions

Bakeries echo similar sentiments. Antoine Seif, the President of the Union of Bakery Owners in Mount Lebanon, expressed his skepticism about these claims when speaking with This is Beirut. “It is, of course, possible that certain individuals might be violating the bread distribution regulations, but it is incumbent upon the security forces and the security committee responsible for bread distribution to remain vigilant.” He also questions the validity and accuracy of these reports, given the strict supervision exercised by the ministerial commission responsible for the distribution of wheat and flour, and the security committee established for this purpose. These bodies track the distribution of flour to bakeries based on the analysis of the bakery’s historical operations and its flour quota.

According to Seif, each bakery receiving subsidized flour for the production of Lebanese bread must submit a daily report to the Ministry of Economy, specifying the points of sale of the produced bread.

The ministry works by using a guideline to determine the number of bread packs (rabta) produced with a ton of flour.

Only 1% of bakery workers are Lebanese

In addressing the grievances of bakery workers, Seif says that the majority of them are “Syrian, with a mere 1% being Lebanese.” If the workers are unhappy and find their working conditions unsatisfactory, they are not bound to keep their jobs, he says, disputing the accuracy of the claims made by the President of the Bakery Workers’ Union in Beirut and Mount Lebanon, Chehadeh al-Masry, during his recent press conference. “If he believes that the workers are being exploited, he should consult the unions,” Seif suggests, asking, “If they are so displeased, why do they stay?”

In this context, it is worth noting that the president of the Union of Bakery Workers has been persistently advocating for wage revisions and the enforcement of labor laws.