Authorities say Lebanon's traders have withheld 74% of the country's essential subsidized goods from the public. It has meant that many mothers can't feed their children and that sick people often do not have access to life-saving drugs
The medication and formula seized in the raids has since been distributed to hospitals and others in need, the health ministry said.
The Central Bank claims it warned the Lebanese government about the abuse of subsidies since last June, but their claims have been met with widespread skepticism. The bank has been repeatedly accused of of aiding capital flight from Lebanon and helping the commercial elite shore up profits in the face of the country’s financial freefall — accusations bank officials reject.
In June, Lebanon’s Central Bank largely stopped supplying dollars to banks to extend lines of credit — an essential part of the subsidy mechanism — to importers of infant baby formula and medicine, saying it could no longer afford the drain on its reserves, and citing a significant discrepancy between its bloated import bill and shortages in the market.
Data from Euromonitor International, a strategic market research group, also showed a boost in baby formula imports in the first half of 2021. Lebanon’s pharmaceuticals importers syndicate chief Karim Gebara also acknowledged a growth in medicine imports, though he accused the central bank of attempting to exaggerate import growth in the medicine sector.
CNN interviews with aid workers, pharmacists and new mothers also found that while shortages of baby formula and other essential supplies intensified this summer, they began several months before the Central Bank effectively paused the subsidy program. “I don’t understand it,” Tharwat, who asked not to be fully identified, says. “I don’t understand how I can’t find medication.” As she says this, her sister breaks down in tears and scurries out of the room.
Bitar says newborn babies have died because of a lack of Magnesium Sulfate — also recently donated — which is given to mothers who suffer from hypertension.“This isn’t only a financial problem," she adds. "This is a problem of shortages. Suppliers are greedy, the Central Bank isn’t managing the crisis well, the previous government didn’t manage the crisis well. And patients are paying the price.
“We feel trapped here. As soon as Maria’s immunity improves, I’m going to take her out,” says Abou Saab.
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