Executive Summary

Heeding the call of Lebanese citizens for transparency and accountability, which was unequivocally heard on 17 October, expressing disgruntlement with the political elite and widespread corruption, clientelism, and abuse of power, the Gherbal Initiative embarked on an effort to make a humble contribution to the resounding demand for deep and comprehensive reforms.

We decided to expand on our previous work, where we had stress-tested ministries and central public entities to assess their compliance with the 2017 Law on the Right to Access Information (hereinafter “Law”); and based on which we had collected and published data and numbers on public finances. The new frontier was the local level.

Municipalities and federations of municipalities represent an important avenue of interaction between State and citizen, and they are relatively neglected in the national discourse on reform and development despite the role they play in the daily lives of people. Among the 1,031 municipalities in Lebanon, we selected the forty-seven that are subject to the provisions of the Public Accounting Law and/or the supervision of the Court of Audit, in addition to all the 56 existing federations of municipalities.

In the framework of an agreement with the United Nations Development Programme (UNDP), we formed and trained a team to visit the regions and raise awareness on the Law, while working to solicit, compile and analyze financial data in accordance with it. Between December 2019 and January 2020, we requested, through registered mail, from each of the selected municipalities and federations, a copy of its annual financial statement for the years 2014, 2015, 2016, 2017, and 2018, showing the chapters and functions, the revenues generated, and the actual expenditures. Our team also followed up on our requests of information in different ways including phone calls and physical site visits as detailed in this report.

Twenty-four out of those forty-seven municipalities responded in writing to our requests. Only seventeen, however, provided all the requested information, with four providing incomplete information, including the Municipality of Beirut, while the remaining three explicitly refused in writing for various reasons, listed in this report. In addition, we received verbal refusals from six municipalities, with two other municipalities categorically refusing to even receive our request. This left us with fifteen municipalities, which did not acknowledge our requests or respond to it, despite repeated follow-ups from our team, and outreach efforts that continued well after the expiration of the legal deadline (set by the Law at fifteen days, an extendable to thirty days under specific circumstances).

As for federations of municipalities, we received twenty-seven written responses out of the fifty-six requested. Out of those, twenty-three provided all the requested information, with only two federations providing incomplete information and another two refusing, in writing, to provide any information. In addition, there were eleven federations that provided verbal refusals, and only one that refused to receive our request, with the remaining seventeen failing to respond despite our repeated attempts and follow-ups, which also persisted till after the expiration of the legal deadline.

Overall, those findings showcase that the rate of compliance with the relevant elements of the 2017 law on the right of access to information among municipalities and federations thereof is equivalent to nearly 50%, broken into 51% at the level of the selected municipalities and 48% at the level of federations. Digging a bit deeper into the reactions of unresponsive ones, we find that only 20% provided justifications and that those justification are varied, and by and large, invalid.

Some alleged that the law is not yet in force, pending the adoption of implementation decrees, whereas it has been established by the Ministry of Justice and the State Council that it is, as demonstrated in our earlier reports and reiterated in this one. Others invoked the excuse that the requested information cannot be made available to the public, even though the Committee of Legislation and Consultations in the Ministry of Justice had asserted the opposite in consultative opinion no. 890/2018. Another group of excuses revolved around the notion that the Gherbal Initiative lacks legal standing and/or interest, or what is known as sifa wa maslaha, to obtain the information. This contravened the first article of the Law, which clearly states that any natural or legal person has the right of access to information, independent of whether legal standing exists or not; and it is also in contravention to Article 55 of the Legislative Decree no. 118 (Municipalities Law), which explicitly refers to the obligation of municipalities and federations to publicly post decisions of a general character, including budgets and closure of accounts, at the door of their respective domiciles.

The excuses outlined above were anticipated by the Gherbal Initiative, based on its earlier experience with ministries and central entities, so all precautions were made to ensure that the solicited municipalities and federations were informed of the counter-arguments and provided with the legal documents substantiating them, but to no avail!

Other more novel excuses, however, were provided this time. They include the argument that the requested information is with the Ministry of Interior and Municipalities and/or the Court of Audit. It is needless to point out the absurdity of this response given that requested information is also available with the municipalities and the federations themselves. After all, they are the ones, which prepare them, and send them to the central authorities mentioned. Other invalid excuses for refusals included the assertion that our request must come through the District Commissioner (Qa’em Maqam) and/or the Governor and/or the Ministry of Interior and Municipalities – a matter which we also conclude to be invalid.

Notwithstanding those challenges, our team proceeded to analyze the forty complete responses and the six incomplete responses received. We extracted the data on the closure of accounts sections and converted them to visual graphs to show the sum of revenues and the transferred cash from earlier years, compared to the total expenses paid.

Revenues of municipalities are split into four chapters (collected directly from taxpayers, collected by the state or one of its entities and then paid directly to the municipality; collected by the state on behalf of all municipalities, also known as revenues from the independent municipal fund; and other revenues including cash transferred from previous years).

Revenues of federations are split into four chapters too but under different categorization (regular revenues from member municipal contributions; irregular revenues; independent municipal fund revenues; and diversified returns, which include transferred cash from previous years).

On the other hand, expenditures are categorized in one of two ways as illustrated in the below table.

1-Fixed physical assets that include property, equipment, construction, maintenance, etc. 1- Administrative expenses (salaries, wages, bonuses, clothes, rentals, telecommunications, and other),
2- Consumables that include administrative supplies, medicines, laboratory materials, pesticides, agricultural materials, water, electricity, telecommunications, etc. 2- Expenses for equipment, maintenance and sanitation (equipment, maintenance, furniture, fuel, transportation, electricity and water, and other),
3- Allocations, salaries, and wages, 3- Expenses for construction projects (buildings, lighting, sewage, sidewalks, gardens, playgrounds and swimming pools, buildings, real estate, and other),
4- Transfers, which include grants, contributions, and end-of-service compensation, 4- Services and aid,
Consumer services, including rents, mail, insurance, advertisements, publications, public relations, spending on events and holidays, rental of machinery, etc., 5- Miscellaneous expenses (receptions, celebrations, invitations, insurance, loans),
6 - Miscellaneous expenses that include judicial rulings, transfer and transportation, the costs of delegations and conferences, research, and others, 6- Reserve money.
And exceptional financial expenses such as debt and reserves.

In a clear demonstration of how the utilization of the 2017 Law on the right of access to information can provide valuable information that helps in understanding public finances and contributes to transparency and accountability in government, albeit at the local level this time, our team was able to extract important findings. This report presents in detail the data extracted and the analyses made.

With regards to revenues, the report shows, among other things, that the government did not dispense to municipalities and federations funds from the revenues of the independent municipal fund in 2017. In 2015, however, the funds for these revenues (derived from revenues from mobile phone line fees) were distributed for 2013 and 2014, as shown below. This explains the increase in revenues recorded in 2016. As for other sources of revenue, it has mostly been found to be in the form of direct taxation.

Most of the municipalities maintained relatively stable levels of collection, with a few exceptions where a fluctuation in revenues throughout the years has been observed. The most important items in municipal revenues appear to be fees for rental value (for housing and non-housing), maintenance of sewers and sidewalks, and issuing building permits. Details are provided for each municipality in its corresponding section.

With regards to expenditures, the report shows that most municipalities and federations witnessed an increase in spending on salaries, wages and allocations in 2018, ranging between 21% and 51% compared to the previous year. This was a result of the implementation of the Salary Scale Law, except for a few municipalities such as Zgharta-Ehden, and el-Naameh Haret el-Naameh.

The report also shows that many municipalities dedicate most of their resources to salaries, wages and allocations (discounting the items related to end-of-service compensation and the daily wages of workers), which is similar to what other public administrations do in Lebanon, as shown in our previous reports. Eleven out of the eighteen municipalities from which we have received closure of accounts spent more than a one-third of their expenses on this chapter, reaching in some cases around 50% (Jbeil and Shweir-Ain Sindyaneh), and in the case of Tripoli to 71% in 2018. On the other hand, there are municipalities that spend less than 25% on such items, including Abbassieh, Antelias-Naccache, Baakline, Chiyah, and Jdeidet Marjeyoun.

Moreover, the report reveals that the municipalities of Sidon, Tyre, Tripoli and Burj al-Barajneh are among the municipalities with the lowest percentage of spending on fixed physical assets and construction projects (containing items of expropriation; equipment; road, buildings, sidewalks, stadiums and parks construction; and their maintenance), not exceeding one-quarter of their expenditures.

In addition, most federations of municipalities spend the largest sum of their funds on construction projects, the most important of which is the construction of public roads, sidewalks and canals, while many federations, especially in the Mount Lebanon Governorate, have doubled their spending on items related to public hygiene between the years 2015 and 2016. Compared to each other, federations seem to spend less than municipalities on administrative expenses, as some presidents of federations do not receive any allocations, and most of them generally do not spend large amounts on the pensions and salaries of employees and workers.

Finally, 50% of the municipalities have spent L.L. billions on contributions to non-profits and private entities. The spending on this chapter has ranged from as low as 1% of total municipalities’ spending with few L.L. millions (Municipalities of Sawfar, Bikfaya -Mhaydse) to exceed L.L. 1 billion (Municipalities of Choueifat and Sin el-Fil). As for the federations of municipalities, the spending on this chapter ranged from as low as 0.2% of total spending (Federation of Zgharta District Municipalities in 2015) and 57% of total spending (both Federation of Jabal Aamel Municipalities and Federation of Bint Jbeil District Municipalities in 2018).

The report and the challenging work behind it are part and parcel of a broader national effort to promote the implementation of the access to information law and raise public awareness of its added value, while utilizing the information collected under it to increase the level of transparency in Lebanon and encourage accountability. Findings put forward in terms of compliance with the law itself, or in terms of revenue and expenditure trends are not necessarily conclusive evidence of excellence or failure. We hope, nonetheless, that they are a step forward in the quest of Lebanese citizens for good governance. While we commit to continue our own efforts, we also hope that the report inspires additional action and concerted efforts to sustain and further pursue the drive for deep and comprehensive reforms in Lebanon.

The President of the Republic of Lebanon, based on the Lebanese Constitutional law specifically Article 58, and since the Council of Ministers referred to Parliament reference made to decree No. 14315 dated 04/11/1963 the expedited draft law aimed at defining the principles of public accounting, since it has been more than 40 days since its referral to Parliament without a decision being made, and upon the proposal of the Minister of Finance, and after the approval of the Council of Ministers at its meeting held on December 30, 1963, the following is drawn:

The expedited draft law referred to the Lebanese Parliament by Decree No. 14315 dated 04/11/1963

Part One: General Provisions

This legislative decree defines the principles for preparing the budget, approving it, executing it, closing its accounts, assets for keeping public funds accounts, and the money deposited in the treasury.

Public funds are state funds, municipalities, and public institutions of the state or municipalities.

The budget is a legislative instrument in which the state's expenditures and annual imports are estimated, and accordingly, a legislative instrument in which national revenues and expenditures are estimated for the upcoming year, and by which the levy of taxes and spending is allowed.

The budget consists of the budget law, the tables on the appropriations and annexes.

The Budget Law is the text that includes the approval by the legislature of the draft budget. This law includes basic provisions requiring the estimation of expenditures and revenues, the collection and collection authorization, and special provisions limited to those directly related to budget implementation.

The state budget consists of the general budget, supplementary budgets, and exceptional budgets. Supplementary budgets and exceptional budgets shall be updated by special laws, and the provisions of this law shall be applied to them, unless their provisions contain contradictory articles.

The budget is set for one fiscal year that begins on January 1 , and ends on December 31.

Revenues and expenditures are recorded in the accounts of the budget for the year in which they were actually received or paid.

Technical and Placement errors can be corrected by a decision of the Minister of Finance issued on the basis of the request of the competent department until March 15 of the following year.

The budget is divided into two parts:

  1. Expenditures section, which includes the appropriations available to pay for these expenditures.
  2. Revenues section, which includes expected revenues to cover these expenditures.

Appropriations are of two types:

  • Basic that were made under the budget law.
  • Additional, which are added basic appropriations after the publication of the budget

Additional expenditures are of two types:
Complementary, which is to meet a deficiency in one particular item Exceptional, which is made to meet an expense which no appropriations were originally made for in the budget

Appropriations are only opened within the scope of the budgets mentioned in Article 6. However, it is permissible, exceptionally, to open a provision in the budget prior to its approval, provided that they are written within it.

Part Two: Preparing the General Budget

Each minister shall, before the end of May of that year, prepare a project with the expenses of the relevant ministry for the following year, and send it to the Minister of Finance with the documents, statistics and clarifications necessary to justify each of the required appropriations, according to the principles determined by the Minister of Finance.

The Minister of Finance estimates the revenues based on the expectations of the relevant ministry and the estimates of the ministers who make or collect some revenues on behalf of the Minister.

Revenues for the following year are based on the following two components:
  • A- Collections of the last year in which the draft closure of accounts was completed.
  • B- Collections of the previous months of the current year.
The Minister of Finance may amend the estimate on the basis of conditions the minister approves, provided they are justified by the latter.

The Minister of Finance collects estimates of expenditures, meets them with estimates of revenues, and establishes the draft budget after securing the balance between the two components. If the required appropriations exceed the estimated revenues, the Minister of Finance should secure the balance by proposing the following measures as deemed necessary:
  • A- Reducing expenses.
  • B - Covering the difference with reserve money, if possible.
  • C- Finding new resources

The Minister of Finance submits the draft budget to the Council of Ministers before September 1, accompanied by a report analyzing the required appropriations, and the important differences between the draft numbers and the budget numbers for the current year.

The Council of Ministers approves the draft budget in its final form, and deposits it to the legislature within the deadline specified in the constitution. Before November 1, the Minister of Finance shall submit to Parliament a detailed report on the economic and financial situation in the country and on the basis of the principles adopted by the government in the draft budget.

No increase in the draft budget, or additional appropriation projects, may be made during the discussion thereof in the relevant committees and in the Lebanese Parliament, except after acquiring the written opinion of the Ministry of Finance and the approval of the Council of Ministers.


Municipality Year/Law/Decree #
Municipality of Nabatieh
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municiplity of Baalbek
  • Court of audit: 11043 - Year: 1956
Municipality of Ghobeiry
  • Public Accounting Law: 13648 - Year: 1998
  • Court of Audit: 12129 - Year: 1956
Municipality of Borj el-Barajneh
  • Public Accounting Law: 1429 - Year: 1998
  • Court of Audit: 1429 - Year: 1998
Municipality of Zahle, Maalaka and Taanayel
  • Public Accounting Law: 2838 - Year: 1959
  • Court of Audit: 82 - Year: 1983
Municipality of Bourj Hammoud
  • Public Accounting Law: 2838 - Year: 1959
  • Court of Audit: 82 - Year: 1983
Municipality of Sawfar
  • Court of Audit: 9092 - Year: 1952
Municipality of Saida/Sidon
  • Public Accounting Law: 2838 - Year: 1959
  • Court of Audit: 82 - Year: 1983
Municipality of Tabarja-Kfaryassine
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Jdeideh, Sad el-Bauchrieh
  • Public Accounting Law: 7322 - Year: 1967
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 11043 - Year: 1956
Municipality of Beirut
  • Court of Audit: 82 - Year: 1983
Municipality of Furn El Chebbak
  • Public Accounting Law: 4092 - Year: 1960
Municipality of Antelias - Naccache
  • Public Accounting Law: 13651 - Year: 1998
  • Court of Audit: 10340 - Year: 1975
Municipality of Aley
  • Public Accounting Law: 2383 - Year: 1959
Municipality of Broummana
  • Public Accounting Law: 13649 - Year: 1998
Municipality of Bikfaya-Mhaydseh
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Ghazieh
  • Public Accounting Law: 2344 - Year: 1985
  • Court of Audit: 2344 - Year: 1985
Municipality of Baakline
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Chekka
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Fanar
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Jdeidet Marjeyoun
  • Public Accounting Law: 5651 - Year: 2019
Municipality of Mazraat Yachouh
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Hadat-Sibnay-Haret Botm
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Choueifat
  • Public Accounting Law: 12702 - Year: 1998
  • Court of Audit: 12130 - Year: 1956
Municipality of Souq el-Gharb
  • Court of Audit: 12130 - Year: 1956
Municipality of Ajaltoun
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Chiyah
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 12129 - Year: 1256
Municipality of Beit Mery
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Batroun
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Dekwaneh, Deir Mar Roukoz, and Dahr el-Hossein
  • Public Accounting Law: 602 - Year: 1983
  • Court of Audit: 2126 - Year: 1971
Municipality of Baabdat
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Jbeil/Byblos
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Sin el-Fil
  • Public Accounting Law: 13650 - Year: 1998
  • Court of Audit: 2126 - Year: 1971
Municipality of Cornet Chehwen, Ain Aar, Beit el-Kikko and Hbous
  • Public Accounting Law: 2286 - Year: 2000
Municipality of Bhamdoun al-Mahatta
  • Public Accounting Law: 2838 - Year: 1959
Municipality of el-Naameh Haret el-Naameh
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of El-Mina
  • Public Accounting Law: 2838 - Year: 1959
  • Court of Audit: 82 - Year: 1983
Municipality of Zalka-Amaret Chalhoub
  • Public Accounting Law: 985 - Year: 1999
  • Court of Audit: 14466 - Year: 1970
Municipality of Jezzine- Ain Majdaline
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Bhamdoun el-Balda
  • Court of Audit: 9092 - Year: 1952
Municipality of Shweir-Ain Sindyaneh
  • Court of Audit: 9092 - Year: 1952
Municiplaity of Sour/Tyre
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 11043 - Year: 1956
Municipality of Abbassieh
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Tripoli
  • Public Accounting Law: 2838 - Year: 1959
  • Court of Audit: 82 - Year: 1983
Municipality of Bkassine
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Beit Chabab-Chawiye and Koneitra
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 1429 - Year: 1991
Municipality of Zgharta-Ehden
  • Public Accounting Law: 1429 - Year: 1991
  • Court of Audit: 11043 - Year: 1956

Chapter Seven - Federations of Municipalities

Part One: Definition/Formation/Mandate

The Federation of Municipalities is made up of a number of municipalities, it has a legal personality, and it is financially and administratively independent within the scope of this law.

  1. The Federation of Municipalities is formed by a decree issued by the Council of Ministers upon the suggestion of the Minister of Interior, based on:
    • Either by a personal initiative;
    • Or upon the request of the municipalities
  2. Other municipalities can be later included by decree upon the suggestion of the Minister of Interior based on either a personal initiative, or upon the request of the municipalities.

  3. The Federation of Municipalities shall be dissolved with the same assets approved for its establishment. In a decree of dissolution, and while retaining the rights of others, the conditions under which the Federation of Municipalities is liquidated should be specified.

The name of the Federation and its location shall be specified in the decree establishing the Federation of Municipalities.

The mandate of the Federation ends with the expiration of the term of the municipal council that comprises it.

Part Two: Federation Body

The federation consists of a reporting authority called the Federation Council and an executive authority vested in the president of the Federation Council.

The Federation Council is composed of the presidents of Federation's member municipalities. The Municipal Council, upon the proposal of the President, may be represented by one of its members throughout the term of the Federation. In the event that the position of the Federation member becomes permanently vacant due to death, resignation, or removal from the membership of the Municipal Council, it is replaced by a member delegated by the Municipal Council.

The Federation Council meets within a period of two weeks from its formation, based on the invitation of the mayor or governor, to elect its president and vice president.

The head of the executive authority is assisted in managing the affairs of the Federation by a team that is headed by a director and consists of staff responsible for public health, engineering, administration of finance and municipal police. The Federation Council shall appoint the employees of the Federation Council in accordance with the provisions of establishing regulations and staffing for the Federation employees according to procedures and regulations in effect.

The engineering body for the member municipalities in the Federation handles the following:

  • Reviews applications for building permits, develops technical statements, and submits the complete file to the concerned municipality’s mayor for a decision

  • Prepares terms of conditions for supplies, works, and services

  • Prepares the required technical studies and consultations

  • Prepares lay out plans

  • Collects expropriation regulations and detailed data for transmission to the relevant evaluation committees

  • Reviews and provides feedback on housing licenses

  • Health monitoring

  • Prepares reports to the concerned mayor related to building violations, health violations, and all other violations related to the authority of this body, which falls within the municipality’s scope, and submits them, through the president of the Federation Council, to the concerned president of municipality

  • The engineering and health apparatus also handles all other joint technical matters requested by the president of the Federation Council.

The administrative and financial apparatus assume the following responsibilities:

  • Administrative and financial affairs for small municipalities whose budget does not permit the use of employees to facilitate this work
  • Assist member municipal bodies to improve their administrative and financial work. It may be entrusted to a collector in the Federation to support the member municipalities in collecting fees from taxpayers
  • Administrative and financial affairs of the Federation

The Police Service of the Federation handles the following matters:

  • Educates citizens to adhere to the provisions of the applicable laws and regulations
  • Prepares reports of violations within the Federation's municipalities and submits them by the President of the Federation Council to the concerned mayor.
  • Conducts preliminary investigations into witnessed crimes and crimes affecting public safety until the arrival of the judicial police
  • Secures the tasks of the municipal police officers in the municipalities whose budget does not allow the appointment of their own police personnel
  • The Federation police officers are assigned these tasks according to a decision issued by the President of the Federation Council at the request of the concerned mayor and they work under the authority of the mayor assigned to them

The member municipalities have the right to temporarily separate all or some of its police personnel to work within the scope of another municipality in the Federation, in addition to a number of other municipal police officers to work within its scope.

The dismissal and reassignment takes place by a decision of the mayor after the approval of the President of the Federation Council. Police officers continue to receive their salaries from the municipalities assigned to them and receive transport and transportation compensation from the relevant municipality that dismissed them.

Part Three: Prerogative of the Federation Council

The Federation Council deliberates and decides on the following matters:

  • Public Projects of common interest to all or some of the municipalities or that includes the scope of the member municipalities or that include the scope of more than one union, including current or future projects, such as roads, sewage, waste, slaughterhouses, firefighting, transportation, cooperatives, popular markets, etc.
  • Planning, acquisitions, conditions, and deciding on expropriation necessary for the implementation of projects
  • Coordinating between member municipalities and settlement of differences arising between them
  • Approval of the Federation's budget
  • Acknowledgment of the closure of accounts
  • Approval of the union's staffing and regulations
  • Management of the commons that fall within the federation’s municipalities, and whose administration does not belong to a specific municipality and which have special communal committees
  • Approval of the development plan within the scope of the federation and its powers
  • Regulating the beneficiaries of a construction project whose study has been completed, contributing to the costs of this project in the event that the majority of at least three-quarters of its beneficiaries agree
  • Loans of all kinds to achieve specific projects that have been completed
  • Assignment of some of the municipal returns, current and upcoming, to the loan provider or to the state in the person of the Minister of Finance in exchange for the loan guarantee and the inclusion of installments that are due annually in successive budgets throughout the term of this loan.

In the event that the Federation Council disagrees on one of the joint projects, or if one of the councils refuses to discuss the matter, the issue is submitted to the Minister of the Interior, who settles the dispute according to a reasoned decision that has the status of legal obligation for the concerned federations.

All decisions taken by the Federation Council within the scope of its powers are legally binding for member municipalities. If one of the member municipalities refuses to implement the decisions of the Federation Council, the governor may either pardon or, at the request of the president of the Federation Council, direct to the competent municipality a written order that it must be implemented within a period of ten days, otherwise the president replaces the municipal council or the mayor through a decision that guarantees the implementation of the Federation Council decision. The decision of the District Commissioner or the Governor is recorded in the special records in the municipality concerned.

The Federation Council shall adopt the same principles and rules approved for the functioning of municipal councils as stipulated in this law.

Part Four: Presidency of the Federation Council

The Executive Authority shall be assumed by the President of the Federation Council, and he shall have the following powers, without any limitations:

  • Inviting the Federation Council and setting its agenda
  • Chairing and managing the Federation Council sessions
  • Setting the budget, closure of accounts, and annual report
  • Overseeing the Federation's finances and controlling its imports
  • Sign expenditures and orders of spending along the budget lines
  • The appointment of employees within the provisions of the system and certified vacancies
  • Managing the council affairs, the President is the highest authority among Federation employees
  • Implementing the decisions of the Federation Council
  • Representing the Federation at the judiciary and other bodies.

The president and vice president of the Federation Council have the right to receive compensation from the Federation’s budget for representation and selection, as determined by the Council and that is proportional to the importance of the effort exerted by each of them in managing the affairs of the Federation.

The vice president shall perform the powers of the president in the event of the latter's absence or suspension from work or in the event of the vacancy of the office of the president for any reason.

Part Five: Finance of the Federation

The Federation's financing consists of:

  • Ten percent of the actual revenues of the member municipalities, as defined in the closure of accounts for the previous year, and the revenues that are not included in the account of deposits, cash, loans and aid.
  • An additional percentage of the budget of the member municipalities that benefit from a collective project that holds mutual benefit. This percentage is determined by the Council of the Federation with the consent of the Ministry of Interior and Municipalities.
  • Grants and loans, and the entire proceeds of the commons that fall within the jurisdiction of the Federation Council.
  • The allocations to the federation from the independent municipal fund.
  • The state’s contribution to the federation’s budget, provided that the amounts allocated for it are included annually in the general budget. The funds are distributed among the federations by a decision of the Interior Minister, and are devoted to developing studies or implementing joint projects that have completed their studies and to revitalize the regions, especially in rural areas.
  • Donations and personal wills.

The decisions of the Federation Council are subject to the authority of administrative control in accordance with the provisions, principles and rules applicable to the municipalities.

Federations (Unions)

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Thirty-two of the selected municipalities are found in the governorate of Mount Lebanon, while there are only five in each of the governorates of South Lebanon and North Lebanon, two in Nabatiyeh, one in each of the governorates of Bekaa, Baalbek-Hermel, and finally the one and only in Beirut. As for the federations of municipalities, they are distributed among the governorates as follows: twelve in Mount Lebanon, eleven in Akkar, and seven in each of the governorates of North Lebanon, Bekaa, Nabatieh, and Baalbek-Hermel, in addition to five federations in South Lebanon.

All of Lebanon
Reason Federations Municipalities