Unlicensed factories continue to operate in Lebanon with complete impunity despite relentless efforts by the Ministry of Industry to end this phenomenon. The Industry Ministry Monday appealed to all municipalities in the country to give a count of the industrial plants operating in their regions without having any license or permit.
In a statement to the press, the ministry noted that Le Profond plastic factory in Metn, which caught fire Sunday, did not have any license.
It added that the factory, which employed dozens of people, operated without the knowledge of the Industry Ministry.
The ministry said Monday that it had appealed many times to the municipalities to conduct a survey of all the industrial plants in their areas to verify if all of them have proper licenses and permits.
The ministry stressed that municipalities cannot turn a blind eye to this phenomenon.
“We are asking the municipalities to take a quick action and report to us the names of the factories which operate without any license. These unlicensed factories can submit a request to the Ministry of Industry to legalize their operations,” the ministry said.
A leading industrialist, who spoke on condition of anonymity, told The Daily Star that unlicensed factories have been operating in almost every region of Lebanon for many years.
He added that there are at least 4,000 factories that employ 10 people or more and that operate without any licenses.
“In addition, there are 6,000 small workshops with less than 10 workers operating without any proper license. You can find these workshops in the southern suburbs [of Beirut], in the Bekaa Valley, in the north of Lebanon and in the south,” the industrialist said.
He admitted that it takes a very strong political will halt illegal factory operations in Lebanon.
“How can these factories operate without any license and how can they protect their workers in case of any accident? It is clear that the workers in these plants do not have kind of social security of medical coverage,” the industrialist said.
He added that the illegal factories refuse to register at the Ministry of Industry to avoid paying taxes and VAT as well as social security for their workers.
Economists say the informal economy is one cause of heavy losses to the economy and the treasury because businesses operating within it refuse to pay any tax to the state.
The industrialist estimated that there were close to 1,200 registered factories in Lebanon in 2009.
“Industry Minister Hussein Hajj Hasan has more details about the number of licensed and unlicensed factories in Lebanon. He can’t solve the problem ... if the Interior Ministry and municipalities do not crack down on unlicensed factories,” he said.
In a statement to the press, the ministry noted that Le Profond plastic factory in Metn, which caught fire Sunday, did not have any license.
It added that the factory, which employed dozens of people, operated without the knowledge of the Industry Ministry.
The ministry said Monday that it had appealed many times to the municipalities to conduct a survey of all the industrial plants in their areas to verify if all of them have proper licenses and permits.
The ministry stressed that municipalities cannot turn a blind eye to this phenomenon.
“We are asking the municipalities to take a quick action and report to us the names of the factories which operate without any license. These unlicensed factories can submit a request to the Ministry of Industry to legalize their operations,” the ministry said.
A leading industrialist, who spoke on condition of anonymity, told The Daily Star that unlicensed factories have been operating in almost every region of Lebanon for many years.
He added that there are at least 4,000 factories that employ 10 people or more and that operate without any licenses.
“In addition, there are 6,000 small workshops with less than 10 workers operating without any proper license. You can find these workshops in the southern suburbs [of Beirut], in the Bekaa Valley, in the north of Lebanon and in the south,” the industrialist said.
He admitted that it takes a very strong political will halt illegal factory operations in Lebanon.
“How can these factories operate without any license and how can they protect their workers in case of any accident? It is clear that the workers in these plants do not have kind of social security of medical coverage,” the industrialist said.
He added that the illegal factories refuse to register at the Ministry of Industry to avoid paying taxes and VAT as well as social security for their workers.
Economists say the informal economy is one cause of heavy losses to the economy and the treasury because businesses operating within it refuse to pay any tax to the state.
The industrialist estimated that there were close to 1,200 registered factories in Lebanon in 2009.
“Industry Minister Hussein Hajj Hasan has more details about the number of licensed and unlicensed factories in Lebanon. He can’t solve the problem ... if the Interior Ministry and municipalities do not crack down on unlicensed factories,” he said.
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