Washngton:  The US government has imposed sanctions on two brothers from Lebanon who are alleged to have sold contaminated fuel to Lebanon and participated in corrupt activities that aided in the demise of the rule of law.

The US government has taken action against Raymond and Teddy Zina Rahme as a result of their dishonest business practises, according to Brian E. Nelson, the under secretary for terrorism and financial intelligence at the Treasury Department, who stated this during a press briefing on Wednesday.

The Treasury Department's Office of Foreign Assets Control, which is responsible for designating individuals, was in charge of the brothers' designation.

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According to reports, the Rahme brothers are successful, well-connected, and wealthy businessmen who have won government contracts to import fuel for the nation's power plants. The Treasury Department claimed that the brothers' acquisition of the contracts involved a dubious procedure intended to benefit them personally.

The brothers' UAE-based company, ZR Energy DMCC, won a state contract in 2019 to import 150,000 tonnes of fuel to prevent a power crisis in Lebanon, according to Nelson during the briefing, which the Arab News was present for.

He continued, "Instead of importing quality fuel, it imported tainted fuel, which damaged power plants and had an impact on the Lebanese population."

A Lebanese judge accused ZR Energy DMCC of money laundering and bribery in 2020 for its involvement in the fuel import scandal.

According to Nelson, the country's prosecutors chose not to pursue the initial accusations, but the scandal exposed a sizable corruption network in Lebanon that had allowed the brothers to fudge the results of tests on fuel samples in exchange for bribes like pricey gifts and international trips.

Nelson claimed that despite calls for political and economic reforms, the government of Lebanon has disregarded them despite the country being mired in a protracted financial crisis during which the currency has lost more than 95% of its value against the dollar.

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He continued by saying that according to estimates from the Treasury Department, Lebanese banks permitted some customers to transfer at least $456 million out of the nation, and that as a result of inaction in enacting reforms and addressing systemic corruption, the energy infrastructure for the Lebanese people is deteriorating.

According to Nelson, the Rahme brothers are not associated with any specific political movement in Lebanon as a result of the sanctions designation.

He continued, "The Rahme brothers have been designated by the US Treasury Department to impose a personal financial cost on those who engaged in corrupt practises at the expense of the Lebanese people.

"The designation demonstrates how corruption is particularly pervasive in Lebanon's electricity sector."

The sanctions prevent the Rahme brothers from conducting business in the US or interacting financially with entities or people who are US citizens.

According to the Treasury Department, the Office of Foreign Assets Control, "all property and interests in property of the individuals, and of any entities that are owned, directly or indirectly, 50% or more by them, individually or with other blocked persons, that are in the United States or in the possession or control of US persons, must be blocked and reported to OFAC."

Nelson urged the Lebanese government to advance the reforms as well.

More than ever, he urged the Lebanese government to carry out urgently required political and economic reforms. For the country to receive billions of dollars in foreign financial aid, reforms are necessary.

Since Michel Aoun's term as president expired in October and the political establishment was unable to agree on a replacement, Lebanon has been experiencing an economic crisis.

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Last month, as part of a tour of the area, US assistant secretary of state for Near Eastern affairs Barbara Leaf paid a visit to the nation. Later, she stated that the US remained devoted to assisting efforts to stabilise Lebanon and its populace. She emphasised the recent financial support that Washington gave to members of the Lebanese Armed Forces in particular.