Closed centers: RTA grapples with financial difficulties as state loses billions

Lebanon's Road and Transport Authority (RTA) faces dire financial challenges as the State Treasury lost an astonishing LBP 552 billion in just two months due to the closure of service centers.

The RTA was a crucial source of revenue, providing LBP 23 billion daily to the state treasury when they operated three days a week.

The closure came after disputes with the company Inkript over payment terms, ultimately resolved in favor of the state, allowing it to pursue legal action against Inkript.

Currently, RTA has reopened to resume processing pending transactions. Thus, if it was no longer possible to submit to the company that deprived the state of a "goldmine," it reopened its five centers and the operating system to manage the pending transactions.

Representatives from these centers, Marwan Abboud, the acting head of the Traffic Management Authority, and Ali Taha, the acting head of the RTA, convened for a three-hour meeting to discuss the new pricing structure for driver's licenses, vehicle registration, and electronic tags.

Inkript has proposed reducing the cost of these transactions to between one and two dollars. If the government approves these rates, the price for a driver's license could potentially increase from LBP 42,000 to LBP 1.5 million, not accounting for operational expenses.

Similarly, the cost for a vehicle registration book may rise from LBP 42,000 to LBP 1.2 million, based on an exchange rate of LBP 90,000 per US dollar, as specified in a government decision outlining how operator fees are calculated.

While these numbers remain tentative, estimating the treasury's profits will be challenging.

Nevertheless, the state will be able to meet its obligations to Inkript. This action would require legislation, if deemed necessary, to increase fees.

Today, this "goldmine" has the potential to generate LBP 45 billion daily from the RTA center in Dekweneh alone, assuming a swift resolution is reached.