BEIRUT: The government authorized Justice Minister Shakib Qortbawi Tuesday to investigate cellular operators mtc touch and Alfa to determine whether there were any violations in the contracts they signed with former Telecoms Minister Marwan Hamade.

Sources told The Daily Star that the Cabinet took this step after Energy and Water Minister Gibran Bassil, who was the telecoms minister in 2009, insisted on opening the file, arguing that the companies were unlawfully exempted from paying taxes after reaching an agreement with Hamade.

Bassil claims that the minutes of the agreement between the cellular operators and Hamade were fixed by the former telecoms minister in order spare the companies from paying taxes.

Bassil also believes close to $50 million is missing and consequently the minister wanted the government to open an inquiry into this issue.

Finance Minister Mohammad Safadi has previously asked the two cellular operators to pay all the taxes they owe the government since 2008.

Sources believe that Bassil’s action was part of a drive by the Change and Reform bloc to open what it terms the corruption files in Lebanon.

Information Minister Walid Daouk told reporters the telecoms file had been transferred to the justice minister after receiving a tip on this issue and subsequently the government decided to reopen the file.

During Tuesday’s session, the government also agreed to buy 50,000 gallons of olive oil for LL2 billion for the Lebanese Army.

It also agreed to give an advance payment of LL78 billion to the Education Ministry in order to pay the state’s contribution to free private schools.

The government also granted another advance payment of LL17.287.5 billion to the Council of the South.

It also agreed to give an advance payment to the Telecoms Ministry to settle the cost of installing the international higher-capacity cable, which is better known as the IMEWE cable.

In addition, the government agreed to fill some vacant positions at Electricite du Liban.

The government also authorized the energy minister to draft the book of conditions to build the Assi water dam.

The Cabinet decided to discuss Bassil’s proposal to remove the VAT on red gasoil until Wednesday.

However, it remains unclear whether the government will approve Bassil’s proposal to remove the VAT on red gasoil because some ministers fear that this measure would increase the budget deficit next year.

Critics also argue that the Bassil’s proposal must also receive the approval of the Parliament.

Among the main topics to be discussed Wednesday is the 2012 draft budget prepared by Safadi which faces strong opposition from many ministers who oppose any new taxes for the time being.