The Minister of Local Administration and Environment issued a decision on November 9, 2023, Decision No. 2795, that halted the legal settlements for building violations that were being carried out under Law No. 40 of 2012. Because it deprives them of one of their self-financing sources of funding, the decision has sparked criticism from various administrative units, such as cities and towns, which have called for its repeal.

A meeting of the Higher Council for Local Administration, held on November 2, 2023 and chaired by the Prime Minister, deemed it time to halt the enforcement of settlements for unlicensed construction – more than ten years since Law No. 40 of 2012 was issued. This law allowed for the settlement of certain construction violations that occurred before its issuance, while requiring the removal of all unlicensed constructions occurring thereafter. The law did not specify a deadline for completing the settlement process.

The Higher Council for Local Administration was established under Local Administration Law No. 107 of 2011. It includes the Prime Minister as chairman, the Minister of Local Administration as deputy chairman, and the Head of the Planning and International Cooperation Commission, governors, chairpersons of governorate councils, and the Head of the Regional Planning Commission as members. The council meets twice a year and is tasked with developing and overseeing the implementation of a national decentralisation plan, issuing decisions to clarify the working mechanisms of local units, and approving executive regulations and amendments to fees, resources, and compensations.

In its meeting on November 2, the council identified the failure to complete the inventory and physical inspection tables of violations occurring before the issuance of Law No. 40 of 2012 as a reason for stopping the settlement of unlicensed construction. These tables, which were supposed to be completed by the end of 2012, form the basis for settlement as stipulated in the executive instructions of Law No. 40.

The Tartous Governorate responded to the criticisms and objections raised by its administrative units by sending letter No. 363 to the Ministry of Local Administration on January 16, 2024, outlining the drawbacks of halting the settlements. The letter stated that stopping the settlements deprives the administrative units of an important financial resource, as they have come to rely heavily on construction permit fees and settlement of violations to fund their budgets, in accordance with Local Administration Law No. 107 of 2012.

The governorate justified its request to continue the settlement of violations by pointing out that many settlement transactions were in progress, registered in citizen service centres with assigned numbers and dates, making it necessary to complete them. The governorate confirmed that it adhered to the executive instructions of Law No. 40 of 2012 and had submitted inventory tables and physical inspection reports on violations occurring before the issuance of Law No. 40.

In contrast, an official from Damascus Governorate defended the Minister of Local Administration’s decision No. 2795, arguing that the 12 years since the issuance of Law No. 40 of 2012 was more than sufficient to settle all old violations that occurred beforehand. The semi-official newspaper Al-Watan reported in December 2023, quoting the unnamed official, that the past years had been enough to settle any unlicensed construction, and there was no longer any justification for them after tens of thousands of violations had been settled over the years.

It appears that the Damascus Governorate’s support for the minister’s decision came against the backdrop of the scandals that accompanied the settlement of a building violation in a mall for an influential businessman. In 2018, the Damascus governorate issued a decision to settle an unlicensed construction on a public property at the BigFive Mall in the Midan area. This decision was based on evidence provided by the mall’s investor, Bilal Naal, which claimed the violation occurred before 2012. However, in October 2023, the Damascus governorate discovered that the evidence provided by Mr Naal was incorrect and that the violation had actually occurred after 2012. The governorate then decided to demolish the mall. After some deliberation, a compromise was reached to postpone the demolition and removal of the mall until the implementation of the area’s zoning plan in 2028.

Notably, the violation at BigFive Mall involved construction on public property, which, according to Law No. 40 of 2012, requires demolition regardless of when the violation occurred. Violations that can be settled under Law No. 40 of 2012 do not include encroachments on public property or violations that do not meet structural safety standards.

Law No. 40 specifies that the settlement fine is twice the estimated benefit factor of the violation, which is calculated based on executive instructions. To estimate the benefit factor, complex calculations are used, involving weighting factors. There is no single standard to follow, especially since administrative unit councils rely on the real estate’s current market prices.