One Year into Israel Conflict: Hezbollah Weakened Militarily but Still Flush with Funds

BEIRUT, Sept 24 — One year after a punishing war with Israel, Lebanon’s Hezbollah has suffered heavy battlefield setbacks but continues to fund its fighters and sustain its social network.

The death of its longtime leader Hassan Nasrallah in an Israeli strike on September 27 last year dealt a major blow, yet the Iran-backed movement has remained cohesive under his successor, Naim Qassem.

Despite growing pressure to disarm, Hezbollah still receives significant financial support. US envoy Tom Barrack said the group has been getting about US$60 million (RM252 million) a month since a November ceasefire. Fighters continue to earn US$500 to US$700 monthly — well above Lebanon’s minimum wage — while families of slain members are provided stipends. Its schools, hospitals and charities also make it one of Lebanon’s largest employers, researcher Joseph Daher noted.

Hezbollah insiders claimed the group has distributed around US$1 billion to 50,000 war-affected families, though this figure could not be independently verified. Unlike in 2006, Qassem has insisted post-war reconstruction be funded by the state, which has yet to begin.

The group’s finances face new strains. Assad’s fall in Syria disrupted supply routes and cash flows from Iran, while Lebanese authorities tightened oversight, banning dealings with Hezbollah-linked Al-Qard al-Hassan. Israel also bombed several of the firm’s branches during last year’s conflict.

Still, experts say Hezbollah relies on a vast network of companies, businessmen and cash inflows from abroad. Though Lebanon suspended flights from Iran and increased checks on arrivals from Iraq, money continues to reach the group. Western governments accuse it of raising funds through global businesses, narcotics and illicit trades — allegations Hezbollah denies.

Analysts argue that Hezbollah thrives in Lebanon’s collapsed, cash-driven economy. According to Daher, the loss of Assad has been its biggest financial blow, cutting smuggling revenues and arms transfers across the Syrian border as the new Islamist authorities there clamp down on Hezbollah-linked operations.  — AFP