Corruption in the first year of El Sisi ruling

strong speech and ineffective Legislative measures

by
Partners for Transparency Foundation (PFT)

A.
148 Misr Helwan El-Zyrae Road , El Matbaa Sq, Hadayek El Maadi, 11th Floor, No 112 , Cairo, Egypt

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E.

T.

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Introduction
In 8th of June 2014, Mr. Abdel Fattah al-Sisi held the position of President of the Republic, after a
presidential elections he won with the majority of votes, in the background of a new revolutionary
wave in the June 30th , 2013, it was as a complementing for revolution of January 25th, 2011, which
called for democracy, the fight against corruption and social welfare.
Corruption and lack of transparency were of the most important reasons that prompted the Egyptians to
revolt against former President Hosni Mubarak's regime, and the absence of real will to combat
corruption, was one of strongest justifications for the second revolutionary wave of former President
Mohamed Morsi, thus, there is a firm conviction among the Egyptian people in the recent years that
corruption is one of the biggest challenges that undermine democracy, disrupts development efforts and
detracts from justice in the distribution of its returns.
So, Partners for Transparency Foundation (PFT) through this analytical report aiming to defined the
features of the related "political will" to fighting corruption, through observing and analyzing the
political speech of president Abdel Fatah El Sisi, during the first year of his mandate, which related to
his position of the corruption, addition to observing and analyzing the most important decisions and
legislation related to fighting corruption, as well as review the most important crimes of corruption that
have been detected, and how the concerned authorities dealt with them in the same period.
The primary purpose from this analytical report issues by Partners for Transparency Foundation (PFT),
is to assist relevant stakeholders (inside and outside the Authority) to adopt a political speech,
legislative and administrative procedures and practices of anti-corruption during the second year of
President Abdel Fattah Al-Sisi's mandate, especially the corruption phenomenon in Egypt need toan
integrated package of interventions for besiege it.
Corruption in president El Sisi's political speech
In his first public speech after he was elected in 8th June-2014, president El Sisi said" I call for the
leaders of state institutions to develop them, may fighting corruption be our slogan in the next phase,
and it will be all-out confrontation against corruption in all its forms, and he will not be mercy with any
convicted in corruption crimes whatever their size", he also linked directly between corruption and the
preservation of public money when he said " our next phase require every sincere honest effort puts
preservation of the public money in mind, leat us fear God, all in the money of this country and the
people".
Almost a month after this speech, exactly in 6th July-2014 the president ElSisi said in his meeting with
chief editors of national and private newspapers, that fighting corruption on the top of his priorities,
pointing out that he will never allow himself or his children to take one penny they dose not earned
from Egyptians'' public money, he said" My upbringing and moral based on the rejection of corruption,
and not allowing myself or family to take one penny unjustly, then how can I allow others to
corruption and exploitation of the people".
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In 27th April 2015the president Abd El Fatah Al Sisi said during the celebration of Worker's Day" the
integrity and non corruption are not enough to end our commitments and existing projects" and he
added that he will not interfere in supervisory body's work in the state to cover up any corruption.
Two weeks after this speech, exactly in the 12th May- 2015, the president Al Sisi emphasized in a
television speech, that he strictly follows the laws amendment of the supervisory bodies to facilitate
the elimination of corruption of state institutions and apparatus, indicating that the government did not
start from scratch, and it working with good results.
President seemed follow up the tuned corruption issues, in his speech when he mentioned the related
statics, he indicated that the supervisory bodies tuned 344 bribe and illegal earns cases, during the past
period, beside 3.5 billion pounds were recovered, as a value of land that was usurped, and he
mentioned that 135thousand square meters of land were also recovered, and there are other actions to
recover other lands land spaces were not used, president also said " we facing corruption with a real
and strong political will, and work to not interfere in the supervisory bodies' work, beside addressing
corruption by new action plan".
The last announcement of the president related to corruption was in 30th May 2015, during the opening
of the marine arsenal in Alexandria, when he said in his speech talking to the officials of the state"
please fight corruption seriously, effectively understanding, sincerely and honor ", and added"
corruption effect and break morale of the people and kills their hope".
Far from the official discourse on different occasions, corruption issue and the position of authority
from it were put forward in several meetings of President Abdel Fattah al-Sisi with investors groups
and Egyptian and foreigners businessmen, in the most of these meetings the president repeated his
declared position of corruption and the how seriously the state fighting it.
The last announcement of the president Abdel Fattah al-Sisi in the businessmen communities, what he
said in his meeting with Germany businessmen at 3June -2015, he said" we work now in Egypt with
good will to spread Transparency and the fight against corruption to provide a fair investment climate,
that we do not invite you to invest in Egypt to straggle and suffer with corruption and routine, but we
invite you in light of the state efforts to illuminate corruption and raise the power of law.
Notes on the presidential political discourse relating to corruption
Through the former official announcements of the president of the republic which related to
corruption and were included in 5 official speeches in a deferent occasions, we can conclude a number
of indications including the following:1- it is obvious that president Abdel Fattah al-Sisi adopting an" intolerant" political speech in
regard of corruption, and the perpetrators of crimes in the manipulation of public money, which
was revealed from his stressing and repeating of this point during his speeches.

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2- It seemed that the president is follow up the conducting actions of the deferent supervisory
bodies in regard of corruption and waste of public money cases, it shown from his mention of
figures and statics in some speeches.
3- The strength of the Presidential political speech against corruption seems to be different in a
positive way, comparing with the speeches of former presidents related to the same issue.
4- Despite of the positives of the Presidential speech related to corruption, but it did not includetill now- promises with specific legislative procedures and future government practices to
combat corruption, specially that the current legislative system contains many loopholes that
"passes" them corrupt.
5- The president speech focus in most of it in talking to officials in the deferent locations, and
links between belonging to the homeland on one hand, and the necessities of fighting corruption
on the other hand.
6- It seems from the president's speech that he is completely aware the effects of corruption on
business and investment climate in Egypt, which makes him addressing this issue frequently in
his meetings with the investors and businessmen groups.

Second: - Legislative actions and decisions

the strong political speech of president Abdel Fatah El Sisi in regard of corruption dose not
commensurate with the limited legislative actions taken during the first year of the rule of President
Abdel Fatah El Sisi, despite the president has the Legislative authority in the absence of elected
parliament yet, but he did not use this power - so far - in the issuance or amendment legislation related
to fighting corruption, to grantee that the perpetrators of these crimes will not go unpunished.

In December 2014, the prime minister lunched- what he called- Strategic Plan to combat corruption
2015-2018, which is a general framework includes vision, mission and specific axes to fight corruption,
but it did not include specific actions or promises of a new legislation map will emerge from this plan.
Perhaps the most significant conducted actions in this regard is the prime minister's decision No
244for the year2015, in 5th February-2015, of forming a coordination committee to combat corruption
headed by the prime minister, and composed of: Minister of Planning and Follow-up and
administrative reform, Minister of Local Development, Minister of Justice, Minister of Social
Solidarity, President of the Administrative Prosecution Authority, Head of the Administrative Control
Authority and representatives of : Interior Ministry, Foreign Affairs Ministry, General Intelligence,
Central Auditing Organization, Money laundering unit, the Public Prosecution.

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We can also consider some articles in president's decision of service law No 18 for the year 2015, as a
limited legislation actions to combat corruption , where it stated that employment must be through
appointment, upgrade, transportation, of Mandate, or loaning, taking into account the fulfillment of the
job conditions, and the appointment shall be by decision of the President of the Republic or his
authorized representative, on the base of skills and merit, without favoritism or mediation.
From the monitored action also , president's decision issues in 9 April -2015, in regard of appoint
Major General Mohammad Omar Heaba, the former Chairman of the Administrative Control
Authority as the President of the Republic's advisor for fighting corruption, his mission is to follow-up
and ensure cooperation and coordination between the Administrative Control Authority and the various
security apparatus, and providing practical proposals and ideas to develop the system of fighting
corruption generally.
Analysis of legislative procedures relating to corruption
Through analysis the legislative procedures and decision were taken by the president and his
government during this first year of his mandate, we can come up with a set of significance
observations including the following: 1-

There is still a huge gap between the president's political speech and the legislative procedures,
that in a hall year the president has the legislative power, but he did not issue any law related to
activating the Oversight bodies' role and strengthen their independence to consist with the
provisions of the Constitution of 2014.

2- So far, no Substantial amendments was made in the laws and legislation package which is
assumed to fight against corruption such as(fight against corruption law issued in 2013,
provisions of the Penal Code on the issue, anti-money laundering law, illegal earning law,
government accountability Act, etc.. ).
3- The civilian service cod does not provide an adequate framework to fight corruption, where it
contented only by put the foundations to hold public positions, without putting sufficient basis
for the practices of the occupants of these positions.
4- The legislative procedures did not consider to revise the structures and procedures governing
the work of anti-corruption bodies.
5- The coordination committee formed by the prime minister seemed to be pro forma rather than a
committee able to act, specially it does not include experts, also its formula makes it periodic
meetings difficult, and its decisions unpractical.
6- Assigning an advisor for the president of the republic in regard of fighting corruption id a good
move, but it's important to consider the actual practices during the next months, to be seen
whether the powers granted to the man are real and serious or pro forma and protocol.

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Third :- how the state dealt with the corruption issues during the first year of the president's
mandate
During the period from June -2014 to the end of May 2015, Partners for Transparency Foundation
(PFT) observed 22 corruption incidents of the local authorities, the state administration, Public sector
companies, and they were all detected, despite this number might be not a comprehensive inventory of
the corruption incidents and cases during the same period, but it represents essential "Features" to the
phenomenon of corruption, and how the govern authorities dealt with it in the first year of president
Abdel Fattah al-Sisi's mandate, the most significant monitored corruption incidents are following:1. In 13th May-2015, a corruption incident was tuned, it was about that, the localities did not collect
25 million pounds in favor of the state, after receiving information accused the Road occupancy
management officials in the Eastern district , Alexandria governorate, and some employees in Real
Estate Taxes department of in collusion with the perpetrators of the road occupancy irregularities
scope of the district and inaction in the collection of fines for offenses in the district's scoop, and
the omission of collecting fines for violations, during the years 2013 &.2014, they also recorded
8137 voucher for Storage of demolition and building for only 323housand pounds, while the fines
owed estimated with 25.5 million pounds, the case is now pending before the Alexandria
resumption prosecution of public funds.
2. In 8th May 2015 the administrative prosecution authority referred 11 officials of culture and funds
ministries to trail, accusing them of funds corruption and wasting public money, in the limited
tender No. 1, for developing the periodicals hall at the National house of Library and Archives.
3. In 27th April-2015, Giza public prosecution decided to imprison the adviser of Agriculture minister
in custody, accusing him of scam cases through claiming get approvals of Agriculture Minister for
the allocation of land in different areas, and taking money and bribe included 150 thousand pounds
from a business taking advantage of hid official position .
4. In 21th April 2015, the judicial report of the case No111 for the year 57 education, revealed a
defect and corruption in the authoring and printing process in the school books, of Education
ministry of deliberately, in purpose of earning a huge amounts of illegal money, which resulted in
wasting millions of pounds in printing the same old books, with changing only the covers, to
delude that they were developed the curriculum by the members of the development committee,
the consultant Anani Abdel Azez the head of the Administrative Prosecution Authority demanded
from the education ministry to interfere to repair the deficiencies and imbalances, by amending the
ministerial decree No. 266/2007 of the regulations for the preparation of academic books and
publications.
5. 11th April-2015, the head of administrative prosecution authority referred 7 officials of the
Egyptian general authority for Exhibitions and Conferences' leaders to trail, accusing them of
wasting public money, the offenders list includes the former head of the Egyptian general authority
for Exhibitions and Conferences, general director of planning and follow-up, general manager of
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financial affairs and others, for made deals and contracts with Nile valley company, to ensure that
the company's commitment to do the work of drawings and designs for the development and
renovation project of buildings and interior facilities of the authority without any criterion standard
for acceptance, or refusing, and without technical specifications required to be submitted to the
works, then violating the contract through attribution of the same mission to KKS the English
company, despite the absence of any contractual relationship with that company, and Violation of
the provisions of tenders and auctions Act and its implementing regulations. .
6. In 30th March 2015, the administrative prosecution issued a press release, revealed of a large
financial corruption at the Foreign Ministry, the case facts included 7 Egyptian embassies in
Europe and some Arab countries, the statement singled out the decision of the High Disciplinary
court of the state council in the case, where the court emphasis on involving three official from the
leaders of finance affair and the minister's office, in forging official documents, according the case
documents, that the three defendants have committed 28forgery crime to seize the funds in hard
currency, these amounts reached to more than 7 million pounds, the court ruled that the first
defendant the Head of central department for Financial and administrative Affairs of the Foreign
Minister Assistant's office, to be suspended for 6th months from work, the second accused the
former first proxy of Foreign Affairs Ministry, and the third former Head minister's office sector to
be fined with five times the basic salary he was receiving each before being forwarded to retire.
7. In 21th March2015, the administrative prosecution monitored a corruption case inside the bureau
of Gharbia province, revealed of involving 7 of the governorate leaders, included former general
secretary of the province, accusing them with manipulating the Ethiopian meat deal, and the
defendants were referred to the court for trail.
8. In 28th January 2015, the Administrative control officers in Cairo arrested the general director of
general Authority for Cultural Palaces and a private sector contractor, after the general director of
Engineering affairs took a bribe to facilitate receipt nonconforming work, after the authority
received information about existence of suspicious transactions between the general director of
culture palaces authority, and a private contractor executing construction operations for the
Authority, an ambush was set up for the general director and the contractor, and they were caught
with 30 Thousand pounds as a bribe in return receive a business does not comply with the technical
specifications in one of the construction operations the authority will supervise them, they were
seized and the amount at the disposal of the public prosecutor.
9. In 17th December 2014, the Administrative prosecution examined the Central Auditing
Organization(CAO\) report, which revealed the existence of financial corruption, within the
Minister of Education, Dr. Mahmoud Aboul-Nasr's office, after the CAO monitored spending
Thousand pounds as allowances of meals for the Minister's secretariats, during the 195 days, the
examination was for ensure of the truth about these information.
10. In 22th November 2014, the administrative control in Dakahlia governorate referred the officials
of Mansoura university cities, to the public prosecutor for investigate in a number of corruption
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facts, were exposed by a report issued by the Central Auditing Organization on February 12, 2104,
which was in regard of general administration of Mansoura University, it revealed the irregularities
of the food supplies for the university cities, where the report discovered the existence of many of
irregularities in the buying process of meat and poultry varieties, as well as the report proved
spending mony amounts by fictitious invoices under names of some trade association, the amount
was over 5 millions in only5 months.
11. In 4th November 2014, the Eng "Hani Dahi," transport minister referred to the public prosecution
the largest corruption case in the railways sector, which reveals that the body official in Luxor and
Aswan governorate took over the diesel fuel and gasoline allocated for trains and sold it on the
black market, as well as their involvement and other workers in steeling Scrap metal from the
workshops, and indulgence in infringement of the the Authority property of the railway club in
Luxor.
12. In 23th October2014, the administrative prosecution in Sohag began an investigation into the
irregularities head of the head of Awlad Yahya village's council, and other employees, accusing
them corruption through serious financial and administrative irregularities, includes delivery of
some facilities for the violation building, and embezzlement of equipment funds of the village
council.
13. In 8th September 2014, a judicial report by the administrative prosecution for Media and Tourism
revealed a corruption case inside Maspero, the report included the involvement of general manager
specialized Nile channels of sector in offenses criminal, and to facilitate the acquisition of public
money, and the manipulation of the assigning of 11 people from outside the Maspero "executive
directors ", and by submit the case papers to the deputy President of the administrative prosecution
authority, decided to refer the accused to trial.
14. In 16th August 2014, the Administrative Control Authority and Investigation of public funds
arrested the Vice President of Helwan district, red-handed during taking three thousand pounds as
a bribes from a citizen,to facilitate renting parking yard in Helwan, where Brigadier "Shoaib
Ashabi", the President of the Helwan Oversight Administrative Office and Colonel Mohammed
Baheeg managed to record the bribery incident, video and audio, and arrested the accused redhanded, and referred him to the funds public prosecution of the South Cairo for interrogation.
15. On 12th August 2014 public funds Investigation succeeded in arresting a number of senior
officials of Cairo districts "district of Dar el Salaam," and Giza "Bulaq El Dakrur district," Qalubia
" Qalioub city center ", for causing loss of millions pounds belong to the state, for their covering
up the infringement of state property-peer received bribes, the public funds investigation made it
clear that the necessary reports of the case were filed, and refer them to public prosecution, which
took over the investigation.
16. On 9th July 2014, officers of police facilities investigation in Cairo, were able to arrest the chief
assistant of El Sayeda Zeinab district, litigation charges of bribe in exchange for facilitating a
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trade booth's licensing procedures, that was after the of facilities investigation police received a
report from "Mohammed Mahmoud," the owner o the booth in El Sayeda Nafisa area, against the
chief assistant of El Sayeda Zeinab neighborhood, for demanding bribe in exchange for ending its
booth's licensing procedures,
17. On 8th July2014, the administrative control arrested the director of Investment Minister office, for
taking a bribe from a partner and director of one of the major malls in Cairo in exchange of assist
him for getting some distinctive plots of land in purpose of set up projects on them, the general
prosecution of Cairo decided to imprison the accused in custody.
18. On 8th July2014, administrative control bodies in cooperation with the Giza governorate, arrested
two employees of North Giza district staff, red handed with charging a bribe from a citizen, a peer
extracted a showing window license, in the scope of the neighborhood, and the public prosecutor
decided to imprison them under investigations.
19. On 8th July2014, Cairo police forces succeeded in arresting an employee in Khaleda Petroleum of
the General Authority for Petroleum Company, during accepting bribes to assign a tender to
another company.
20. On 8th July2014, Aswan prosecution decided to imprison the deputy Minister of Housing Ministry,
and his assist to take 1% of the value of each operation clearance as a bribe from the contractor.
21. On 6th July 2014, the president of the administrative prosecution authority agreed to refer the
officials in Tourism ministry trial on charges of bribe.
22. On 11th June 2014, the administrative control authority," captured "Rear Admiral Ahmad Nagib
Sharaf", head of the provincial ports authority, red-handed in a bribery case in Alexandria.

Notes on the corruption cases that have been detected

1- The procedures of judicial authorities and regulatory authorities characterized by transparency
about the corruption cases, where the most of the crimes that have been monitored announced
through official press releases issued by the concerned judicial bodies.
2- administrative control and administrative prosecution witnessed intense activity over the past
year, the link between the orientations of the new president and the activity of these bodies has
seemed obvious, from the quantity of corruption cases that have been detected and investigated
during the first two months of the of President Abdel Fattah al-Sisi's inauguration the power in
the June 8th , 2014.
3- There are a large number of cases that have moved towards them regulators bodies before the
beginning of President Abdel Fattah al-Sisi rule, but the disclosure and take concrete steps to
hold accountable the perpetrators have done in the first weeks of the rule of President El Sisi.
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4- The most of the detected corruption cases involving in them leaders of the local authorities,
which also emphases the negative impressions of how far the corruption is spread in the local
government, since before the revolution of 25 January 2011 stage, as well as stressed the
necessary of amending the laws package governing the local administration in Egypt.
Final conclusions and recommendations
Through the above analysis, it confirmed for us that political speech of President Abdel Fattah
El-Sisi is bias against corruption, as well as his support for the efforts of the regulatory bodies
in fighting against corruption, but the legislative procedures are poor and absolutely
insufficient, and then we are about a strong speech and ineffective legislative measures, so the
report providing the following recommendations, in order to the second year of the mandate of
President Abdel Fattah al-Sisi holds more powerful promises for Egypt's victory in its battle
against corruption:
1. Forming a national experts committee, to study all existing and proposed legislation to combat
corruption, and provide an integrated legislative vision to amend them and issued them directly
after the formation of the new parliament.
2. Give top priority to amend the laws governing regulatory bodies stipulated in the Constitution,
to guarantee their independence and activate their role.
3. Providing effective mechanisms for reporting corruption cases and receive complaints from
citizens, especially since the current mechanisms inadequate and non-institutional.
4. he issuance of a law to protect witnesses and whistle of corruption cases.
5. There is an urgent need to develop a national indicator to measure the extent of the corruption
phenomenon, based on scientific and objective measurement of the phenomenon with all its
components.
6. The civil society organizations must to play a greater role in educating citizens of their role in
anti-corruption, and the reporting of the perpetrators of its crimes.

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