This year the Egyptian Parliament approved three laws issued by presidents Adly Mansour and el-Sisi during 2014 and 2015 which amend the legislative and punitive framework for corruption in the public sector. One of the laws essentially offers amnesty to members of the government who are found guilty of corruption, as long as they return part of the stolen funds.

This year the Egyptian Parliament approved three laws issued by presidents Adly Mansour and el-Sisi during 2014 and 2015 which amend the legislative and punitive framework for corruption in the public sector. One of the laws essentially offers amnesty to members of the government who are found guilty of corruption, as long as they return part of the stolen funds.

Penal Code 16 – put forward by President el-Sisi in March 2015 – stipulates that anyone who embezzles public money, makes profit out of his/her civil position, encroaches on public land, or damages public money or goods may negotiate with a representative of the Executive and compensate for such crimes through partial reimbursement of the stolen public funds. The repayment ensures the accused avoid penal sentences.

Small price to pay

Article 18 of Penal Code 16 states: “Compensation may be paid concerning the crimes as set forth in Chapter IV of Title II of the Penal Code as per a settlement decided by an expert committee to be formed by the Cabinet… The Cabinet shall inform the Attorney General whether the case is still under investigation or trial. Compensation shall replace the criminal punishment and any relevant punishments issued against the accused shall be subject to stay of execution… In all cases, the effect of compensation shall cover all the accused or convicted.”

In August, President el-Sisi promised to be strong on those found guilty of corruption, after half a billion Egyptian dollars (56 million USD) of public money disappeared from a wheat transaction. The Prosecutor’s Office however released the offenders after they agreed to repay a few hundred million to the state – less than 10 per cent of the missing sum.

The repayment amnesty law was officially intended to recuperate public funds stolen by officials during the Mubarak era, yet it has reinforced the lack of accountability for remnants of that regime. Hussein Salem, for example – a former Mubarak cronie – agreed to forfeit 75 per cent of his domestic wealth, including his private jet, to the state to avoid charges.

Penal Code 16 is part of a triplet of laws that commentators say have encouraged corruption in Egyptian politics. In September 2013, President Adly Mansour issued a decree amending the Purchase Law (PL), thus allowing, in urgent cases, for contracting by direct agreement.

Contracts without oversight

Pursuant to the PL, a minister or a governor may now contract with any private company at their discretion to carry out works in “urgent cases” at a maximum of L.E. 10 million (1.12 million USD). The PL however does not determine the nature of urgent cases. Ministers can thus handle large tenders without oversight, accountancy or regulation. A clause in the PL allows high-ranking ministers and governors to contract services of more than 2 million US dollars without oversight or control.

Another law passed in April 2014, Law 32 of that year, protects parties in state contracts from independent scrutiny or legal challenges. Article 1 allows for the challenging of contracts entered into by the state with investors by the parties to the contract only. Article 2 thereof dismisses the challenge claims currently examined by courts unless they are made by one of the parties to the contract.

Violating nine constitutional articles, notably the right to litigation, Law 32 caused fierce debate within the Parliament last January but it was finally approved. Some saw the law as immunizing privatization contracts and paving the way for the selling of public property cheaply to private investors.

Law 32 has been referred to the Constitutional Court (CC) to examine its constitutionality. Meanwhile, the Administrative Court has suspended the examination of the challenging claims made against privatization contracts, including the contracts of Sukari Mine, Cairo for Oils & Soap, Alexandria Bank and Assiut Cement, pending the CC’s decision.

In Law 32, there is a differentiation between stealing private money, where the offenders are not released even if they pay what they have stolen, and the theft of public funds where partial repayment affords the perpetrators impunity.

Whistleblower regulator fired

The triplet of new legal decrees have entrenched a culture of corruption and impunity, according to legal experts, allowing public servants to award contracts without tender and embezzle public funds without consequences. The landscape of corruption was further reinforced after the state regulator was fired for discussing the current “scope of corruption.” He was replaced by the former Cairo governor, who faces accusations of corruption from his time as Minister of Transport.

These laws obstruct justice and legal deterrence and contradict procedural laws that safeguard the interests of individuals and protect public money,” says Hussam Haddad, a human rights lawyer at the National Community Center. Haddad told Correspondents that the three laws are aimed at preventing the judiciary from controlling the Executive’s decisions. The laws prevent litigation and protect state contracts from legal challenges; they also oblige the Attorney General to release corrupt members of the government when they pay compensation, says Haddad.