Global Integrity Report

Egypt Home

Facts

Timeline

Notebook

Integrity Scorecard

2007 Assessment

Egypt: Integrity Indicators Scorecard

Egypt: Integrity Scorecard Report > Sub-Category: Privatization
Indicators		Score
50	Is the privatization process effective?	83
51	Can citizens access the terms and conditions of privatization bids?	75

Indicator and sub-Indicator Details

Is the privatization process effective?

50a: In law, all businesses are eligible to compete for privatized state assets.

Score:

YES

Comments: In accordance with law no. 43/1974 for organizing investments, all businesses are eligible to compete for privatized state assets.

References: Law no. 43/1974 for organizing investments

50b: In law, there are regulations addressing conflicts of interest for government officials involved in privatization.

Score:

YES

Comments: Article 81 of the Egyptian Constitution states that the president of the republic is prevented from doing any form of business or contracting with the state as supplier or contractor. Article 158 also bans these activities for ministers and deputies. Legislators are also prohibited from doing these activities by virtue of article 95 of the Egyptian Constitution. The companies law no. 203/1991 forbids members of the governing board of any company from selling or buying anything from the same company unless they obtain the consent of the general assembly of the company.

References: The Egyptian Constitution, articles 81, 95 and 158. Companies law no. 203/1991.

50c: In practice, conflicts of interest regulations for government officials involved in privatization are enforced.

Score:

100

Comments: Conflicts of interest regulations for government officials involved in privatization are enforced. By virtue of law no. 2 concerning illegal profiting, all civil servants at all levels are required to present asset disclosure records showing their own properties and the properties of their spouses and children. Legislators, all leaders in general companies in which public money has a share, heads of professional syndicates and labor unions, members of the governmental bureaucratic apparatus including village mayors,chiefs and neighborhood chiefs are particularly required by law to give asset disclosure records that are monitored and checked by the Illegal Profiting Apparatus. This same apparatus is authorized to investigate complaints and reporting presented to it and is also permitted to convert cases to the administrative monitoring authority. In times of transition to privatization, the possibilities of buying government officials are intensified as a means for buying state-owned companies. It is here that lies the utmost importance of the above financial and administrative monitoring apparatuses.

References: Law no. 2 concerning illegal profiting Law no. 89/1998 for organizing bids and auctions.

Peer Review Comments: Most of those who work for governmental authorities do not provide a report that lists all their property, although according to law they have to present one every five years. If they do happen to provide one, they fill it with false information.

Can citizens access the terms and conditions of privatization bids?

51a: In law, citizens can access privatization regulations.

Score:

YES

Comments: In accordance with article 40 of law no. 89/1998 for organizing bids and auctions, citizens can access the terms and conditions of privatization bids.

References: Article 40 of law no. 89/1998 for organizing bids and auctions.

51b: In practice, privitizations are effectively advertised.

Score:

100

Comments: According to article 2 of law no. 89/1998 for announcing bids and auctions, privitizations are effectively advertised, but the statements of the senior officials after privatizations always raise many problems.

References: Law no. 89/1998 for organizing bids and auctions.

51c: In law, the government is required to publicly announce the results of privatization decisions.

Score:

YES

Comments: The government is required to publicly announce the results of privatization decisions. According to article 40 of law no. 89/1998 for organizing bids and auctions, the agency in authority is required to announce the reasons for all decisions pertaining to bids and auctions.

References: Article 40 of law no. 89/1998 for organizing bids and auctions.

51d: In practice, citizens can access privatization regulations within a reasonable time period.

Score:

100

Comments: According to law no. 89/1998 for organizing bids and auctions, citizens can access privatization regulations within 60 days. Announcements are made on the web-site of the company and in three widespread papers. 60 days is a reasonable time period.

References: Law no. 89/1998 for organizing bids and auctions.

51e: In practice, citizens can access privatization regulations at a reasonable cost.

Score:

100

Comments: In practice, citizens can access privatization regulations at a reasonable cost. Citizens participating in bidding are required to pay 5 percent of the estimated value of the enterprise as a temporary regained insurance for entering the bid. This is of course a high cost for most citizens.

References: Law no. 89/1998 for organizing bids and auctions.