Promoting Industrial Growth and Encouraging Foreign Direct Investment in Egypt
The Administrative Control Authority
Industry-Specific Reforms > General Reforms
- Reconsider Articles 115 through 119 of the Penal Code—The Chapter on Public Funds— to counter the prevailing modus operandi of the government, which is characterized by irresolution and hesitancy. In this regard, attention should be given to enacting a specific and clear law holding ministers and public officials politically accountable for their policies and action, rather than limiting their accountability to the legal realm—accountability for criminal conduct. Attention should also be given to providing support to public officials and building their confidence in making decisions that serve the public interest and respond to national development objectives, as long as these decisions are well-studied, and were subject to broad-based and meaningful community dialogue.
Responsible Entities
Date 2/2/2020
Responsible Entities
Date 2/2/2020
Responsible Entities
Date 2/2/2020
Industry-Specific Reforms > General Reforms
- Resolve the confusion surrounding the voting procedures, namely the cumulative voting system for electing board members in companies that are listed in the Egyptian stock exchange, and non-banking financial companies: Circular No. 1 of 2019, issued by the Financial Regulatory Authority, obligates companies to specify cumulative voting as the applicable voting system in their rules of procedure. This directive contradicts with Circular No. 1 of 2018, which is issued by GAFI. The latter, which reflects the legal and regulatory framework for protecting the rights of minority shareholders, stipulates that adopting the system of cumulative voting is optional rather than mandatory, which is in line with Article 74 (Paragraph 2) of the Companies Law. Thus, it is imperative to issue a clear directive to eliminate any ambiguity regarding the voting system.
Industry-Specific Reforms > State Administrative Apparatus
- Hesitation in decision making on the part of officials, for fear of assuming responsibility; this attitude further hampers processes and slows them down, and negatively affects the investment climate in Egypt.
Responsible Entities
Date 6/30/2020
Industry-Specific Reforms > State Administrative Apparatus
- Amend Article 8 bis of the Criminal Procedure Code to read as follows: "For crimes stated under Article 116 bis (a) of the Penal Code, no criminal case may be filed except through the Public Prosecutor or the Attorney General. If the employee is one of the employees of the entities specified in paragraphs (a and b) of Article 119 of the Penal Code, the criminal case may not be filed except with the approval of the competent minister, who the employee falls under his authority, or the approval of the prime minister if the perpetrator of the crime was the minister or his deputy". This amendment will enable the state body where the employee works to exercise their inherent right to approve the initiation of criminal proceedings in crimes of unintentional harm committed by employees falling under their authority.
- Add a new article in Chapter V of Book Two of the Penal Code, to read as follows: "A sentence of imprisonment for not less than a month and not exceeding a year, or a fine of not less than LE 1,000 and not exceeding LE 50,000 shall be imposed on every employee who willfully and without justification refrains from performing work duties which constitute part of his job after it has been proved that they fall within his job competence and within the limits of his discretionary authority, and that the duties are in full compliance with the law and his action resulted in obstructing the execution of any decree, issuing a license, concluding contracts or agreements, or any other measures that impede any investments; the punishment will be imposed if refraining from carrying out the duties is intended to harm the interest of a natural, a legal person, or public interest.”
- Amending the text of Article 115 of the Penal Code, to read as follows: “Every public employee who obtained or tried to obtain for himself, or obtained or tried to obtain for others, without a right, a profit or gain connected with the carrying out any duty of his office, if this was based on a previous agreement between them, shall be punished by imprisonment at hard labor; and shall be punished with imprisonment or a fine in other cases.” Amending the article by adding “…. he shall be punished with imprisonment or a fine in other cases” closes a loophole, which allowed public employees to escape punishment if it was not possible to prove that there was a pre-arranged agreement between the parties.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date 6/30/2020