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The Institute for Ethics and Economic
Policy (IEEP) |
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Catching up with
high-profile corruption. The recent spate of high-profile corruption
scandals, combined with a rise in MP accusations against cabinet ministers,
has prompted three MPs to submit draft laws to the People's Assembly aimed at
clamping down on government corruption. The current law regulating legal
proceedings against cabinet ministers suspected of illegal activity dates
back to the 1958-1961 Egypt-Syria union. (Al-Ahram
Weekly 05 Mar 2004 summary by Sherldine Tomlinson). COURT SENTENCES 10 TO PRISON FOR GRAFT AND WASTING &230M. OF PUBLIC MONEY 10 men, most of them are public servants, received sentences ranging from 3 years in prison to 18 years with hard labor on charge of involving graft and misuse of public funds which caused a state foundry lost 1.4bn. Egyptian pounds – the largest amount of state funds ever known to be lost through malfeasance. Among which found Osama Abdel Wahah, the former chairman of Nasr Company for Metal Casting, received 15 years in jail with hard labor for graft and wasting state money. Two foreigners, Reinhardt Heinrich, a German businessman, and Halim Bart, a Lebanese trader, beside 15 year sentences with labor for offering bribes and selling poor equipment to the foundry at exorbitant prices, were ordered to close their businesses in Egypt. Egypt was ranked 54th out of 91 countries on a 2001 corruption index published by TI. (AP, 20 Jun 2003, summary by Hanh Vu).
NEWSPAPER PUBLISHER JAILED FOR 10 YEARS IN BRIBERY CASE Publisher and a journalist of Al-Watan Al-Arabi – a newspaper well known for exposing corruption cases turned out to be persons of corruption when they were found to take bribes from businessmen to shield those people from criticism. 10 years in jail and a fine worth 3,500 dollars was the sentence to Mohammed Abdel Al, publisher of the paper who also headed a tiny opposition Social Justice party and 5 years in prison handed to the journalist. The case is one of a string of high-profile corruption trials publicized here in recent months which has included trials of former ministers and government officials. Last week an Egyptian court handed sentences ranging from two years in jail to life with hard labor to 8 government officials and the wife of one of them after convicting them of taking bribes. (Arab Times 26 May 2003, summary by Hanh Vu).
Two Egyptian lawmakers sentenced to
five and 15 years jail in corruption case. According to court officials in Egypt, two lawmakers were sentenced to
five and 15 years jail for falsifying ownership of a land parcel by forging
property deeds. Both are members of the ruling National Democratic Party,
were found guilty of forging contracts to claim ownership of state-owned
land. Some 11 other defendants, including lawyers, contractors and land registry
employees, were also sentenced to between five and 15 years in jail. The Egyptian government has been waging a
campaign against corruption, mainly within the civil service ranks, to
address foreign investor’s concerns about difficulties in conducting business
in Egypt. (Yahoo News (AP), February 10, 2003, summary
by Sherldine Tomlinson). Bank of Cairo’s director arrested for corruption Egyptian
authorities have arrested the former managing director of the Bank of Cairo,
Mohamed Abul Fateh, over a corruption case. The report said he is accused of
giving un-guaranteed loan facilities totalling 1.5 billion Egyptian pounds
322 million dollars to four businessmen, three of whom are in jail and one on
the run. International finance bodies regularly criticise Egypt over its
dysfunctional banking sector, particularly the state-owned banks which
account for more than 70 percent of business. (Middle East Online,
January 9, 2003, summary by Sherldine Tomlinson). 21 businessmen lose properties. An Egyptian court has seized the
property of 21 businessmen and two bankers implicated in expediting or
receiving improper loans totalling nearly $170m. The court handed out the
same measure to the managers of two Cairo branches of the semi-public bank who
have been accused of authorising the loans without sufficient guarantees.
International financial institutions have reproached Egyptian authorities for
the country’s ill-functioning banking system, especially state banks which
represent nearly three-quarters of banking activity. (News 24, November 19, 2002 summary by Sherldine Tomlinson). TV HEAD PUNISHED FOR SHOW BRIBE Mohammed al-Wakil, a former head of Egyptian state television news has been sentenced to 18 years of hard labour for corruption and possession of drugs, of which 15 years of hard labour for taking bribe and 3 other years for possessing 8.5 grams of hashish, judicial sources said. It's surprised that the two person involved namely Ahmed al-Hassissi - television producer and university professor and Hani Abdel Latif, another employee of state TV have been acquitted while Fakher Fuad Guendi, a doctor who was charged of bribing Wakil to invite him on his show to publicise his clinic, was sentenced 5 years of hard labour. (AFP, 13 Nov 2002, summary by Hanh Vu).
COURT SENTENCES 31 IN HIGH PROFILE CORRUPTION CASE The case of the loans legislators, senior officials at five national banks provided their clients, which included legislators, with loans with improper guarantees or forged statements of collateral which originally closed in June, 2001 with sentences allegedly to be inaccurate; a maximum of 10 years and many of those charged acquitted, once again was brought to the trial recently due to the order of the Court of Cassation, Egypt´s highest appeal court. This time the main defendant, a parliamentarian and former tourism minister, Tawfik Ismail, received the toughest sentence; 15 years with hard labor; two other former parliamentarians, 15 senior bankers, and prominent businessmen condemned between 5 and 15 years with hard labor and a payback asked amount reaching US$395million. (AP, July 31, 2002, summary by Hanh Vu).
TV NEWS HEAD ACCUSED OF BRIBE. The news director of Egypt’s state-owned television station was
arrested for receiving a bribe to allow a doctor to appear on a popular
program. Mohammed El-Wakil was taken into custody in a sting operation set up
by state security officials and by the Administrative Monitoring Office,
which investigates official impropriety. El-Wakil was taken from his office,
after he received a bribe in exchange for allowing a doctor to appear on
"Good Morning Egypt". Ahmed el-Hasisy and Hani Abdel Latif, two of
the producers of the programme were also detained. El-Hasisy was detained as
he received a bribe of $2,000 from Dr. Mohammed Fathi. Police accompanied
el-Hasisy to El-Wakil’s office and arrested the news director as he was
taking the money from el-Hasisy, police added. The Administrative Monitoring
Office had received a complaint from Fathi that he had been asked to pay the
bribe. (The Washington Post (Associated Press), July
8, 2002, summary by Sherldine Tomlinson).
Cairo, 20 PEOPLE, INCLUDING OFFICIALS OF STATE-RUN COMPANY, REFERRED TO TRIAL IN CORRUPTION CASE. A state-run metal casting company suffered a loss of 1.4 billion Egyptian pounds (dollars 311 million) in a corruption scheme, which allegedly involved wasting and embezzling of public money. Egypt's top prosecutor, Maher Abdel Wahed, referred 20 people that will be tried before a state security court: trade agents, businessmen but mostly officials of the Nasr Company for Metal Casting. (Associated Press, May 9, 2002, summary by Pavlidis George). Cairo, FORMER MINISTER, OFFICIALS JAILED. An Egyptian court has ordered former minister Mohieddin al-Gharib and five other senior officials to be held in jail. The officials face serious corruption charges. The higher state security court has retracted bail on former finance minister Mohieddin al-Gharib and the other officials. They will be placed in jail until the end of the trial. The officials, among which is also former head of Egyptian customs, Ali Taha Ali, are accused of embezzling around seven million dollars between November 1999 and January 2000. (Source: Africa Online, November 6, 2001, summary by Pavlidis George).
Financial Action Task Force (FATF), international body against money laundering has ADDED this country from its blacklist.(Wall St. J. June 22, 2001, p. A3).
UNIT GUILTY IN BID RIGGING MUST PAY $53 MILLION FINE The Antitrust division of the Justice Department has prosecuted the Middle East and Africa Unit of ABB Ltd., a Swiss company. An investigation revealed the firm conspired to rig bids for a construction contract in Egypt from the U.S. government. ABB Ltd. Admitted to the charge, was fined $53 million, and will pay a $10 million restitution. (FT, Apr 13, 2001, summary by Marg Reynolds).
HUMAN RIGHTS ACTIVIST STANDS TRIAL FOR BRIBERY. Saad
Eddine Ibrahim, 61, a leading human rights activist and 27 others have been
charged by the State Security prosecutors with accepting foreign money
without government approval, issuing false statements about the country's
internal situation and planning to bribe civil servants. Police officials,
speaking on customary condition of anonymity, said that Ibrahim and the
others were planning to bribe employees at the state-run radio and television
in order to broadcast programs about the Ibn Khaldoun Center, a Cairo think
tank run by Ibrahim. Ibrahim, the officials said, received 261,000 euros from
the European Union without getting permission from authorities, he embezzled
the money for himself, and he forged ballots for a documentary film about
elections that would have tarnished Egypt´s image. The trial date hasn't yet
been set but Ibrahim faces life imprisonment. (Source: Ananova, September 24,
2000, summary by Pavlidis George). Germany/Egypt:
Holzmann fined in bid-rigging case (construction industry) (Engineering
News-Record, 28.8.00, http://www.enr.com/news/enrbl253.asp) Headline,
25-AUGUST-2000, Link may not work after a few days. The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Egypt in the “Mostly Unfree” category with a rank of 121 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9. |
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Design:
Theo den Brinker |
Copyright:
Hrishikesh D. Vinod 2000 |
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