Watchdog: Corruption on the rise in Egypt

Watchdog Transparency International has called for the transformation of Egypt's electoral system in order for the country to rid itself of 'rising' corruption.
The Germany-based non-governmental organization wrote in a Saturday report that Egypt has been losing a fight against corruption and efforts were needed to counter the abuse of power driven by 'widespread conflict of interest, political interference, weak enforcement of laws and a lack of access to public information,' Reuters quoted the report as saying.
The report also urged an overhaul of the country's 'ineffective voter registration system' before Egypt's 2010 parliamentary elections and its presidential vote in 2011.
Egypt's opposition parties have already made an attempt to reform the elections system.
"Without serious reform of the wage system corruption is likely to increase," the watchdog said, adding, "Corruption is likely to take place when wages cannot cover basic living expenses."
It also called for more transparency of political issues and their media coverage. 


Snapshot of the Egypt Country Profile

With a key focus on market reforms and establishment of free-trade and industrial zones, Egypt has attracted an unprecedented high amount of foreign direct investment and achieved high GDP growth in recent years. However, companies wishing to invest in the country should be aware that several sources identify pervasive corruption as a major obstacle to doing business. Observers agree that corruption in Egypt is pervasive and that the use of wasta ('mediation' or 'influence' in Arabic) is essential for doing business.
Positive developments in relation to corruption and investment:
  • Egypt has dramatically improved its performance in a number of regulatory areas, including starting a company and trading across borders, areas in which Egypt performs impressively compared to regional averages. However, corruption and bribery are reportedly still common when companies deal with public services, customs and taxes, public utilities, and procurement.
  • Although facilitation payments are often still required, Egypt has improved its performance in relation to issuing licences, permits and utility connections.
Risks of corruption:
  • Companies are likely to encounter corruption in meetings with public officials. Officials in various government departments are known for bribery, embezzlement and tampering with official documents.
  • Corruption is particularly prevalent in public procurement.
  • Companies should know that corruption is not uncommon when dealing with the customs administration, and excise laws are not always enforced uniformly and without discrimination.

 Details on Wikipedia about Hosni Mubarak, click here


Corruption Perception Index of Egypt: 

2002: 3.45

2009: 2.80

Rank #111 best of 180  

10 = very okay, 0 = total corrupt

 


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