Procurement Risk:
Critical
Score:
8/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This is indicator is not assigned a score in the GDI. According to our sources, no procurement law specifically targets the military and defence…
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There no legal framework for defense and military procurement,.
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As there is no legal framework for defense and military procurement, this sub-indicator is marked Not Applicable.
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Q58
0/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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According to our sources, the process of procurement at all levels is, not disclosed internally other than the committee or the commander in charge…
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Several legal provisions allow and even encourage the secrecy of defence procurements. Examples include the Public Authorities’ Contracts Law no. 182 (2018) which allows…
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If they do exist, the policies or procedures for the implementation process of the procurement cycle are not known. (1), (2), (3), (4).
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Q59
8/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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Law no. 182 (2018), provides wide discretionary powers to the MoD and the MMP to make procurement processes closed, limited or by direct order…
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According to our sources, there is no active oversight mechanism within the MoD. The financial and auditing units have no real power or authority…
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Due to the broad exceptions granted to the MoD and the MMP, disclosing information about the procurement process in the defence sector becomes almost…
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It is difficult to determine whether there is a strategic defence review or white paper that includes forward planning for potential defence purchases. Interviewee…
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There are several legal provisions the allow and even encourage the secrecy of defence purchases. Examples are the Public Authorities Contracts’ Law which allows…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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In the Law no. 182 of 2018, which is the main legal texts that regulate public procurement in all sectors, there is no mention…
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This sub-indicator is marked Not Applicable because there is strong evidence that these standards are not consistently implemented, especially when it comes to the…
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Q63
0/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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According to our sources, defence strategy and policy is not available to the public. However, they have confirmed that procurement requirements are not derived…
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There are no particular laws for defence procurements, therefore what applies to the general government should apply to the defence sector, the wide exceptions…
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Defence policies and strategies are never made public in Egypt; therefore, it is impossible to assess whether purchases are planned and/or included in a…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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According to our sources, the majority of military procurement happens through closed competition or a single-sourced contractor. In the majority of the procurement process,…
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The Public Authorities’ Contracts Law no 182 of 2018 (Article 77) gives the power to the MoD and the MMP to single-source their procurement…
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Q65
6/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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Article 26 of the Public Authorities’ Contracts Law no. 182 (2018) and Article 136 of its executive regulations state that no employee in the…
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It is difficult to assess whether there is an audit trail due to a lack of information, but even if there was an audit…
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According to our source, there is no transparency in Tender boards. The boards, even if they advertised publicly, in many cases, the source is…
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There are wide exceptions granted to the defence sector provided for in the law, making external verification of tender specifications nearly impossible. For example,…
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Q66
25/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Law no. 182 of 2018 addresses collusion and the more general themes of “corruption” and “manipulation” in winning contracts (Article 38) as well as…
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Generally, procurement officers have no authority to bar any company or contractor, that power lies in the hand of senior officers and management within…
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As much as judicial independence is possible in Egypt, the State Council is known to be one of the relatively independent entities. All decision…
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There are no training programs that allow procurement officers or financial officers to spot the collision or corruption risks within the process of procurement…
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Contract Delivery and In-Service Support
Q67
25/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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There are some formal policies to ensure that contractors meet their obligations for delivery, but not necessarily reporting. For example, Article 51 of Public…
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On the government’s tenders portal (1), the flow of information regarding tenders stops once the tender is awarded. Therefore, it is difficult to access…
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There is no evidence in the relevant laws or media platforms of the existence of post-award reporting by procurement officials. According to our sources,…
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According to Article 6 of the Tenders Law Executive Regulations and Article 85 of the Law no. 182 of 2018, each procurement department should…
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Q68
33/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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According to Article 5 of the Public Authorities’ Contracts law, there is a special unit in the Ministry of Finance entrusted with receiving complaints…
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Options for contractors to complain are through either regular judiciary arbitration or the less formal complaints mechanisms. Court cases in Egypt are usually slow,…
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Given the current political climate characterized by military authoritarianism (1), it is very likely that in procurement for the defence sector, companies fear retaliation…
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The Public Authorities’ Contracts Law states that a contractor who wins a contract through means of manipulation or corruption should be debarred and removed…
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This sub-indicator is marked Not Applicable because no evidence suggests that suppliers have been sanctioned, or prosecuted in corruption cases even in the face…
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This sub-indicator is marked Not Applicable because there is evidence that sanction(s) (debarring) do take place (1). However, because the published decisions do not…
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Offset Contracts
Q70
25/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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According to our sources, there are no policies or procedures that outline how offset contracts should be handled (monitoring and documentation). As most of…
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The process of off-set contracts is confidential and secret. They are mostly non-transparent and not justified (1), (2), (3). According to Law no. 118…
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According to Article 86 of Law no. 182 (2018), the public agency must conduct an appraisal of contractors it has dealt with at the…
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There are no known cases of sanctions against an off-set contactor. Most of the contractors are arms-exporting nations with strategic relations with Egypt, or…
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Offset contracts in the defence sector, just like normal contracts, are most likely to be single-sourced and secret according to legal exemptions provided in…
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Agents / Brokers
Q73
25/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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The use of agents and intermediaries in defence procurement is generally banned in Egypt (1), However, despite the ban on the use of commercial…
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Since defence procurement is often single-sourced and secret, it is impossible to know whether the ban on commercial agents is effectively enforced. There is…
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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The principal aspects of the financing package surrounding major arms deals, (e.g. payment timelines, interest rates, commercial loans or export credit agreements) are never…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This is indicator is not assigned a score in the GDI. Military acquisitions are in part determined by the political influence of the selling…
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This is indicator is not assigned a score in the GDI. According to our sources, there is no justification in the meaning of extensive…
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This is indicator is not assigned a score in the GDI. According to our sources, there is no domestic political pressure when it comes…
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