Financial Risk:
Critical
Score:
1/100
Asset Disposals
Q24
0/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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According to our sources, there are no formal policies or procedures for asset disposal. Indeed, each branch of the armed forces manages the disposal…
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Law no. 14 (1967) prohibits the publishing or broadcasting of any information or news about the armed forces: its formations, movements, armaments and personnel,…
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No information is published about asset disposal. It is not required by the law (1), (2), (3). The publishing of any information or news…
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Q25
0/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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The two bodies that might have some formal oversight powers over asset disposal are the parliament and the CAA. This Parliament has very limited…
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According to our sources, both the executive (which is mostly made up of former military officers) and the military undermines the work of the…
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According to our sources, there are no such reports available internally in the MoD in principles. Therefore, the public will not have reports that…
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Secret Budgets
Q26
0/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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The financial records of secret items are not included in the budget (1), (2), (3). According to a recent interview with the deputy minister…
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Q27
0/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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The legislature is not provided with the information; it is only provided with the topline total figure (1), (2), (3), (4). Only representatives of…
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Q28
0/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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According to our sources, the Parliament does not discuss defence and intelligence reports. The Parliament has no access to reports on secret items or…
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This sub-indicator has been marked Not Applicable because, according to our sources, there are no audit reports provided to the Parliament; therefore, there are…
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Q29
0/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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According to our sources, off-budget military expenditure is common in Egypt. The so-called “special funds” sanadi’ khasa or extrabudgetary funds are pervasive and considered…
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According to our sources, off-budget military expenditures are not registered in the budget. The law does not require the army or intelligence to record…
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According to our sources, there are enormous off-budget military expenditures and revenues, but it is not clear whether they involve legitimate or illicit economic…
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There is no legislation to regulate access to state information in general or defence and security information in particular (1).
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This indicator is not assigned a score in the GDI. There is no clear legal framework for the classification of information. However, there are…
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Most information related to the defence sector, including investigations and trials, is considered “military secret” and its dissemination is severely punished by law (1).
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Q31
13/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
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Egyptian Defence institutions have extensive commercial activities (1), (2), (3), (4). The estimates vary widely due to its opaque nature between 2% and 40%…
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In general, financial and economic revenues and operations are not transparent (1), (2), (3), (4). The businesses are known, but their profits, operations, finances…
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Military-owned Businesses
Q32
0/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
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Although the CAA has a right to scrutinize all public enterprises, the military institutions and their enterprises have never been and they were expected…
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According to our sources, there are no auditing reports that contain information about the military-owned businesses. Despite there are some reports about the general…
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Illegal Private Enterprise
Q33
0/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
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No law prohibits defence and security institutions from establishing private commercial enterprises. It is reported that the Ministry of Military Production oversees about 20…
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Private enterprises by the military are very common and range from construction to fish farms, to a holiday resort. Due to the non-disclosure policies…
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Actual Military Spending
Q77
0/100
Is comprehensive data on actual spending on defence published during the budget year?
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According to our sources, the data on the actual spend of the military are never published. In all the published financial data from the…
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This sub-indicator is marked Not Applicable because the Egyptian constitution provides for the secrecy of the armed forces budget by stating that only a…
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This sub-indicator is marked Not Applicable because the Egyptian constitution provides for the secrecy of the armed forces budget by stating that only a…
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This sub-indicator is marked Not Applicable because the Egyptian constitution provides for the secrecy of the armed forces budget by stating that only a…
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