Procurement Risk:

Critical

Score:

8/100

Government Policy

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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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Legal framework Score: NS / 100
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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Corruption risks Score: 0 / 100
There no legal framework for defense and military procurement,.
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Effectiveness Score: NA / 100
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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Formal procedures Score: 0 / 100
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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Transparency Score: 0 / 100
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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Implementation Score: 0 / 100
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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Independence Score: 25 / 100
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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Effectiveness Score: 0 / 100
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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Transparency Score: 0 / 100
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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Q60 0/100

Are potential defence purchases made public?

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Policies Score: 0 / 100
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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Notice of planned purchases Score: 0 / 100
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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Q61 0/100

Are actual defence purchases made public?

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Comprehensiveness Score: 0 / 100
Information about actual defence purchases is not made public on a routine basis. As discussed in Q60, there are several legal provisions the allow…
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Accessible data Score: 0 / 100
As explained in 61A, data about defence purchases is not published.
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Capability Gap and Requirements Definition

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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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Formal policies Score: 0 / 100
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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Consistent implementation Score: NA / 100
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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Procurement requirements Score: 0 / 100
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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Scrutiny Score: 0 / 100
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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Purchases Score: 0 / 100
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

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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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Open competition Score: 0 / 100
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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Scrutiny of single/restricted competition procedures Score: 0 / 100
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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Conflicts of interest Score: 25 / 100
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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Audit Trail Score: 0 / 100
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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Transparency Score: 0 / 100
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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Scrutiny Score: 0 / 100
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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Legal framework Score: 50 / 100
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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Sanctions Score: 25 / 100
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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Enforcement Score: 25 / 100
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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Training Score: 0 / 100
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

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Q67 25/100

Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?

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Reporting policies & procedures Score: 50 / 100
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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Transparency Score: 0 / 100
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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Monitoring Score: 0 / 100
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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Enforcement Score: 50 / 100
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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Complaints mechanisms Score: 100 / 100
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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Effectiveness and Accessibility Score: 0 / 100
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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Retaliation Score: 0 / 100
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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Q69 0/100

What sanctions are used to punish the corrupt activities of a supplier?

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Sanctions Score: 0 / 100
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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Undue influence Score: NA / 100
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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Application of sanctions Score: NA / 100
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

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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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Legal framework Score: 50 / 100
Articles 66 to 68 of the Implementation Rules Document of the Import and Export Law no. 118 of 1975 permit offset trade (1), (2).
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Due diligence Score: 0 / 100
There is no clause or provision in the Tenders Law or its executive regulations that address or impose anti-corruption due diligence on contractors and…
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Q71 0/100

How does the government monitor offset contracts?

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Policies & procedures Score: 0 / 100
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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Transparency Score: 0 / 100
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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Monitoring Score: 0 / 100
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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Enforcement Score: 0 / 100
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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Q72 0/100

What level of competition are offset contracts subject to?

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Score: 0 / 100
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

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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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Policies Score: 50 / 100
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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Enforcement Score: 0 / 100
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

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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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Score: 0 / 100
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

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Q75 NS/100

How common is it for defence acquisition decisions to be based on political influence by selling nations?

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Prevalence: selling nations Score: NS / 100
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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Justification Score: NS / 100
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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Prevalence: domestic pressures Score: NS / 100
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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