CAIRO: Interim President Adly Mansour has approved a law submitted by the Cabinet to ban appeals from a third party against contracts between the state and investors, Youm7 reported Wednesday.
Minister of Industry, Foreign Trade and Investment Mounir Fakhry Abdel Nour said the ministry created the law in the last few weeks to meet the demands of international investors to amend governmental contracting in Egypt, during a phone call with the CBC satellite channel.
Abdel Nour said he aims to raise investments in Egypt to 30 percent of the national income, along with the savings rate, which would in turn increase the amount of investments.
In response, Ziad al-Elamy, ex-parliamentary member and human rights lawyer, said the new law prohibits citizens’ rights to litigate against corrupt contracts, and violates the constitution.
Elamy said the Supreme Administrative Court previously abolished 11 governmental contracts for corruption, adding that some factories have been sold for a lower price than the base price of their lands. Elamy also claimed the new law is actually based on a suggestion presented by Abdullah Bin-Mahfouz, head of the Saudi Arabia-Egyptian Business Council, in February.
Karam Abdel Halem, leading member of the Movement of Public Pressure, rejected the new law in a statement released April 15, and demanded the government issue fair laws in favor of workers instead of immunizing investors and their contracts, Al-Balad reported.
Economic expert Hamdy Abdel Azem said the new law is the first step toward state corruption, adding that the government will protect its deals with foreign investors at the expense of citizens, Vetogate reported.
Additional reporting by Ahmed Abdel Rahman.