Administrative Control Authority... The State’s Hand to Eradicate the Roots of Corruption
In a large building in the Nasr City area of Cairo, its walls adorned with the Egyptian flag, lies the headquarters of the "Administrative Control Authority," with branches extending across all Egyptian governorates. Its history spans more than half a century, dating back to when the late President Gamal Abdel Nasser envisioned establishing an agency to protect the public sector from corruption. In 1964, he issued a decree to establish the Administrative Control Authority as an independent supervisory body affiliated with the Prime Minister’s Office.
The authority was initially formed by twenty officers under the name "Government Administration Monitoring Authority," with Major General Kamal Al-Ghur, an intelligence officer, appointed as its first head. The primary goal of the Administrative Control Authority was to combat corruption and investigate the causes of shortcomings that hindered the workflow. The scope of the authority’s work and its administrative structure expanded later through two laws issued in 1964 and 1968.
Mandates of the Administrative Control Authority
According to its establishing Law No. 54 of 1964, amended by Law No. 207 of 2017:
• Investigate and examine the causes of shortcomings in work and production, and propose ways to avoid them.
• Detect defects in administrative, technical, and financial systems that hinder the smooth functioning of public bodies, and suggest remedies.
• Monitor the implementation of laws and ensure that decisions, regulations, and applicable systems adequately achieve their intended purposes.
• Detect administrative, financial, and technical violations committed by employees during or due to the performance of their duties.
• Detect and apprehend criminal offenses committed by non-employees that target undermining the proper performance of official duties or public service.
• Investigate complaints submitted by citizens regarding violations of laws or negligence in the performance of official duties, and consider their suggestions to improve services, ensure smooth workflow, and expedite completion of tasks.
• Study and analyze complaints or investigative reports published by the press related to negligence, recklessness, mismanagement, or exploitation, as well as media coverage on these issues.
• Provide the Prime Minister, ministers, and governors with any data, information, or studies they request.
New mandates introduced by Law No. 207 of 2017:
• Detect and apprehend crimes aimed at obtaining or attempting to obtain any profit or benefit by exploiting the status of a public employee, debtor, holder of a public office in civil entities, or the name of any civil entity mentioned in Article (4) of this law.
• Crimes related to the regulation of foreign currency operations stipulated by the Central Bank, Banking, and Currency Law No. 194 of 2020, according to its provisions.
• Crimes stipulated in Law No. 5 of 2010 concerning the regulation of human organ transplantation.
• Crimes stipulated in Law No. 64 of 2010 concerning combating human trafficking.
To view the full text of the law, click here
New mandates introduced by Law No. 207 of 2017:
• Detecting and apprehending crimes aimed at obtaining or attempting to obtain any profit or benefit by exploiting the status of a public employee debtor, a holder of a public office in civil entities, or the name of any civil entity stipulated in Article (4) of this law.
To view the full text of the law, click here
• Crimes related to regulating foreign currency operations as stipulated by the Central Bank, Banking, and Currency Law No. 194 of 2020, in accordance with its provisions.
• Crimes stipulated in Law No. 5 of 2010 regarding the regulation of human organ transplantation.
• Crimes stipulated in Law No. 64 of 2010 regarding combating human trafficking.
To view the full text of the law, click here
• Developing and monitoring the implementation of the national strategy to combat corruption in cooperation with other relevant bodies and agencies within the state.
• Cooperation, coordination, and exchange of expertise, documents, and information with oversight bodies in the state and other relevant anti-corruption entities abroad.
• Promoting the values of integrity and transparency and raising public awareness about the dangers of corruption and ways to cooperate to prevent and combat it. The Authority carries out this mission in cooperation with all concerned entities and civil society organizations.
• Monitoring the results of international, regional, and local indicators in the field of corruption prevention and combating, issuing necessary recommendations to avoid any negative outcomes of these indicators, following up on their implementation periodically, and evaluating the performance of those responsible for implementing them.
• Assisting government agencies, public authorities, and the public business sector in investigating senior management employees and candidates for medals and decorations.
• Investigating cases of illicit gains in accordance with the Illicit Gains Law and based on decisions by the Investigation and Examination Committees in the Illicit Gains Department.
• Investigating financial transactions suspected of involving money laundering in coordination and information exchange with the Anti-Money Laundering Unit at the Central Bank.
Scope of the Authority’s Jurisdiction
• Government bodies of the state and their branches.
• Public authorities and the entities affiliated with them.
• The public business sector and companies affiliated with it.
• Public and private associations and private sector entities that carry out public functions.
• All entities in which the state participates in any form.
Crimes within the Authority’s Jurisdiction
The crimes detected by the Authority are divided into two main categories:
First Category:
Crimes that are the original jurisdiction of the Administrative Control Authority, including the following:
• Crimes of aggression against public funds:
• Embezzlement.
• Seizure and facilitation of seizure of public funds.
• Profiteering.
• Damaging public funds, whether intentionally or by negligence.
• Fraud in supply contracts.
• Crimes of trading in public office:
• Bribery.
• Abuse of power.
• Forgery of official documents.
• Crimes of illicit gains.
• Exploiting the status of a public civil employee or a senior leadership position to obtain or attempt to obtain any profit or benefit.
• Crimes related to regulating foreign currency operations.
• Crimes stipulated in Law No. 5 of 2010 concerning the regulation of human organ transplantation.
• Crimes stipulated in Law No. 64 of 2010 concerning combating human trafficking.
Second Category:
Crimes detected in coordination with other authorities, which are responsible for investigating and handling them according to their jurisdiction, including:
• Tax evasion.
• Customs evasion.
• Money laundering crimes.
• Commercial fraud.
• Crimes related to public health.
Out of the Administrative Control Authority’s keenness to create an attractive investment climate, and in implementation of the directives of the President of the Republic, the Central Administration for Investment Support was established to examine all obstacles facing investors, propose solutions, and grant them confidence to work and invest without fear. The damage caused to the state’s public treasury due to deprivation of investment opportunities is no less significant than the damage caused by corruption in its broader sense.
The role of the Administration can be summarized as follows:
• Investigate the shortcomings and deficiencies in the administrative apparatus that hinder investment in general, and propose suggestions to improve the investment environment and climate.
• Examine all complaints received from investors and work on resolving them promptly and accurately, with complaints received via the dedicated email of the Central Administration for Investment Support.
• Effectively cooperate with serious investors to expedite the implementation of their new projects or the expansion of existing ones, and overcome all obstacles and problems they face.
• Monitor all laws and decisions issued by state bodies and study their impact on investment, as well as follow all international indicators related to the Egyptian economy.
• Hold continuous meetings with investors in all fields to discuss and consider their ideas and proposals for developing their projects in line with the state’s objectives.
• Work on maximizing state revenues either by increasing the volume of direct investment or by increasing the volume of Egyptian exports.
• Coordinate with all export councils, support them, and discuss their proposals to remove obstacles that help companies increase their exports with the aim of achieving sustainable development, especially regarding foreign currency earnings.
Key Laws Issued to Support Investment
• Investment Law No. 72 of 2017 and its executive regulations.
• Law No. 15 of 2017 facilitating the procedures for granting industrial licenses.
• Law No. 11 of 2018 regulating restructuring and protective composition from bankruptcy.
• Amendment of the Companies Law No. 159 of 1981 to allow the establishment of single-person companies.
• Unified Tax Procedures Law No. 206 of 2020.
The National Academy for Combating Corruption
Since its establishment by Law No. 54 of 1964, training has been a fundamental and inseparable element of the Administrative Control Authority’s success in combating and preventing corruption generation after generation. In 2017, Law No. 207 amended Law No. 54 of 1964 and established the National Academy for Combating Corruption as an independent entity affiliated with the Administrative Control Authority. This was to reinforce the Authority’s commitment to human resource development by dedicating an administrative body responsible for training and development activities, particularly in the fields of combating corruption, spreading values of integrity and transparency, and other related scientific fields.
A Brief Overview of Major Cases and Issues Handled by the Authority
The Authority faced political pressure during the era of President Anwar Sadat when it opened extensive investigations into a case known as the "Ismat Sadat and Rashad Osman" affair, involving the president’s nephew. This caused displeasure to President Sadat, who decided in 1978 to transfer the Authority’s head, Kamal Al-Ghar, to the specialized national councils. Two years later, in 1980, the Authority was dissolved, its files distributed between the Military Police and State Security Investigations, and many documents and evidence of corruption were shredded. Staff and officers of the Authority were reassigned to other positions, leaving a significant gap in the regulatory oversight landscape.
When former President Hosni Mubarak came to power, he issued a decision in 1982 to reconstitute the Authority. The Authority’s headquarters were moved from Dokki in Giza to its current building in the Golf area of Nasr City. General Mohamed Abdullah was appointed as the head of the Authority, followed by General Ahmed Abdel Rahman, then General Hitler Tantawi in 1996. He was succeeded by former military intelligence director General Mohamed Farid El-Tahami.
The first case the Authority reopened was the case of Ismat Sadat and his children, and their relations with Rashad Osman, which ended with imprisonment and confiscation of their assets.
During the 1980s, the Authority exposed many corruption cases that shook public opinion. The most famous included the Lucy Artein case, which led to the removal of several politicians and senior state officials; the Loans Deputies case; the case of Abdel Wahab El-Habbak, Minister of Industry; and the businessman Tawfiq Abdel Hay’s case, who was accused of importing spoiled poultry.
However, during the second half of Mubarak’s era, corruption levels increased, and obstacles were placed in front of the Authority to undermine its work. This led to increased financial and administrative corruption due to the intertwining of money and power. This growing corruption fueled public anger, culminating in the eruption of the January 25, 2011 revolution.
When the Muslim Brotherhood came to power, they attempted to exploit the Authority to target their opponents and clashed with the Authority’s head, General Mohamed Farid El-Tahami, accusing him of hiding evidence implicating Mubarak in the Presidential Palaces case. This resulted in his dismissal and the appointment of General Mohamed Omar Hiba as the new head.
Despite these challenges, the Authority managed to uncover corruption cases after the January 25 revolution until 2014, recovering nearly 11 billion Egyptian pounds for the state. This exposed Authority members to threats, prompting them to demand legal protection.
During the drafting of the 2014 constitution amendments, provisions were included to guarantee the Authority’s independence for the first time in its history, removing it from the Prime Minister’s authority, even though it is tasked with monitoring the executive authority and state agencies.
When President Sisi came to power, he granted the Authority broad powers to eliminate corruption, which stood as an obstacle to the economic progress plan. Minister Mohamed Erfan Gamal Eldin was appointed head of the Authority from 2015 until 2018, followed by Minister Sherif Eldin Hussein from 2018 to 2020, then Minister Hassan Abdel Shafi Ahmed from 2020 to 2022. Currently, Minister Amr Adel serves as the head of the Authority.
The Authority’s role became clear when its officers arrested Salah Helal, Minister of Agriculture in Ibrahim Mahlab’s government, in Tahrir Square after he resigned from the Prime Minister’s office. He was accused in a major corruption case involving the seizure of state lands.
The Administrative Control Authority expanded its powers in an attempt to control prices and regulate markets. Through its branches in the governorates, it dealt significant blows to the mafia involved in monopolizing essential and strategic goods.
During this period, the Authority focused on exposing the human organ trafficking mafia, which involved doctors, nursing staff, and senior professors in several hospitals and government universities.
Sources:
• Official website of the Administrative Control Authority
• Al-Ahram Newspaper
