A recent investigation by the Administrative Prosecutor’s Office revealed serious administrative and financial failures within the General Directorate of Cleanliness and Beautification of Giza Governorate, resulting in gross violations and unprecedented negligence resulting in the Egyptian state suffering losses of 13 million euros to foreign companies.
After an investigation revealed a series of violations that weakened the Egyptian state’s legal status and triggered international arbitration disputes with foreign partner companies, the head of the Administrative Prosecutor’s Office, Counselor Mohamed El Shenawy, ordered the submission of seven officials of the authority, including the former director of contract procurement and the former director of finance and administration, to a disciplinary tribunal.
The problem began with a comprehensive public cleaning project that was assigned to a foreign company to carry out work on 110 acres of land in the “Shabramand” area. The investigation revealed that the land was within the scope of the public antiquities grant, and that the allocation of the land to the project was illegal from the beginning.
But the mistakes didn’t end there. The authorities failed to specify accurate technical specifications and failed to comply with the financial terms of the contract, resulting in delays in document payments and illegal discounts. The problem worsened, forcing the foreign partner to resort to international arbitration and claim compensation worth 170 million euros.
Thanks to the efforts of the state through the Ministerial Committee for the Settlement of Investment Contract Disputes, an arbitration settlement was reached in which the company covered all the arbitration costs, covering 13 million euros in one-year installments.
Who is responsible for the loss?
The seven employees who went to trial are:
Director of Contracts and Procurement Former Director of Finance and Administration Under Secretary of Finance and Administration Former Director of Project Management Former Director of Finance Former Director of Authority Records 2 people
The Egyptian public prosecutor’s office explained that the investigation revealed deliberate negligence and laziness during the work, which caused the suspension of the project and caused serious damage to the state.
The prosecutor’s influence and orders centered on:
Informs the Council of Ministers to take necessary measures to protect public lands. The former law department representative will be referred for disciplinary investigation. Initiate an independent investigation to confirm the validity of legal proceedings related to the project.
The case revealed wide disparities in the administrative performance of government agencies and raised questions about the effectiveness of oversight of major projects in which the state participates with foreign companies.
