Archive for Hosni Mubarak

Abouel Fotouh: Morsy’s performance so far is weak

by admin
January 1st, 2013

Strong Egypt Party chief Abdel Moneim Abouel Fotouh has accused President Mohamed Morsy of intransparency and making hasty decisions.

“President Morsy’s performance is weak. He started his rule with principle of depending on people he trusts rather than experienced people,” Abouel Fotouh told the London-based Al-Sharq Al-Awsat newspaper on Tuesday.

He also claimed that there was an absence of objective standards in selecting ministers for a new Cabinet, and said that a similar lack of standards also characterized the selection process of Prime Minister Hesham Qandil.

Abouel Fotouh, who is a former member at the Muslim Brotherhood's Guidance Bureau, accused the group of “ignoring the preaching and getting involved in competitions. It turned to a political adversary and a perpetrator of the current dangerous state of polarization in Egypt.”

He added that Morsy's emphasis on dialogue, economic recovery, social justice and judicial independence require action and not just talk.

Additionally, Abouel Fotouh decried Egyptian foreign policy as unchanged since the regime of Hosni Mubarak, describing it as reactive rather than proactive. He warned opposition forces not to associate with remnants from Mubarak's regime, and to instead revise their political discourse and present alternatives.

He also condemned recent attacks by Islamists against media and pop culture figures, and warned that political mistakes had resulted in anger against Islamist political forces in many Arab countries.

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Categories Egypt, Egypt Top Stories
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Egypt starts currency auctions, says reserves critical

by admin
December 29th, 2012

Egypt's central bank introduced a new auction system for buying and selling US dollars to help conserve foreign reserves, which it said had reached a critical level.

Political turmoil over the last month has prompted a rush by investors and ordinary citizens to switch their Egyptian pounds into foreign currency on concerns the government might devalue or bring in capital controls. 

The central bank has spent more than US$20 billion in foreign reserves to support the pound since a popular uprising toppled Hosni Mubarak in early 2011 as turmoil has chased away tourists and foreign investors.

Reserves fell by $448 million in November to $15.04 billion, enough to cover barely three months of imports, and bankers said the rush to buy dollars was certain to have drained foreign reserves even further in December. The bank is expected to report December figures in the first week of January.

"The current level of foreign currency reserves represents the minimum and critical limit," the bank said on its website on Saturday.

"This requires their being conserved for critical uses, as represented in fulfilling foreign debt obligations to preserve Egypt's reputation in international financial markets and to cover imports of strategic commodities," it added.

The new system will take effect as of Sunday, 30 December, and run alongside and not affect the current interbank currency market, the bank said.

It said the auctions would be held regularly and that banks would be asked to submit bids but gave few other details.

Egypt said it would continue to meet installments and interest payments on its foreign debt and allow transfers by foreigners who had invested on the stock exchange.

The central bank said the banking system's finances remained "strong and secure" but called on Egyptians to "rationalize their use" of foreign currency and not to speculate.

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Categories Egypt Economy
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Accusations against ElBaradei, Sabbahi and Moussa dropped

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December 29th, 2012

Al-Asqalani, who had filed a report accusing Constitution Party head Mohamed ElBaradei, Popular Current head Hamdeen Sabbahi and former presidential candidate Amr Moussa of attempting to overthrow the regime, has withdrawn his complaint.

Asqalani, a member of the Freedoms Committee at the Lawyers Syndicate, said that he had filed the complaint at the time of the Ettehadeya Presidential Palace clashes that saw several people killed.

He said it was a dark time when Egyptian blood was being shed, and suggested that “everything that has happened may be part of a conspiracy against the country.” ‫

The plaintiff stressed that he respects all national forces who seek to uphold the principles of democracy, as he respects President Mohamed Morsy who himself recognizes the opposition and freedom of opinion.

There are four reasons Asqalani withdrew his complaint against the leading members of the National Salvation Front, Asqalani explained, pointing first to freedom of opinion and expression. Secondly, he said, the opposition had played a role in toppling the dictatorship of Hosni Mubarak, and thirdly, that they had helped make President Mohamed Morsy the first legitimate president elected in Egypt's ancient and modern history. Finally, Asqalani said, the opposition represent a safety valve to activate democracy in the new Egypt.

Edited translation from MENA

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Categories Egypt, Egypt Top Stories
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Travel ban on Mubarak regime figures

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December 29th, 2012

Prosecutor General Talaat Abdallah issued a decree to ban a number of figures of the former Hosni Mubarak regime facing charges of corruption from leaving the country.

The list of figures includes former Parliamentary and Legal Affairs Minister Moufeed Shehab, journalist Abdallah Kamal and former Health Minister Hatem al-Gabaly.

A statement issued by the Prosecutor General's office said on Saturday that the decision to ban the figures from travel was due to charges in pending cases related to the exploitation of influence and profiteering. Most of the figures are symbols of the former regime.

Edited translation from Al-Masry Al-Youm

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Egypt pound falls, rising fears of devaluation

by admin
December 26th, 2012

The Egyptian pound fell to its weakest in almost eight years as concerns the government might devalue or place restrictions on currency movements prompted citizens to pile into dollars, forex traders said.

Renewed political strife over the past month has thrown doubt on the ability of the government to push through a programme of spending cuts and tax hikes.

That is seen as a prerequisite for a $4.8 billion International Monetary Fund loan that Egypt needs to tackle a financial crisis.

The turbulence prompted credit agency Standard & Poor's to downgrade the country's long-term credit rating on Monday and warn of a possible further cut.

On Tuesday the government made it illegal for travellers to carry more than $10,000 out of the country.

"All customers are rushing to buy dollars after the downgrading," said a dealer at a Cairo-based bank. "We'll have to wait to see how the market will operate with the U.S. dollar, because as you know there is a rush at the moment."

The pound was bid as low as 6.1775 to the dollar compared to 6.169 on Tuesday. This was its weakest in almost eight years and close to its all-time low of 6.26 hit on Oct. 14, 2004.

Dealers said there were signs the central bank was selling dollars on Wednesday to keep the currency from weakening further. Trading was exceptionally heavy, boosted by orders left over from Tuesday, which was a bank holiday in Europe.

The central bank has spent more than $20 billion of its foreign reserves to support the pound since the popular uprising that toppled Hosni Mubarak in early 2011.

Reserves fell by $448 million in November and stand at $15 billion, equal to only about three months of imports.

"Definitely there is pressure on the pound," said a dealer at a second bank. "If foreign reserves are much lower at the end of the month the central bank will have to lower the pound."

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Categories Egypt Economy
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Egypt limits travelers leaving country to US$10,000 in cash

by admin
December 25th, 2012

Egypt has banned travelers from carrying more than US$10,000 in foreign currency cash in or out of the country, as officials worry over pressure on its pound currency and a rush by Egyptians to withdraw their savings from banks.

Political turmoil over the past month has raised fears among ordinary citizens that the government — which has pushed back talks to seal IMF funding till January — may not be able to get its fragile finances under control.

The Central Bank has spent more than $20 billion of its foreign reserves to support the pound since the popular uprising that toppled Hosni Mubarak in early 2011. It now has only $15 billion, which is equal to only about three months of imports cover.

Presidential spokesperson Yasser Ali on Tuesday confirmed the government decision, which includes US dollars or their equivalent in other foreign currencies. The decision also forbids sending cash through the mail.

The decision prohibits all travelers from "bringing foreign currency into the country or carrying it out to only $10,000."

Any funds over $10,000 must be transferred electronically, Ali added.

Previously, travelers were simply required to declare any amounts above $10,000 to authorities on their way in or out.

Bankers say depositors had been withdrawing greater amounts of cash from their accounts since President Mohamed Morsy issued a constitutional declaration last month that expanded his powers and threw the country into a political crisis.

The crisis has complicated a $4.8 billion loan the government is seeking from the International Monetary Fund.

The IMF had been due to approve the loan on 19 December, but the government asked for a delay after it cancelled a series of unpopular austerity measures deemed essential for its approval.

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Categories Egypt Economy
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Rivals campaign on eve of referendum

by admin
December 21st, 2012

Last-minute campaigning was taking place on Friday ahead of the final round of a referendum on a new, Islamist-backed constitution that has plunged the country into crisis.

The draft charter is expected to be adopted in Saturday's plebiscite, following a first-round last weekend that showed 57 percent support, according to unofficial tallies.

But analysts warned the vote would not put a halt to the month-long crisis pitting President Mohamed Morsy and his Islamist camp against the broad, secular-leaning opposition.

The conflict has sparked weeks of demonstrations and several violent clashes, including ones outside Morsy's presidential palace on 5 December that killed at least eight people and wounded hundreds.

Egypt's powerful military has deployed tanks around the palace and provided 120,000 troops to help maintain security during the referendum, but it is trying to stay above the fray.

The judicial situation around and beyond the vote has also become clouded.

Many judges are refusing to oversee the referendum, prompting Morsy to split the vote over a week.

And the country's chief prosecutor, Taalat Abdallah, this week said he was stepping down after protests by hundreds of prosecutors — but on Thursday retracted his resignation.

Morsy had appointed Abdallah a month ago in one of his first decisions after giving himself near-absolute powers, a move that triggered the protests and united a previously disparate opposition.

The unrest forced the president to rescind the decree, but he kept Abdallah in his post.

Economically, the crisis has knocked the legs out from under Egypt, which is winded since the early 2011 revolution that ousted the 30-year autocratic regime of Hosni Mubarak.

The International Monetary Fund has put on hold a US$4.8 billion loan Egypt needs to stave off a currency collapse.

Germany has indefinitely postponed a plan to forgive $316 million of Egypt's debt, after Development Minister Dirk Niebel reportedly said "there is the danger that the dictatorial system of ousted president Mubarak is returning."

The head of the National Salvation Front opposition coalition, former UN atomic energy agency chief Mohamed ElBaradei, warned in an online video posted overnight that "currently, the country is on the verge of bankruptcy."

He said "a solution is still possible," as long as Morsy was prepared for "sincere dialogue" and allowed a whole new constitution to be drafted through a more inclusive process.

Supporters of both sides have taken to the streets to sway voters to their side of the debate.

In Giza, a southwestern Cairo district that will vote on Saturday, an opposition campaign volunteer who give his first name as Maher said he pointed out to passersby "who remains committed to the revolution and who betrayed it" —  implying that Morsy's Muslim Brotherhood had let down the country.

A pro-constitution campaigner in the same area, Abdallah Hassan, said his counter pitch was to inform people of "the benefits that will come out of this constitution by voting 'yes'," principally stability after so many months of turmoil.

Campaigning was to step up later Friday, after traditional weekly Muslim prayers.

Observers said that even if the draft charter was adopted as expected the political confrontation would drag on.

"Everything suggests the vote will go the way the Muslim Brotherhood wants …. But the misleading conclusion it will take away is that there is an overwhelming victory allowing it to continue on its chosen path," Hassan Nafaa, an analyst and commentator, said in Al-Masry Al-Youm.

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Categories Egypt, Egypt Top Stories
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Russia may ease Muslim Brotherhood ban to boost Egypt ties

by admin
December 19th, 2012

MOSCOW — Russia may ease restrictions on the Muslim Brotherhood soon to improve relations with Egypt and rebuild influence lost during the Arab Spring revolutions, diplomatic sources say.

The election of President Mohamed Morsy, propelled to power by the Islamist group, offers President Vladimir Putin a chance to improve relations with Cairo that were strained during the long rule of Hosni Mubarak, who was ousted in 2011.

Russia's Supreme Court banned the Muslim Brotherhood from operating in Russia in 2003, describing it as a terrorist organization.

But Moscow is now trying to beef up ties with Egypt, partly to offset some of the influence it has lost in the Arab world in the past two years, particularly in countries such as Libya and Syria that have been recipients of Russian arms.

Easing restrictions on the Muslim Brotherhood would follow a similar move by the United States, which tweaked its ban on formal contacts with the Islamist group, banned under Mubarak, early in 2012. Morsy is expected to visit Washington in 2013 for the first time since his election in June.

Western diplomatic sources say Morsy also accepted an invitation to visit Russia when Foreign Minister Sergei Lavrov visited Egypt during a Middle East tour last month.

"The visit is expected close to the end of the first quarter in 2013. The Brotherhood being on the list remains the problem and Lavrov is said to have given assurances that they will deal with that," one of the sources said.

Russia has in the past accused the Muslim Brotherhood of supporting rebels who want to create an Islamist state in Russia's mainly Muslim North Caucasus.

The Kremlin is still struggling to contain the Islamist insurgency, which Putin has warned could fuel violence in other regions closer to the capital.

But during his trip to Cairo, Lavrov endorsed an initiative by Morsy to resolve the conflict in Syria and political analysts say Moscow appears to be looking for ways to engage more with Egypt, a popular holiday destination for Russians as well as being a regional power.

Better ties?

"As far as I know, Minister Lavrov wants to 'delist' it [the Muslim Brotherhood]," said Alexei Grishin, head of the Religion & Society think tank who used to be a presidential adviser on Islam.

"Any fresh decision by the Supreme Court would be a very lengthy procedure, so maybe what can be done is to restrict the blacklisted Muslim Brotherhood only to the faction that fought in Russia, in the Caucasus, for example," he told Reuters.

Russia's Supreme Court and anti-terrorist committee were not available for comment. The Foreign Ministry declined immediate comment.

The Arab world's biggest nation is engulfed in a prolonged political crisis nearly two years after the fall of Mubarak that pits Morsy's Islamist supporters against liberal, secular and Christian opposition groups.

"Nobody really knows what will come out of this, but Egypt is such an important country that no matter what we think of its new authorities, we need to have a dialogue," said Fyodor Lukyanov, a prominent foreign policy analyst.

"It makes sense for Russia to make a bet on Egypt, or at least seek ties with them very actively. So I think they will soon solve the issue with the Muslim Brotherhood in Russia."

In Egypt, a Muslim Brotherhood spokesperson said the ban on the group in Russia was "a very bad thing" and made clear any real improvement in ties was unlikely before that was settled.

"Our leader [the head of the Brotherhood group] had mentioned that issue to the Russian ambassador in Cairo during a joint meeting where he told the ambassador: 'How come you are asking to have a strong relationship with us while you see us as a terrorist group?'," spokesperson Mahmoud Ghozlan said.

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Opposition forces scorn Morsy’s concession

by admin
December 9th, 2012

A concession offered by President Mohamed Morsy failed to placate opponents who accused him on Sunday of plunging Egypt deeper into crisis by refusing to postpone a vote on a constitution shaped by Islamists.

Islamists say they see the referendum as sealing a democratic transition that began when a popular uprising toppled Hosni Mubarak 22 months ago after three decades of military-backed one-man rule.

Their liberal, leftist and Christian adversaries say the document being fast-tracked to a vote could threaten freedoms and fails to embrace the diversity of Egypt's 83 million people.

More protests were planned near Morsy’s palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

Morsy had given some ground the previous day when he retracted a fiercely contested decree giving himself extra powers and shielding his decisions from judicial review.

But the president insisted the constitutional referendum go ahead next Saturday and the Muslim Brotherhood, from which he sprang, urged the opposition to accept the poll's verdict.

Ahmed Said, a liberal leader of the main opposition National Salvation Front, described the race to a referendum as "shocking" and an "act of war" against Egyptians.

The front has promised a formal response later on Sunday.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Brotherhood spokesman Mahmoud Ghozlan said the scrapping of Morsy's decree had removed any reason for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy."

The retraction of Morsy's 22 November decree, announced around midnight after a "national dialogue" boycotted by almost all the president's critics, has not bridged a deep political divide.

Prime Minister Hesham Qandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

‘Constitution without consensus’

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

Egypt tipped into turmoil after Morsy grabbed powers to stop any court action aimed at hindering the transition. An assembly led by the Muslim Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Opponents, including minority Christians, had already quit the assembly in dismay, saying their voices were being ignored.

A leftist group led by defeated presidential candidate Hamdeen Sabbahi demanded the referendum be deferred until a consensus could be reached on a new draft, saying there could be "no dialogue while blood is being spilled in the streets."

After the dialogue hosted by Morsy, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of 22 November. He said the referendum could not be delayed for legal reasons.

The decree ignited more than two weeks of sometimes bloody protests and counter-rallies in Egypt. Morsy's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely elected leader.

The April 6 Youth Movement, prominent in the anti-Mubarak revolt, derided the result of Saturday's talks as "manipulation and a continuation of deception in the name of law and legitimacy."

Islamists reckon they can win the referendum and, once the new constitution is in place, a parliamentary poll about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved at Morsy's retraction of his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a US$4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe." But a military source said these remarks did not herald an army takeover.

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Egypt slips in corruption index despite Arab Spring

by admin
December 5th, 2012

BERLIN — Egypt has slid in a global league table of perceived official corruption in the past year, and the "Arab Spring" revolutions have yet to produce serious anti-graft action across the region, Transparency International said on Wednesday.

In its annual Corruption Perceptions Index, the anti-graft organization said Egypt had fallen six places to 118th out of 176 countries as levels of bribery, abuse of power and secret dealings remain high in the Arab world's most populous nation.

"We know that frustration about corruption brought people out onto the streets in the Arab world," Christoph Wilcke, Transparency International director for the Middle East and North Africa, told Reuters.

"We've observed that in countries where substantial change occurred they're still struggling to put in place new systems of governance. That's reflected in these scores. The hope hasn't materialized yet in more serious anti-corruption programs."

The public sector league table from the Berlin-based group — on which the higher the ranking, the cleaner a country is — produced a mixed picture for nations swept up in last year's unrest.

Tunisia slipped two places to 75th while Morocco, which experienced less turmoil, fell eight spots to 88th. Syria, which is engulfed in a civil war, tumbled 15 places to 144th but Libya managed an improvement from a very low base, rising to 160th from 168th.

Overall, Denmark, Finland and New Zealand were in a first-place tie with scores of 90 on a new scale where 100 stands for most clean and 0 for most corrupt. Somalia, North Korea and Afghanistan shared last place.

Egypt was in a five-way tie with the Dominican Republic, Ecuador, Indonesia and Madagascar with a score of 32.

Islamist Mohamed Morsy became Egypt's first freely-elected president in June this year after a period of direct military rule following the overthrow of Hosni Mubarak last February.

Corruption ranging from the petty to the grand scale was one of the main grievances that toppled Mubarak. However, hopes that the problem would ease remain far away as people waiting for paperwork complain that low-level graft has become even worse since the uprising because of lax law enforcement.

Morsy has talked of sweeping out corrupt elements in the state and among those doing business with the government. However, many businesses have been rattled by his remarks, fearing it will mean replacing one elite with another or challenging deals that were agreed in good faith by investors with Mubarak's government.

However, some executives say there are at least a few signs that corruption has become a little less blatant in some areas of business, partly because of a new sense of accountability that has come with Egypt's still incomplete democratic transformation.

Wilcke said that Morsy has made a number of speeches in which he said fighting corruption was a top priority.

"But as far as we can tell, very little has happened on the ground in making this a reality, as far as putting in place systems that we know work to prevent corruption," he said. "Strengthening the independence of the judiciary is just one of them."

Wilcke said good work in countries that fight corruption can lead to an initial drop in their ranking because the public is made more aware of graft.

"I would say Egypt has made big promises and taken some small tentative steps," he said. "Anyone who witnessed the transition would agree they are extraordinarily difficult. It's not possible to change things over night."

Morsy is waging a high-stakes battle with Egypt's judges, many of them foes of his supporters in the Muslim Brotherhood, which is bent on purging a judiciary seen as tainted by Mubarak appointees.

Judges called strikes and top courts halted work in protest at Morsy's decree last month that extended his powers and put his actions temporarily above legal challenge.

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