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On September 5th, 2020, President Abdel Fattah
Al-Sisi promulgated Law No. 188 of 2020, regulating contracts for
public authorities.

Under this law, all public authorities of the state are
prohibited from entering into any contracts with those who have
been issued a final court judgment, for offenses of customs or tax
evasion, unless they have been legally rehabilitated, regardless of
whether the case is made against natural persons, or individuals
legally representing a particular company.

For instance, this law aims to deter tax and custom duty evaders
by preventing administrative authorities from dealing with
them.

Despite, however, these advantages, this law is part of a wider
legislative move, that is consistent with the state’s strategy
since June 30th 2013, to create frameworks that combat
corruption, and regain a culture of justice, transparency, and
equity, whilst simultaneously protecting public money and
administrative authorities from corruption. Furthermore, the law
provides a means of monitoring and tracking the proceeds of
criminal acts, and individuals who have been permanently convicted
in cases of misusing public money, by preventing them from dealing
with the state agencies in any contracts.

Arguably, this law avoids the shortcomings of the previous law
and affirms the state’s full commitment to combat corruption
through coordination between all government agencies. This in turn
will provide uniformity for anti-corruption policies, by
introducing governance principles that the state should apply in
their continued effort to advocate for transparency, integrity, and
accountability for wrongdoers.

Originally Published by Andersen Tax & Legal, December
2020

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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