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

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