EGYPT: MINISTER FOR SOCIAL SOLIDARITY DISCUSSES

C O N F I D E N T I A L CAIRO 002581

SIPDIS

SIPDIS

DEPT FOR NEA/ELA, DRL
NSC STAFF FOR WATERS

E.O. 12958: DECL: 08/20/2017
TAGS: PGOV PHUM EAID KDEM EG
SUBJECT: EGYPT: MINISTER FOR SOCIAL SOLIDARITY DISCUSSES
REVAMP OF NGO LAW

REF: A. CAIRO 2200

B. CAIRO 2067

Classified by DCM Stuart Jones for reasons 1.4 (b) and (d).


1. (C) In an August 15 meeting with Minister of Social
Solidarity (MSS) Ali Al-Moselhy, USAID Acting Director
followed up on the Ambassador's July meeting with Moselhy
(ref A),and expressed USG concern about the new draft NGO
law. Press reporting about the yet-to-be-publicized new law
suggests that the GOE may be seeking to restrict further the
ability of civil society organizations (CSOs) to pursue
agendas critical of the GOE and to accept foreign funding.
Moselhy said he had not yet seen the draft law, or even read
about it in the newspapers, noting that the input for the new
law is being prepared by a committee that "has no legal
standing" and is only "advisory" in nature. The process was
ongoing, Moselhy said, and was "still open to public
discussion." Moselhy said he plans to meet with the group's
steering committee in early September to review its draft
"recommendations." The minister also asserted that NGOs had
been given a full opportunity to contribute to the draft law.
We asked him why many in the NGO community are critical of
the proposed new law. Moselhy said he did not understand
their objections: "Why don,t you ask them?"


2. (C) USAID Acting Director also told the minister that we
are concerned about the draft law's alleged proposed
limitations on CSOs to register as "civil companies" (vice as
formal non-governmental organizations). Moselhy expressed
his annoyance at groups (like the Ibn Khaldun Center) which
seek to avoid the complex and lengthy NGO registration
process by registering as civil companies, and suggested that
it is a high priority for the GOE to close this loophole.
Moselhy said that some NGOs are operated by "criminals" who
are "defrauding the Egyptian people." USAID Acting Director
replied that although the GOE has legitimate security and
fiduciary interests in NGO operations, those interests should
be balanced against the civil liberties of those engaged in
non-governmental public service. (Note: Some Egyptian CSOs
register under the Egyptian commercial code as non-profit
"civil companies," a step that allows them to secure legal
status and avoid oversight by the MSS. Egyptian law,
however, also contains imprecise provisions that prohibit
"NGO-like" activity unless a group is formally registered as
an NGO with the MSS. Some CSO activists have expressed
concern that a new NGO law, and related commercial code
amendments, would close off the "civil companies" option.
Ref B contains additional background. End note.)


3. (C) USAID Acting Director told Moselhy that the USG
would have objections to a new NGO law that would allegedly
require foreign donors to utilize a special "coordination
committee" that would direct funds to NGOs according to GOE
priorities. Moselhy agreed that this provision should be
dropped, stating that he did not want a confrontation with
the USG. Moselhy ended the meeting by reiterating his wish
that we encourage NGO partners to submit their ideas and
critiques on the new law directly to him. Moselhy also
expressed his eagerness to continue to discuss the draft law
with us and invited USAID Acting Director to continue their
dialogue on this issue.


4. (C) Septel will review current information available
about the new law as well as civil society reactions to the
new proposed law.
RICCIARDONE