2 million civil servants will get the axe by 2020

The world did not end yesterday: The EGP slumped just over 10% against the USD yesterday, closing the day at about EGP 17.67 per greenback (against 16.05 on Saturday) as banks began offering USD to importers of non-essential goods. Don’t think of it as the EGP sagging: Think of it as demand bidding-up the price of USD as businesses bid for access to greenbacks in the formal banking system for the first time in, well, a long time.

Reuters quotes one banker as saying, “There is a lot of pent up demand [for USD] … There are people who are willing to buy at any price and they are mainly importers of non-essential goods," one banker said. Reuters explains that, “Since the float, more companies have gone to the banks for their [USD], leaving them scrambling for funds while a lack of liquidity means interbank trading got off to a slow start. Banks have focused on buying up [USD] from the informal sector and supplying them to clients rather than selling them on the interbank market.”

Deputy Finance Minister Amr El Monayer is quoted as saying last night that the first draft of the executive regulations to the value-added tax (VAT) is due out within hours. The document, which El Monayer had previously said would be put up for public discussion, is coming out more than a month late.

Pay up, lawyers. El Monayer says all professions will be subject to a 10% schedule tax. That includes accountants and lawyers, the latter of which have sued in a bid to escape the VAT. The “schedule tax” is literally just that: A separate schedule of rates for goods and services that do not, for one reason or another, fall under the 13% baseline rate (rising to 14% next year) to which everyone else is subject. Small shops — lawyers and accountants earning less than the EGP 500,000 threshold to register for the VAT — will be required to pay the schedule tax and will not be able to deduct taxes paid on any “production inputs” they may source. (The accountants, in particular, can complain all they want, but they’re the only profession of which we can think that will see a substantial increase in demand for their services just because the VAT is coming into effect, so…)

Tax Authority is giving business a bit of leeway on VAT registration. Businesses that missed the 9 October deadline to register for the value-added tax are reportedly being given a bit of leeway, with the TA logging late registrants as having met the deadline to avoid them incurring penalties, which senior ministry officials had said could include tax evasion charges.

President Abdelfattah El Sisi has arrived in Portugal for a three-day visit during which he is set to meet with President Marcelo Rebelo de Sousa and other officials to discuss strengthening diplomatic and economic ties between Cairo and Lisbon. El Sisi and de Sousa will reportedly discuss the possibility of resuming direct flights between Cairo and Lisbon, which were suspended in 2011.

OPEC deal in sight? OPEC’s 171st ordinary meeting takes place Wednesday, 30 November in Vienna, and the pre-meeting jousting has already begun. Iran says it is “optimistic” about the meeting and believes “crude prices could jump to USD 55 a barrel if an agreement is reached and non-OPEC producers cooperate.” We’re not sure we want to be on what’s least likely: Agreement being reached, or the exercise in cat-herding that is getting non-OPEC producers to fall in line. CNBC’s Patti Domm, writing for the site’s Market Insider column, has a nice wrap-up from the talking heads about “Why OPEC could end failed strategy and strike deal for real on production this time.”

Also next week:

• The 2016 edition of tech gathering Cairo ICT gets underway on Sunday, 27 November.
• Citi’s Global Consumer Conference takes place on Tuesday and Wednesday in London.
• Al Ahram Hebdo and the French Embassy in Cairo will host a conference headlined French Investments in Egypt: Opportunities and Challenges.
• A Russian delegation will be visiting Egypt next week to finalize all outstanding issues and sign the contract for the Dabaa nuclear power plant project with Egypt’s Electricity Ministry.

National Bank of Egypt vice-president Yehia Aboul Fotouh confirmed that the bank has begun opening letter of credit to cover imports of non-essential imports. Speaking with Lamees El Hadidy on CBC’s Hona El Assema, Aboul Fotouh urged viewers not to worry when they see USD exchange rate near EGP18 again as a result of the pent-up demand. “80% of international money transfer are now done through the banks and FX bureaus have started selling their USD to banks,” he said (watch: runtime: 5:51). He tells Lamees that NBE has covered USD 600 mn worth of imports since the float.

Lamees continued her spotlight on the med shortages for the second day running, a segment which went on for almost an hour. She spoke to physicians, syndicate heads and hospital officials in Qasr Al-Ainy, Mounira, Alexandria and Assiut, who reported that stocks of medical supplies will run out in 2-4 months and raised concerns about a burgeoning pharma black market (watch: runtime: (1:06:03)

She had kicked off the episode with a special feature on #ThisIsEgypt tourism campaign in London and Milan. A TV spot from the campaign is on loop in London-Heathrow Airport. JWT Cairo boss Hany Shoukry called in to talk about his agency’s campaign (watch: runtime: 14:05).

Lamees then zeroed in on Magdy Maken, the fish seller who died in police custody, allegedly under torture. A forensic report will be issued within three weeks, said a senior forensics official, who said it was taking longer than usual to complete the report because of “special procedures” in cases of death in police custody (watch; runtime: 5:39). Later on, the busy host interviewed MP Tarek El-Kholy who provided updates on the possible second batch of prisoners who will be pardoned by Presidential decree (Watch: running time: 35:17).

Kol Youm’s Amr Adibspent a chunk of last night’s episode transfixed on the EGP 4 bn losses incurred by the Egyptian Radio and Television Union (Maspero) in FY2015-16 (watch; runtime: 4:35 — the look on his face in the first three seconds is priceless). He used this to segue into a diatribe about the work ethic of Egyptians and how state entities exploit public funds. (watch: running time: 2:28).

Adib also covered the demonstrations by Nubian citizens opposed to the sale of land in Toshka as part of the 1.5 mn feddans project, land which they claim is their ancestral homeland. Adib interviewed none other than MP Moustafa Bakri (watch; runtime: 12:41), who has adopted the Nubian cause as his latest opportunity for self-aggrandizement. We do not mean to diminish the legitimacy of their calls, only the motives of Bakry: “Nubians are demanding their constitutional rights,” he said, a rare instance in which we’ll agree with the Honorable Member. Nubian MP Yassin Abdel Sabour said that he had attempted to contact the Ismail cabinet to talk about Nubian issues, but he was unable to reach the Prime Minister or any other minister (watch; runtime: 2:31).

Al Hayah Al Youm hosted Assistant Supply Minister Ahmed Kamal where he walked back his own comments made a day earlier saying that individuals whose monthly salaries exceed EGP 1,500 would have their ration cards revoked (watch; runtime: 5:17). Turns out, he says, that it’s only new applicants with higher salaries who would be denied a ration card. Last week, the Supply Ministry made an about face on subsidized rice, confirming and then denying it had raised prices, a development that led to the resignation of the ministry’s spokesman after just a week in office.

Gov’t to axe 2 mn civil servants by 2020: The Central Authority For Organization and Administration (CAOA, the bureaucracy’s bureaucracy, if you will) sees a day when Africa’s largest employer gets a bit leaner. CAOA chief Mohamed Gameel says the authority is looking at how to show 2 mn civil servants the door by 2020, cutting the total bureaucracy to 4 mn positions.

That process begins with the introduction of an early retirement program when the executive regulations for the Civil Service Act are released, Gameel said. The authority is expecting to retire bureaucrats at a rate of 200K per year, according to Gameel. As a general policy, the government will also hold off on new hires until the regs are release, but different government bodies can continue to hire if circumstances require it. The authority also plans to institute random testing of bureaucrats for use of banned substances, Al Borsa reports. While the government has always spoken about the need to reform and downsize the civil service (one of the largest drains on the state budget), this is the first time we can recall that a government official has come out and publically declared that there is a plan in place to downsize the bureaucracy.

The government maintains a corruption index? We’re more surprised to learn that the Cabinet Information and Decision Support Center maintains a corruption index than we were to learn that said index sees the Traffic Authority and the Civil Registry Office as the nation’s most corrupt institutions, according to Al Borsa. The IDSC has referred its most recent findings to the National Coordinating Committee for Combating Corruption for a more detailed investigation into accounts of bribery, inducement, and the squandering of public funds, the newspaper says.

The Ismail government has yet to decide on a timetable for its USD 2-2.5 bn eurobond issuance, said Finance Minister Amr El Garhy following a meeting with Prime Minister Sherif Ismail. The government is monitoring volatility in international markets and will decide in the coming few days when to go forward. That could be as early as this month or as late as the first half of January, he said, according to Al Shorouk.

The meeting, which included the head of the Customs Authority, also explored fixing the exchange rate for custom duties in light of the EGP float, said El Garhy, adding that the move is being considered. Customs Authority chief Magdy Abdel Ghaffar confirmed to Al Ahram that the ministry is talking with the central bank about implementing a fixing the rate for customs. Some importers, including many in the auto industry, have complained that the float has led to a doubling of tariffs. Brilliance Bavaria Auto (a subsidiary of BMW assembler and distributor Bavaria Group) is expecting profits to fall 50% in 2017 as the exchange rate on customs is expected to rise 90-100%, company GM Khaled Saad tells Al Mal.

Speaking of the Customs Act, El Garhy said the ministry is still looking at changes that could be implemented in an overhaul of the legislation, saying there is no deadline to introduce the amendments in the House of Representatives. El Garhy had stated back in September that an amended version of the law would soon be ready for “a national dialogue.”

In other fiscal news, El Garhy stated that the government is studying how to implement the annual raises for state employees who do not fall under the Civil Service Act, which grants bureaucrats annual raises of 7%.

Supply Minister Mohamed Ali Elsheikh denied citizens with incomes exceeding EGP 1,500 a month or a monthly pension of more than EGP 1,200 will lose their ration cards. He clarified that what was meant by the assistant minister’s remarks on television on Saturday night applied only to new applicants only and not existing ration cardholders, meaning that the Ministry will not issue new ration cards to individuals who are at the income thresholds mentioned above. A Ministry source told Al Mal the government will begin removing people from the ration card system starting January 2017, but that the threshold will be higher than the EGP 1,200-1,500 a month mentioned. There are people on the ration card system who “earn larger salaries and pensions than this,” the source said, but did not specify who will be barred from the system or how it will be implemented.

Elsheikh appears to be hedging his bet on the honor system, urging citizens to snitch on moochers, deceased relatives or those living overseas. The ministry collect reports of benefits fraud from 1 December to 28 February, he added, reminding citizens of the Ismail cabinet’s incentives adopted last week to reward those who turn supergrass on their peers, according to Al Shorouk. His statements follow a meeting of the cabinet’s economic group on Sunday which looked at cutting subsidies. To get a picture of just how bloated the system is: a Planning Ministry official said that 77% of Egyptian citizens currently receive subsidies on basic commodities because “we have mechanisms that identify families in need of subsidies, but none that can help us eliminate those who should not be receiving them.” It’s a brave admission that — alongside putting the Armed Forces in charge of cleaning the database of eligible welfare recipients — tells us the Ismail government is serious about getting this right.

Meanwhile, the Social Solidarity Ministry reportedly plans to increase its budget for cash subsidies to EGP 14 bn from EGP 12.5 bn during the current fiscal year, Youm7 reports. The funds will be allocated to the Takaful and Karama cash benefit programs. Some 4.3 mn families will benefit from the two programs by the end of this fiscal year, according to Minister Ghada Waly.

This is what happens when you give inmates the keys to the asylum: Outspoken House Budget Committee member Yasser Omar plans to introduce legislation to cap prices on goods and services. Think of it as pandering to the masses as Omar sells himself as the progeny of Nasser and Ned Flanders. Lest you fear you hopped in a time machine to the 1950s, Omar reassured Al Borsa that the this is not a return to full-on state management of the economy: The measure would set a cap margins on food at 50%, while other goods would be capped at a 20% profit margin. The law would be enforced selectively when prices get out of control, he added.

Omar also called for the Consumer Protection Agency to be granted more authority to clamp down on price gouging. Longtime readers know have doubtless read or heard us muttering that nobody has ever gone broke underestimating the greed of an Egyptian retailer, but really? The CPA? These are the folks who, last we checked, thought it was a good idea to shut down trade between governorates to help with the FX crisis pre-float.

Cooler heads prevailing … for now? Cooler heads, including House Economics Committee member Amr El Gohary, have noted that price controls aren’t exactly compatible with the Ismail government’s economic program. The business community was at an uproar last month when it was announced that the Ismail cabinet had been seriously considering implementing margin caps. Multiple reports suggest that that upcoming government-sponsored legislation might enforce those caps, including provisions in the first draft of the new Investment Act, and the new Consumer Protection Act.

Amendments to the State Lands Act which splits authority for management of state land between three different government agencies is now law after being signed-off by President Abdel Fattah El Sisi yesterday, Al Shorouk reported. Late last month, the House of Representatives had signed off on the amendments, which grant the Industrial Development Authority jurisdiction over land allocated for industrial development. The law also gives the General Authority For Reconstruction Projects and Agricultural Development Authority jurisdiction over land that could be reclaimed for agricultural use, while the New Urban Communities Authorities holds sway over land allocated for residential and mixed-use developments.

Public and private fertilizer manufacturers have said they would halt production if current natural gas prices are not reduced, Al Borsa reported. Production costs went up by EGP 1,300 to EGP 3,100 per tonne following the EGP float, they say, as the government charges producers for natural gas on USD basis. The manufacturers’ suggested amendments in a meeting with the ministers of agriculture, investment, industry, and finance, and a representative from the Oil Ministry. Suggestions range from the Agriculture Ministry agreeing that it will pay more for the fertilizer it purchases for the domestic market to letting the market set fertilizer rates and while the government provides a cash subsidy to farmers. Also suggested: Setting a fixed EGP to USD rate of 8.88 of the industry.

Cutting customs rates isn’t alleviating sugar crisis: The decision to cut customs on sugar imports is “ineffective,” food manufacturers are telling Al Borsa, as the international price is converging with the domestic one. One source said the Food Industries Holding Company is not supplying sugar in quantities required by manufacturers, telling them the commodity is out of stock. The chairman of state-owned Qaha says his company is relying on fructose now instead, but given the price increases, it is considering increasing its product prices by 20%. One other source says over 50 factories in the Borg El Arab industrial area have stopped production because of the sugar shortages. An industry official, meanwhile, is suggesting that dropping customs on unrefined sugar should be part of the solution, suggesting that 80% of all sugar imports are unrefined and then processed domestically.

State-owned banks win EGP 135 bn in new deposits: High-yield certificates of deposit issued by the National Bank of Egypt, Banque Misr, and Banque du Caire have attracted a collective EGP 135 bn in new deposits, unnamed banking officials tell Al Borsa. NBE raked in EGP 80 bn, while Banque Misr netted EGP 44 bn and BdC EGP 11 bn respectively. The move by state-owned banks to offer CDs with rates as high as 20% prompted private sector banks to offer their own high-interest instruments to hedge against losing client deposits.

Calls for an end to “premium pricing” for immediate delivery of cars: The Egyptian Automotive Dealers Association are calling on car distributors to end premium pricing on cars, which they blame for contributing to lackluster sales, Al Mal reports. Association board members have confirmed that a number of auto distributors have actually begun complying. Premium pricing or “overpricing” allows distributors to hedge against FX losses by charging customers a premium price on their models in exchange for immediate delivery.

Cleopatra Hospital Company reported a 32% y-o-y rise in net profit after tax to 22.1 mn in 3Q2016 on revenues of 215.1 mn, according to the company’s earnings release. Consolidated net income for the 9M2016 stood at EGP 52.9 mn on revenues of EGP 626.6 mn, which the company said underscored “the positive impact of economies of scale in operations and the ongoing maintenance of strong cost disciplines.” The largest contributor to 9M2016 group revenues was Cleopatra Hospital at 44%, followed by Cairo Specialised Hospital 22%, Nile Badrawi Hospital 18% and Al Shorouk Hospital 16%.

UK outfit Kingsway Capital increased its holdings of Edita shares to 5.18% from 4.90%, according to a bourse statement. The outfit, through its fund, Kingsway Fund – Frontier Consumer Franchises, bought 199,600 Edita GDRs at an average price of USD 18 per GDR at a gross transaction value of USD 3.59 mn.

MOVES – Soha Soliman is reportedly resigning her post as the secretary-general of the Social Fund for Development to become a vice president at Banque du Caire. The news will be made official within days, unnamed sources told Al Mal, adding that the Minister of Trade and Industry has approved Soliman’s resignation and appointed Nevine Game’ as interim secretary-general for the coming three months.

It’s all Trump, all the time in the global business press, and two of the more important pieces we’ve read in the past couple of days are in the Wall Street Journal (so, yes, paywall, we’re afraid). One looks at the split in Trump’s economic advisors between the “supply siders” and the “zero-sum crowd,” particularly on trade policy — and comes to the conclusion that it’s probably too early to come to a conclusion.

Deeper insight is on offer in an interview with David Malpass, the man tasked with leading the Trump administration’s transition for the Treasury Department and for economic policy. The former Bear Stearns chief economist is a veteran of the Ronald Reagan and George H.W. Bush administrations.

If you’re looking for the inside-baseball nuts and bolts of how Trump’s econ policy could be shaped, read both pieces, then head over to Politico to get a sense of how debate is shaping up on Trump’s USD 1 tn infrastructure plan, which the high-metabolism political news site says is running into “DC speed bumps.”

It’s a pleasantly quiet news morning, but we wouldn’t be surprised if that were shattered by news that some 292 alleged Daesh members and sympathizers have been ordered to stand trial before a military tribunal on charges of plotting to assassinate President Abdel Fattah El Sisi and Saudi Crown Prince Mohamed bin Nayef.

Elsewhere: Donald Trump made sense to a lot of Americans whose job prospects shriveled between the 1980s and 1990s much like President Abdel Fattah El Sisi did to Egyptians when they facilitated his rise to power, writes Michele Dunne for the Carnegie Endowment. Cue criticism of both presidents.

In his latest column on El Watan, Emad Adib wonders if it’s best for Egypt to follow the reconciliatory path and make peace with its past using transitional justice, following the examples of South Africa and Rwanda, “or is non-reconciliation, non-pardoning, and retribution the answer?” In his short piece, he entertains a hypothetical scenario in which a presidential decree is issued pardoning Egypt’s ex-presidents Hosni Mubarak and Mohamed Morsi and lists the variegated reactions the news could receive from Egypt’s different political and social fronts.

There are few 50-somethings left in banking, corporate law and powerful managerial jobs, and there’s about to be one less. Most of us here have at least a few years before the big 5-0 hits, but even the spryest among us have recently been heard muttering about “getting older” and all that entails.

Enter Lucy Kellaway, the FT careers and office life columnist (our description, not hers) whose work we often highlight for our readers. A month ago, Kellaway was writing about the disappearance of 50-somethings from banking, finance and corporate law in London: “In about 200 bankers I could see only one person who seemed to be my age — and that was the chief executive. As I walked back through the City, I stared at the people going home: a sea of commuters in their twenties, thirties and forties.”

Today, she’s one of those disappearing 50-somethings — and writes that she wants you to disappear with her: Next summer, she will retire to become a teacher of trigonometry in an inner London school. She’s even gone so far as to create an NGO to encourage more of her peers to do the same.

“Not everyone thinks that’s a great idea,” she writes, “When I told my fellow columnist Gideon Rachman about it he looked at me in befuddlement. ‘Let me see if I’ve understood,’ he said, brow furrowed. ‘You are leaving a job you are good at, where you get money, praise, freedom, glamour and flexibility. You are swapping it for something that is less well paid, difficult, has no freedom, no glamour, is intensely stressful and you may be rubbish at it. Or am I missing something?’”

Not an FT subscriber? The Guardian has a bit more with no paywall.

After maintaining an extremely low profile for much of her husband’s presidency, Egypt’s First Lady, Intissar Amer El Sisi, was all over the airwaves yesterday, leading a donation drive for the Tahya Misr Fund with some help from Social Solidarity Minister Ghada Waly and International Cooperation Minister Sahar Nasr (watch; runtime: 2:41).

Iran’s hostile approach towards the region has created instability and tension, the Saudi Embassy in Egypt said in a statement carried by Ahram Gate. The instability in Yemen is an extension of Iranian interference in the region, the statement says, and Iran continues to support and empower the rebels by providing weapons, military experts and missiles. The statement highlighted an incident where it says Saudi forces managed to intercept a fired missile aimed at Mecca.

GB Auto has contracted Shell Oils and Lubricants Egypt to supply it with car oils for all domestically assembled and imported vehicles, Shell Oils Managing Director Saher Hashem told Al Mal. The new agreement does not affect an existing similar agreement between GB Auto and Russia’s Gazprom Neft-Lubricants, said Hashem. The Shell oils will be used at GB Auto service centres and limited strictly to trademarks operated by the company, while Gazprom lubricants will be sold to the public.

Egypt Gas is currently awaiting the approval of the Egyptian Natural Gas Holding Company (EGAS) to increase its installation fees now that its costs have risen as a result of the float of the EGP, Al Borsa reports. Egypt Gas CFO Tarek Farouk said the company imports 60% of its raw materials, which have doubled in cost in recent weeks.

Hero MEA have launched a jam, honey, and juice factory in Qalyubia at a total cost of USD 5 mn, Al Borsa reported. The factory is solar powered and has replaced using diesel and gasoline for energy in a bid to reduce emissions, Managing Director Mahmoud Bazan said. The factory has an annual production capacity of 75,000 tonnes.

It’s rice harvest season and the General Authority for Supply Commodities (GASC) is launching a tender to purchase 500,000 tonnes of rice in 83,000-tonne monthly increments over a period of six months, Al Borsa reported.

The Armed Forces are set to import USD 35 mn worth of blood derivatives and meds to treat liver disease through a domestic private sector company, Al Borsa reported. A source at the company says the imports are meant to address a recent shortage. The imports will supply 75% of the domestic demand, the source added. We had earlier reported that the Health Ministry plans to build an EGP 2 bn blood derivatives plant in cooperation with the Military Production Ministry.

Implementing an electronic visa system is currently one of the government’s top priorities to help promote the return of tourism to Egypt, Tourism Minister Yehia Rashed told Al Shorouk. The ministry is currently preparing special traveller’s insurance packages that will give Egypt a competitive edge with tourists, he added.

EgyptAir has signed an agreement with Japan’s Apt Tours to operate 24 flights between Cairo-Osaka and Narita-Luxor starting in November 2016 for six months, Al Mal reported. Despite delays in operation at the request of Apt Tours, and delays in scheduled payments, EgyptAir did not cancel the agreement to promote Japanese tourism.

The International Cooperation Ministry is in negotiations with Japan and South Korea to finance Cairo Metro lines 5 and 6, Al Borsa reported. The ministry is focusing on financing transportation sector projects to support new developments like the Administrative Capital and the 1.5 mn feddans, she added, highlighting that it’s the second most sought after sector for external investment following energy.

Construction on the Cairo Metro line between Ataba and Kitkat square is set to begin on 10 December at an investment cost of USD 900 mn, head of the National Authority for Tunnels Tarek Gamal El Din told Amwal Al Ghad. Construction and civil engineering works costs are estimated at EGP 11 bn, he added. The project will be executed by Vinci and is expected to be completed in 2022.

The Central Bank of Egypt will allow FX bureaux to operate from 9am to 9pm and stressed that operating outside those house is illegal, Al Borsa reported. Exchange offices bureaus are expected to keep the same hours on weekends and national holidays; they were previously allowed to stay open until 11pm.

Banque du Caire is planning to extend EGP 2 bn in funding to microenterprises in 2017, head of the microfinance sector Atef El Gohary told Al Borsa. The bank has provided EGP 1.5 bn to microenterprises in 10M2016, he added.

The Egyptian Railway Projects and Transportation Company (ERJET) has completed drafting an advertising agreement with France’s JCDecaux for the Cairo Metro, ERJET Chairman Sherif Nabih told Al Borsa. JCDecaux had applied for exclusive advertising rights for 10 years at a marketing value of EGP 500 mn, while ERJET offered rights until 2020 at a value of EGP 175 mn, Nabih added.

The House of Representatives’ Economic Committee is holding-off on sanctioning a draft law on sole proprietorships, Al Borsa reports. Committee member Medhat El Sherif told the newspaper that the House is pressing the government amend the draft and ensure there are no loopholes that would “diminish transparency” or allow larger companies to misuse the proposed act to dodge taxes. The proposal stipulates that sole proprietorships be treated in line with limited liability companies and that they must be entities separate from the single proprietor owner.

A California-based international shipping container outfit has commissioned a lawyer to file a case against the agents of Korean shipping company Hanjin’s representatives in Egypt, Al Mal reported. Hanjin had filed for receivership internationally and importers who had commissioned the company to ship their goods are now taking legal action to seize any of their vessels passing through Egyptian ports of the Suez Canal. In one of our weekend edition issues in September, we talked about how Hanjin’s financial woes might have already ruined Christmas for some shoppers.

The Egyptian Council of State (Maglis El Dowla) is looking into a lawsuit filed by local importers to scrap the exporters registry, which enforces quality control restrictions on foreign factories exporting to Egypt, imposed by the Trade and Industry Ministry, according to Egypt’s biggest nagger and the head of the importer’s division of the Cairo Chambers of Commerce Ahmed Sheeha. Importers appear to have followed through on their threats made back in August that they would sue the Ismail government over its import restrictions. Foreign companies had also considered joining in the lawsuit, as we noted at the time.

The Finance Ministry has formed 25 tax settlement committees nationwide to begin the yearlong process of working through 160,000 tax disputes worth a combined EGP 15 bn, Deputy Finance Minister Amr El Monayer said. Fifteen committees will examine income tax disputes, while 10 will work to resolve disputes over sales tax.

The Prosecutor General has referred 292 defendants to a military tribunal on charges of affiliation with Daesh and involvement in the assassinations and attempted assassinations of judges and security personnel, mostly in North Sinai. Of the 158 arrested, 66 are said to have offered detailed confessions. The defendants confessed to carrying out an attempt on El Sisi’s life while he performed umrah in Mecca by stashing explosive devices on the 34th floor of a hotel at which he was rumored to be staying. Al Masry Al Youm quotes the full text of the prosecutor’s statement on the matter.