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Thursday, 25 October 2018

House reps. want to amend regs governing sports investments

LEGISLATION WATCH- MPs to meet with Finance Minister to discuss regulation of slush funds: The House of Representatives’ Economics Committee is expecting to meet with Finance Minister Mohamed Maait soon to resume discussions on the regulation of ministerial “private accounts”, Rep. Medhat El Sherif said yesterday, according to local media reports. El Sherif said that Maait promised to present the committee with a complete list of existing accounts in order for legislators to determine how best to regulate them. The House had approved legislation last July that earmarks 5-15% of these funds for state coffers and allows the state to claim a one-time 15% cut of the annual surplus generated by them as of 30 June, 2018. Typically maintained outside the budget system and with little oversight, private accounts had gained an unsavory reputation as slush funds. MPs have been calling for years for greater oversight of the funds. Adding fuel to the first: Reports that a private fund managed by Cairo Governorate recorded a surplus of EGP 140 mn.

MPs also want to amend legislation governing sports investments: Members of the House’s Sports Committee approached the assembly yesterday with proposed amendments to the 2017 Sports Act, claiming that some of its clauses discourage investors from the sector. Among those are provisions that place restrictions on the ownership structure of sporting clubs. Under the Sports Act, individuals are allowed to invest in sporting clubs only through joint stock companies.

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