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Sunday, 13 September 2020

Egypt slashes fines on wildcat building in 23 governorates

Gov’t slashes fines on wildcat building in 23 governorates: Local authorities have reduced fines paid to the government to settle building code violations by 10-70% in 23 out of Egypt’s 27 governorates, Local Development Minister Mahmoud Shaarawy told Prime Minister Moustafa Madbouly on Friday. Fines in Cairo dropped the most after the governorate approved a 30-55% fine reduction per sqm of buildings, followed by another 20-70% cut on the discounted amount. Other major governorates — including Alexandria, Port Said, Suez, Damietta, and Luxor — saw cuts of up to 50%. Buildings in areas classified as rural will see fines drop to EGP 50 per sqm, and those who settle their fines immediately could benefit from an additional 25% discount, Madbouly saids during a press conference on Saturday. Click / tap here for the full list of reductions, courtesy of Al Mal.

At least five major contractors and developers have paid more than EGP 1 bn to settle their building code violations, and hundreds of employees have been referred for prosecution for illegal construction contracts, Madbouly said during the presser (watch, runtime: 2:01), without providing additional details, except that some of the developers built several towers in Alexandria and the surrounding area.

Background: News of the reductions came after reports that MPs have been lobbying the government to extend for six months the end-of-September deadline to settle building code violations, arguing that mns are not able to cover the costs due to the harsh economic conditions wrought by the pandemic. Prime Minister Moustafa Madbouly on the same day reiterated that 30 September is the final date, but the government now seems to be open for compromise after the reductions.

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