Financial Crime World

Whistle-Blowing in Egypt: Challenges and Recommendations

Introduction

Whistle-blowing is a crucial mechanism for reporting corruption and promoting good governance. However, in Egypt, the lack of legislation and institutional framework can deter citizens and employees from submitting complaints. This article highlights key challenges and provides recommendations to improve whistle-blowing practices.

Key Challenges

No Specific Legislation

  • There is no law that regulates whistle-blowing practices or protects whistle-blowers.
  • The absence of a clear legal framework makes it difficult for citizens and employees to report corruption without fear of retaliation.

Retaliation Concerns

  • Whistle-blowers often fear negative consequences, which can be a deterrent to reporting corruption.
  • This fear is exacerbated by the lack of protection from prosecution or disciplinary action.

Institutional Framework

  • The institutional framework for handling whistle-blower complaints is lengthy and bureaucratic.
  • This can demotivate citizens and employees from submitting complaints, as they may not see timely resolution.

Limited Authority

  • Organizations like the ASA/CAO have limited authority to investigate and inspect instances of corruption.
  • They do not have the power to prosecute or take follow-up actions, which can limit their effectiveness.

Fear of Prosecution

  • False whistle-blowers can be subject to a fine (100-500 EGP) or imprisonment (6 months) under Article 22 of the law regulating Illicit Gains.
  • This fear can also deter citizens and employees from reporting corruption, as they may not want to risk prosecution.

Recommendations

Introduce a Whistle-Blowing Act

  • A law should be introduced to regulate whistle-blowing practices and protect whistle-blowers.
  • This would provide a clear framework for reporting corruption and protecting those who come forward.

Mainstream Good Governance and Accountability

  • Large and multinational companies should engage and encourage small and medium-sized enterprises (SMEs) to follow good governance and accountability practices.
  • This would promote a culture of transparency and accountability, making it easier for whistle-blowers to report corruption.

Raise Awareness

  • Civil society organizations, media, and Transparency International can raise awareness about available whistle-blowing mechanisms and advocate for needed legal reforms.
  • By educating the public and stakeholders about the importance of whistle-blowing, we can create a more supportive environment for those who come forward.