Press Conference

Ladies and gentlemen,

I like to welcome you all and the foreign correspondents attending this meeting which we hold today to clarify the content of, and the background leading to the newly promulgated NGO law 153 for 1999. I will also be glad to respond to any questions you have concerning the law.

It is important to inform you that a number of leaflets on the new law in the French, English and Arabic languages have been prepared for circulation. These include a statement in which we respond to the criticism leveled at the law, as well as two tables:

The first indicates 29 areas of state control over NGOs have been removed in the new law. In the second table, MOSA quotes the articles of the law itself to prove the invalidity of all the accusations and criticism against it.

First of all, it is important that the new law be viewed within the context of the overall social development program currently underway and not as a separate piece of legislation. In the coming period, we shall see, the convening of the National Conference on Social Development Also many social draft bills will be debated during the next session of the People's assembly, prominent among which is law regulating the litigation procedures of the personal Statutes law.

Our concern for empowering NGOs is not confined solely to promulgating the law in question, we also saw the revival one year and a half ago of the NGO Public Union whose board of directors has been formed. The Union was given an appropriate headquarters, which was inaugurated by the First Lady a few days ago. There is also a comprehensive program to reform our social institutions including those for the delinquent juveniles, the handicapped and groups with special needs.

This background only indicates that the new law should be viewed within the framework of the overall social reform program. As you know, for a number of years now, we have been carrying out our economic reform program in a successful way. Our focus now will be on the social reform aspect.

A special attention has been paid to the social dimension, a fact which has been highlighted in all the political discourse of President Mubarak. This is also consistent with the political orientations of the state. Egypt has a strong history of voluntary work, which dates back to 1821 when the first NGO was established. A number of laws to regulate the activities of NGOs were adopted. Our history of voluntary work has been honorable. NGOs were credited with carrying out great works which the state

would not have been able to implement. So, when the new law was contemplated, the honorable history of voluntary work in Egypt was taken into consideration.

A) The philosophy behind the new law:

First, The philosophy of the new law stems from the government's firm belief that with the advent of the 21st century, voluntary associations should be dealt with as partners in the development process, on equal footing with businessmen and the private sector. It is with this philosophy in mind that the legislators of the law had devised its articles.

Second, in order for NGOs to act as real partners we have to streamline their work and provide them with more freedom. This is what the new law has provided for.

Third, as long as NGOs will be partners of development and progress into the 21 century, there has to be a balance between rights and duties, between the freedoms of individuals and those of the community.

Fourth, The new law has to cope with the new changes and developments on the local and national levels.

B) New gains under law 153 for 1999.

The Judiciary has become the ultimate power to settle any dispute arising

between an NGO and the Administrative Authority.

• An arbitration committee was set up with the aim of helping settling disputes before resorting to court.

• The new law exempts NGOs from all customs tariffson their imports.

• The percentage of tax exemption on the donations made to NGOs has been increased Under the new law from 7% to 10%.

• NGOs are now allowed to conduct economic activities to increase their income, which was not allowed under the previous law.

• The door is now open for NGOs to practice a wide range of activities. While the previous law specified seven fields of activities in which NGOs can operate. The new law specifies 4 specific areas of activities in which they cannot operate according to article 54 of the constitution. These are:

The formation of military or paramilitary organizations

Partisan or syndicate activities.

Exercising an activity that threatens national unity or disrupts the public order.

Profit-seeking activities to avoid any confusion with the companies law.

Apart from this, all other activities are permissible, including human rights activities. I have affirmed this in the minutes of the Parliament.

MOSA is currently conducting an institutional development program across its different departments. The aim being to upgrade the skills and capacities of its staff so that MOSA can, in the light of the new law, provide its support and services to NGOs in a smooth and efficient.

Moreover, I would like to indicate that the Ministry will continue to provide the following assistance to NGOs :

1) Providing through its central fund as much as L.E 32 million annually in financial aid to NGOs

2) Paying the monthly salaries of MOSA's staff on secondment to NGOs to provide them with their experience in areas such as rehabilitation or occupational formation. This form of technical assistance costs the state about L.E 50 million annually.

3) Assigning to some NGOs certain projects to carry out. The funds for these projects (L.E 45 million) are originally allocated to MOSA under section 3 of its budget . MOSA naturally reallocating the funds to the NGOs implementing the projects. The new law renders it possible for other ministries to follow the example of MOSA and assign some of their projects to NGOs.

4) Providing land and property to NGOs which represents an invaluable form of support.

Now, it is time to answer your question.

Q1. Is there an understanding among the Arab states that the law in question can be applicable to all Arab civil society organizations, or is it (the law) particularly Egyptian ? (A Qatari correspondent)

Answer: This law is purely Egyptian; it is directed to the Egyptian society alone.

Q2. Some NGOs have opposed and rejected the new law. Will this be taken into consideration, or will you go ahead with enforcing this law despite these objections?

Answer: Regardless of the grounds for these objections, the fact that they are raised by a very small minority- 14 or 15 out of a total of 14.600 NGOs is enough vindication for the law. What do 14 or 15 NGOs represent against the 14.600. These are the rules of democracy, not to mention that those objecting to the law are not legally registered NGOs. The Ministry of Justice has confirmed in 1991 that these societies are illegal because they are not registered with MOSA. The " City University society", for example, was closed because it was an educational institution, which has not obtained a license for operation. How come that a person goes to the Notary Public Office asking for a permission to form a press syndicate. We have to address these unacceptable practices. We are actually proud of this law particularly the support it provides to NGOs. It will, therefore, come into force. We hope NGOs will become our partners in development in the coming century. The law proves the democracy of the Government and its seriousness in empowering NGOs. We are in the process of preparing the Executive Statutes of the law in which the same group that contributed to drafting the law will be participating. This includes the illegal organizations, registered with the Public Notary.

Q3. One of the aims of the new law is to push forward voluntary work. However, article 75 of law provides for imprisonment penalties on carrying out voluntary work. Apparently this contradicts with the aims of the law.

Answer: It is superficial to interpret article 75 as such. This penalty is for practicing military or para-military activities or engaging in partisan or syndicate work to avoid any confusion with the Political Parties -or the Syndicate Laws. Furthermore, the Judge can decide the minimum limit of the penalty.

Q4. Article 8 stipulates that taking a legal action against an NGO entails temporarily stopping its activities. what would be the case of those benefiting by the activities of an NGO in case of its closure, including those beneficiaries who might be in need of intensive care.

Answer: This particular point will be dealt with in the Executive Statutes of the law. Drawing on previous experience, one option can be to transfer the activity of the closed society to another one, as was the case with Al-Menofyia Society. Another option is to transfer those with special needs to one of MOSA's institutions, or to get another society to run the closed one pending the decision of the court

Q5. I have been following the recent campaign against the promulgation of law 153. The fact that the previous law permitted NGOs to practice political activities resulted in many unacceptable practices on the part of some of them. We saw some organizations raising the banners of human rights and national unity but actually acting against the Interest of the nation and defaming the reputation of Egypt abroad. This campaign is organized by a small minority that the new law deprived them of receiving funds from abroad. Could you please throw light on these practices to fend off any attempt at imposing any form of custodianship on the Egyptian decision. (Mahmoud Bakri- El-Espou Newspaper)

Answer: You have mentioned that. the previous law permitted the registration of human rights organizations, which is not true. The fact is that these organizations have sprung up in an illegal way, and they have their own publications in which they write groundless claims. When the statement of the U.S state Department was released, we responded to it and they showed understanding to our point of view. the State Department Spokesman mentioned that they are currently in the process of examining the law. In another spot he said that the new law "might be restrictive". What the opponents of the law want to show is that there.