Shura Council: Government ‘Special Funds’ Worth EGP 47.4 Bln

Central Auditing Organization (CAO) said there are 6361 accounts for government ‘special funds’ that worth EGP 47.4 billion and there are 6061 funds worth EGP 38.6 billion that were transferred to a unified account. The remaining funds are due to the administrative body, local administration, service bodies, legal entities and universities, according to Shura Council’s report.

“Special funds” are raised by state institutions through means other than customs or taxes, such as hospital fees, parking tickets, ID charges or licensing buildings, vehicles and stores charges.

These funds are not incorporated into the state’s budget, but instead they are used by the institutions to offer public services.

There are 300 funds worth EGP 8.8 billion that were not transferred to the unified account at Central Bank of Egypt, violating the Law issued in 2006, the report said.

The report, which will be discussed by Shura Council’s members next Monday, added that these institutions are charging citizens on services that are subsidized by the government such as education and health services. They are using the government’s buildings, machines and other equipments, and then they acquire the revenues to themselves. This created a difference between the salaries of the employees working in these institutions and that of their peers in other institutions.

Due to lack of supervision, the special funds are used by the institutions to offer loans, advances and Condolences and congratulatory advertisements as well as illegally disbursed by senior officials.

The report recommends combating corruption in these funds by making it under the supervision of Ministry of Finance, being banned from opening a private account unless the ministry approves and not offering Ministry of Finance’s representatives who are supervising the funds any bonuses.

The report also stresses on the importance of forming committees from CAO and Ministry of Finance to monitor all funds and canceling any legal item giving authority to open a special account or fund for a government institution as well as enacting a law incriminating those who did not inform the Ministry with the funds and banning all activities that have not budget regulations. In addition, the Ministry of Finance shall monitor these funds before disbursements and CAO after disbursements.

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