Egypt courts the unknown in journey to democracy



CAIRO // In the past week Egypt's highest court has ruled that parliament should be dissolved and Ahmed Shafiq, Hosni Mubarak's last prime minister, should be allowed to run for president.

At the same time, it has notably stood aside as the country's interim military rulers granted themselves full legislative powers and control of appointments to the committee that will rewrite the country's constitution.

Reformist judges and former legislators say the behaviour of Egypt's judiciary has enabled the military to carry out a "soft coup" that has upended Egypt's democratic transition.

They argue that many of the country's judges - in particular, members of the Supreme Constitutional Court - have used their powers to preserve the prerogatives of Mubarak-era officials and institutions and to prevent the rise of a strong Islamist government.

The result, they say, is a judiciary that is not perceived by many Egyptians as an impartial referee in the swelling confrontation between Mr Shafiq and Mohammad Morsi, the Muslim Brotherhood candidate, both of whom are claiming victory in last weekend's run-off and accusing the other's campaign of vote fraud. With no institution trusted to serve as an honest broker, the venue to determine which candidate prevails may shift to the streets, they fear.

"The Supreme Constitutional Court is now an obvious example of how political groups of the old regime are using the judiciary as a tool for their gains," said Ahmed Mekky, the former vice president of the Court of Cassation.

"We now know that Egypt will not be able to achieve democracy unless the revolutionary powers are able to seize power [from the Supreme Council of the Armed Forces (Scaf)]."

Without a widely trusted judiciary, Egypt faces a perilous road ahead, said Robert Malley, Middle East and North Africa programme director for the International Crisis Group.

The situation in Egypt is like "Bush v Gore without a Supreme Court to break the logjam," said Mr Malley, referring to the controversial US presidential election in 2000 between George W Bush and Al Gore.

"There is a risk of duplicate institutions and political systems that ignore and confront each other: two constitutions, two ideas of parliament, two presidents ... leading at best to paralysis, and at worst to violence," he said.

At the centre of Egypt's court controversy is Farouk Sultan, who is both the head of the SCC and the Supreme Presidential Election Commission. He will step down on July 1, when he reaches mandatory retirement age.

When he was appointed by Mubarak in 2009 to head the country's highest court, there were already fears the president was trying to influence the court just two years before presidential elections then scheduled for 2011. The SCC oversees some of the country's most sensitive issues, such as the role of Islamic law and elections.

Mr Sultan spent much of his career in what legal scholars describe as "more sordid parts" of the Egyptian judicial system: the military and state security courts, which for decades deprived civilians of personal rights in the name of national security.

Since parliament first convened earlier this year, newly elected MPs have taken a highly confrontational approach to the SCC, attempting to strip it of some of its powers. All 19 members of the court were appointed by Mubarak from 1991 to 2010.

On Wednesday, Mahmoud El Khodeiri, the head of the former parliament's constitutional and legal committee and a reformist judge, criticised the SCC for ruling on the constitutionality of parliament because of "the conflict" between Mr Sultan and the parliament.

There are signs that Egypt's judiciary are taking an increasingly self-defensive stance in the country's rocky transition to a new democratic government, analysts said.

"Many justices seem to be as concerned and maybe more concerned about a possible tyranny of the majority than about the tyranny of the army," said Clark Lombardi, an associate professor of law at the University of Washington who has studied Egypt's courts.

Mr Lombardi said the ruling by the SCC on parliamentary elections, which said a third of the seats were unconstitutional, was "legally defensible", but "many, both outside and inside Egypt, think that they have impacts on political life that can't be justified".

The ruling paved the way for the Scaf to enlarge its powers in a new constitutional declaration last Sunday.

Egypt's new president has yet to be officially announced by Mr Sultan's commission.

Mr Morsi, a prominent member of the Muslim Brotherhood, has declared himself the winner and a monitoring run by a group of judges has confirmed the results.

The Muslim Brotherhood has alleged that the Scaf was using the country's ambiguous legal situation to unilaterally check the rise of elected leaders not sympathetic to the military's desire for control over its own affairs and budget.

The Brotherhood's claim is centred on the allegation that judges from the SCC consulted with the Scaf over the same parliamentary law that SCC later ruled unconstitutional.

"The law was written by Scaf under the consultation of the same judges of the constitutional court that made the ruling," said Amr Darrag, the secretary general of the Muslim Brotherhood's Freedom and Justice Party. "They were fully aware of the issues in the law, but kept it to have the ability to attack the parliament whenever they wanted."

The tactic of allowing groups to operate illegally is typical of the Egyptian government because it allows them to shut the group down whenever it is convenient, said Michele Dunne, the director of the Rafik Hariri Centre for the Middle East at the Washington DC-based Atlantic Council.

"If members of the judiciary advised the Scaf that this law was unconstitutional and they went through with it, then that is completely undemocratic," she said. "If the judiciary has to defend the country from the choice of voters, that's undemocratic."

Some prominent Egyptian lawyers, however, said the SCC was simply remaining impartial and staying within the bounds of its responsibility to rule on constitutionality.

Mona Zulfiqar, a human rights lawyer, said the fact that SCC had ruled that parliament should be dissolved twice before against the wishes of Mubarak in 1987 and 1990 was proof that the judges were independent.

Now, she said, the Muslim Brotherhood was trying to use Mubarak's tactic during those dissolutions to call for a nationwide referendum on the SCC's ruling.

"A referendum is not required by law, but Mubarak did that as a manner of resisting the power of the court judgement," she said. "That's exactly what the Muslim Brotherhood are arguing now. They are arguing Mubarak's point."

The specs

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Roll of honour

Who has won what so far in the West Asia Premiership season?

Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain

Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons

West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins

UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles

West Asia Cup - Winners: Bahrain; Runners up: Dubai Exiles

West Asia Trophy - Winners: Dubai Hurricanes; Runners up: DSC Eagles

Final West Asia Premiership standings - 1. Jebel Ali Dragons; 2. Abu Dhabi Harlequins; 3. Bahrain; 4. Dubai Exiles; 5. Dubai Hurricanes; 6. DSC Eagles; 7. Abu Dhabi Saracens

Fixture (UAE Premiership final) - Friday, April 13, Al Ain – Dubai Exiles v Abu Dhabi Harlequins

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The Gentlemen

Director: Guy Ritchie

Stars: Colin Farrell, Hugh Grant 

Three out of five stars

The specs
Engine: 2.0-litre 4-cyl turbo

Power: 201hp at 5,200rpm

Torque: 320Nm at 1,750-4,000rpm

Transmission: 6-speed auto

Fuel consumption: 8.7L/100km

Price: Dh133,900

On sale: now 

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Fines for littering

In Dubai:

Dh200 for littering or spitting in the Dubai Metro

Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle. 
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle

In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches