Bribes and Lost Rights: 23,000 Real Estate Corruption Cases in Egypt

Over 23,000 lawsuits were filed in Egypt against government officials and agencies, involving bribery, compensation disputes, and violations of expropriation laws, as officials allegedly accepted bribes for unsafe building licenses and withheld lawful compensations
Picture of Tarek G-hafiz

Tarek G-hafiz

The number of legal cases related to construction violations, property disputes, and compensation in Egypt has risen sharply over the past decade, coinciding with the current administration’s rise to power. The government has emphasized resolving construction violations as a means of “addressing social circumstances while preserving Egypt’s real estate wealth.” In an August 2020 speech during the inauguration of national projects in Alexandria, President Abdel Fattah El-Sisi highlighted the surge in construction violations, particularly on agricultural land, warning that the military might intervene if the transgressions continued.

In April 2019, Law No. 17 of 2019 on reconciliation for some building violations and the regularization of conditions was issued. Amendments followed in January 2020 under Law No. 1 of 2020. According to Article 3 of the amended law, reconciliation requests must be submitted within six months of the law’s implementation, accompanied by an inspection fee of up to EGP 5,000, with the possibility of an extension upon the Prime Minister’s decision. However, in less than four years, a new reconciliation law (Law No. 187 of 2023) was enacted, aiming to address the surge in related legal cases. This frequent legislative activity has raised questions about the need for multiple laws within a short period.

Chairman of the Housing Committee in the House of Representatives, Mohamed Attia El-Fayoumi, previously stated that the reconciliation law was introduced to tackle the widespread issue of construction violations. He noted that under the new law, five million violations were documented, ranging from unlicensed buildings to encroachments on state property and agricultural lands. Despite 2.8 million applications for reconciliation under the previous law, only 2% of applicants completed the process.

A report by the Ministry of Local Development covering the period between 2000 and 2017 revealed that 2.8 million buildings out of Egypt’s 13.5 million total structures were in violation, amounting to 21% of the total number of buildings according to the 2017 census.

The problem, however, goes beyond the government’s intention to resolve building violations. Citizens have accused government officials of exacerbating their problems, leading to approximately 23,000 legal cases filed against officials for corruption, according to judicial sources. Plaintiffs allege that some officials have delayed implementing provisions of the new law, disrupting their interests. Court documents and testimonies reviewed by Zawia3 reveal bribery allegations involving officials tasked with reviewing reconciliation requests, approving compensations, and disbursing payments for properties expropriated for public development projects. These officials are accused of demanding bribes in exchange for executing decisions and compensating citizens whose properties were seized for public benefit.

In addition, Zawia3 has documented accusations against the government concerning property expropriation cases. Citizens have filed lawsuits claiming that the government seized their lands and properties, which met all legal standards, under the pretext of development projects, without providing compensation.

The Expropriation Law No. 10 of 1990 stipulates that “the expropriation of properties for public benefit shall be conducted in accordance with the law, with compensation provided to the owners.” The law mandates the establishment of a review and evaluation committee to determine appropriate compensation. Property owners are entitled to object to the evaluation within 30 days, ensuring fair compensation amounts. This law has recently gained prominence due to the rising number of expropriation cases.

As public grievances grow, the handling of construction violations and property disputes remains a contentious issue, raising questions about the effectiveness of current legislation and government practices.

23,000 Lawsuits Against Government and Officials

Zawia3 spoke to six prominent judicial sources from various legal and judicial entities, who chose to remain anonymous due to their active service and lack of authorization to speak to the press. These sources confirm that approximately 23,000 lawsuits have been filed nationwide this year concerning this issue.

According to these sources, around 14,000 cases involve bribery and the acceptance of funds by officials in exchange for approving settlements for properties and buildings that violate legal standards. These properties often lack safety and security requirements but were granted licenses unlawfully. Additionally, around 7,000 cases pertain to payments demanded by officials in return for disbursing compensation owed to individuals who had already received approval for their claims. Furthermore, approximately 3,000 cases involve allegations against the government and state officials for violating the Expropriation Law for public benefit, committing legal violations that amount to crimes.

Zawia3 obtained documents related to several cases concerning these allegations, including bribery for granting licenses to non-compliant properties, bribery to release compensation payments, and violations by the government in implementing the Expropriation Law.

One of these cases, for which Zawia3 reviewed the documents, is numbered (15683) of 2024, registered with the Agouza Criminal Court. The defendants in the case are Mohamed Hafez Mottana, an associate professor at the Faculty of Engineering, Mansoura University, and head of the committee responsible for reviewing settlement applications for building violations in Agouza district, along with Medhat Fathy Sorour, a freelance architect and member of the same committee, representing the Civil Protection Department.

According to the case documents, the two defendants demanded bribes in return for approving a settlement application for building violations and legalizing the property’s status, even though the property was deemed uninhabitable due to structural violations posing a threat to residents’ safety.

A Copy of the Case Files Obtained by Zawia3
A Copy of the Case Files Obtained by Zawia3

Investigations by the Supreme State Security Prosecution revealed a decree issued by the Governor of Giza, No. (7600) of 2019, forming technical committees across Giza Governorate to address applications for reconciliation on building violations. One such committee in Agouza, chaired by the first defendant and including the second defendant, was tasked with reviewing these applications.

According to the case documents, Ashraf Mohamed Salem, a retired technical officer in the Armed Forces, testified during the investigations that he submitted an application to the Agouza district office to reconcile building violations for a property owned by his brother. This application was registered under No. (127) of 2019. Salem explained that as he proceeded with the reconciliation process, the committee issued a report deeming the building in need of reinforcement and renovation, which prevented the approval of his application.

Salem stated that he contacted the second defendant to inquire about his appeal. The defendant requested to meet him outside his workplace at a private office in Lebanon Square, Giza. During the meeting, the defendant demanded a bribe of EGP 150,000 in exchange for expediting the reconciliation process. After initial attempts to resolve the matter through district officials failed, Salem reported the incident to the Administrative Control Authority (ACA).

Following the report, the ACA obtained permission from the Public Prosecution to monitor and record phone calls and document meetings. This surveillance confirmed the bribe request, leading to the arrest of the second defendant during the transaction.

In his confession, the second defendant admitted to conspiring with the first defendant to manipulate and falsify engineering reports, falsely certifying the building as structurally sound and meeting safety standards. Both defendants were subsequently referred to trial by the Supreme State Security Prosecution on charges of soliciting a bribe to perform duties within their public positions.

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Allegations Against the Government Over Heritage Property

“The government is accused of violating the law instead of enforcing it.” This statement sums up three lawsuits obtained by Zawia3, naming Prime Minister Mostafa Madbouly, Cairo Governor Ibrahim Saber, the Director of Legal Affairs for Cairo Governorate, and the Head of Azbakeya District in their official capacities.

The lawsuits allege that the officials unlawfully seized a heritage property in downtown Cairo valued at EGP 50 million. The property was demolished as part of a redevelopment plan, with its owners evicted without receiving legally mandated compensation. The cases demand financial compensation for the property’s expropriation in violation of the Expropriation Law.

The court announced on Sunday that it would issue a ruling on all three lawsuits on January 19.

Page from the Case Files Obtained by Zawia3
Page from the Case Files Obtained by Zawia3

The three lawsuits, numbered (1019, 1020, and 1021) of 2024, filed with the North Cairo Compensation Court, were initiated by Salah Hasballah El-Gebaly, a cassation lawyer representing the owners of Property No. 3 on Al-Maqasi Street in the Azbakeya district of downtown Cairo. The lawsuits stated that the plaintiffs own a six-story building (including a ground floor and a rooftop) spanning 916 square meters. It housed 23 commercial shops, three storage units, and 28 apartments.

According to the case documents, the plaintiffs were shocked by the issuance of Supreme Council for Urban Development Decree No. (16) of 2023 and Cairo Governorate Decree No. (1924) of 2023, which designated Ramses and Sabtiya areas in the Azbakeya district as a redevelopment zone. This year, in 2024, the first and second defendants seized and demolished the property without providing compensation.

The lawyer demanded that the defendants pay fair compensation, determined by the court, for expropriating the property without following the procedures stipulated by the Expropriation Law for Public Benefit. The lawyer requested that the compensation reflect the market value at the time of the court ruling, in addition to the rental income lost due to the deprivation of property usage since its seizure.

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Commentary from Property Owner

Helmi Radwan, one of the heirs of the building at No. 3 Al-Maqasi Street in Ramses Square, stated to Zawia3: “The Cairo Governorate seized the property, demolished it, and confiscated its contents. The Deputy Governor acts as if the property is his, even though it is a heritage building that cannot legally be demolished. The Governorate used the pretext of redevelopment for public benefit to take it, without compensating us.”

He added that he filed numerous complaints and turned to the Public Prosecutor, the Administrative Control Authority, the Administrative Prosecution, and Cairo Governorate, exhausting all channels before resorting to the courts. Despite this, the Governorate continued its actions and even delayed responding to complaints for nearly a year. He continued: “The Governorate sent employees to intimidate and threaten us, claiming this was a sovereign decision that cannot be challenged. Shockingly, some employees admitted that demolishing the building and seizing it violated the law but stated that sovereign orders must be executed even if they are illegal.”

Radwan expressed his hope for the rule of law and fair compensation for the damages suffered. He pointed out that the Cairo Governorate valued the land in Ramses Square at EGP 3,600 per square meter, while the true market value exceeds EGP 50,000 per square meter for neighboring properties, excluding the additional value of his heritage building.

Commenting on the numerous cases in Egyptian courts involving allegations of corruption and bribery in real estate and building violations, engineering expert Islam Ahmed, formerly of the Ministry of Justice’s Expert Department, told Zawia3 that many of the disasters caused by building collapses in recent years result from negligence or outright corruption by officials responsible for oversight and enforcement.

He explained: “In most cases, if not the majority, buildings are structurally unsound and fail to meet safety standards. Yet officials in local districts turn a blind eye in exchange for bribes, either to avoid performing their duties or to issue unlawful permits.”

Ahmed recalled his time at the Ministry of Justice, where he prepared tens of thousands of reports documenting building violations and structural issues. “In most cases, the officials or those issuing permits were complicit, knowingly approving licenses that contradicted the actual condition of these properties, putting citizens’ lives and public safety at risk,” he said.

In the same context, Salah Hasballah El-Gebaly, the cassation lawyer representing several property owners whose buildings were seized and demolished for public benefit without compensation, stated: “The government and the Cairo Governorate have violated the law in its application.”

He elaborated: “The law stipulates that the inventory and identification of properties and structures deemed necessary for public benefit must be conducted by a committee consisting of a representative of the entity undertaking the expropriation, a local government official, and a tax collector. This committee is required to draft a report detailing the properties, the names of their owners, and their addresses, based on on-site inspections and verification against property records.”

El-Gebaly emphasized: “The truth is that the government violates the constitution and the law. Compensation should be assessed based on prevailing market prices at the time of the public benefit decree, with an additional 20% added. However, given inflation rates, this percentage is insufficient to reflect the real value of these properties. Regardless, these procedures weren’t followed, and property owners weren’t compensated.”

He noted that during one court session, he identified 47 cases involving properties in Ramses alone that were seized and demolished without compensation, all in violation of the law and constitution. Such actions expose the government and its officials to potential legal accountability, including dismissal from office and imprisonment.

Despite government assurances of overcoming crises and enacting laws aimed at addressing widespread building violations, the volume of cases in court, as reported by Zawia3’s sources, raises questions about the enforcement of laws in Egypt and who protects citizens from public employees who abuse their power.

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