EIPR Report Reveals $10 Billion Lost in Corrupt Gas Contracts as Daily Blackouts Spread in Egypt

[Logo of Egyptian Initiative for Personal Rights. Image from eipr.org] [Logo of Egyptian Initiative for Personal Rights. Image from eipr.org]

EIPR Report Reveals $10 Billion Lost in Corrupt Gas Contracts as Daily Blackouts Spread in Egypt

By : Jadaliyya Reports

[The following report was published by the Egyptian Initiative for Personal Rights on 13 March 2014]

Egypt lost $10 billion in gas revenues from 2005-2011, according to a report launched yesterday by EIPR. Contracts signed during the Mubarak years allowed the export of billions of cubic metres of underpriced gas to Jordan, Spain and the Israeli state.

Some of the individuals behind these deals were convicted of corruption. EIPR`s new report uses court data to quantify the revenues lost to Egypt by exporting under-priced gas. One of the report’s findings is that during the six year period (2005-2011) of selling gas abroad for a very low price, Egypt lost more than double the country`s annual health expenditure. Instead, it effectively subsidised the Spanish, Jordanian and Israeli economies.

Egypt is now facing a drastic energy shortage, with daily blackouts interrupting the lives of millions. Negotiations have begun over importing gas from Israel and the Gulf states, at many times the price it was previously exported. The seeming shortage of indigenous energy resources is leading to controversial proposals to import coal, build nuclear plants or expand hydraulic fracking for shale gas.

Structurally, the same conditions that allowed the problematic contracts to be signed in the first place remain today: oil and gas contracts remain secret and confidential; public oversight and accountability is non-existent; and there is no public debate over import or export prices of gas.

A panel discussion titled “Fuelling corruption: Gas and Reconciliation” took place yesterday to explore how Egypt`s economy is affected by the report`s findings. The panelists were political economist at Stanford University and report co-author Dr Amr Adly, energy expert, author of The Oil Road and report co-author Mika Minio, and economic researcher and journalist in al-Shorouk newspaper Wael Gamal.  The panel was chaired by EIPR’s research director Abdou al-Bermawy.

Dr. Adly explained that  this research started in 2011, but the report`s launch  was repeatedly postponed following the discovery of new evidence and documents when the “Mubarak black box” was open in the aftermath of the 2011 revolution. “One of the court cases we examined included over 2500 pages of difficult-to-read handwritten testimonies.”

Mika Minio-Paluello, co-author of the report, said “I`ve analysed oil and gas contracts from Uganda, Kazakhstan and Congo, and I`ve never seen a country ripped off this badly. The Egyptian people are paying for elite corruption with blackouts, blackmarket fuel and a collapsing economy. The solutions lie in democratic accountability over all contracts and a rapid transition to renewable energy.”Minio added “The same situation continues today. The contracts remain secret. Accountability still does not exist. In the past we accessed some information  through court cases brought by third parties. But  the new amendments to the investment law undermine citizen engagement by  restricting the right to challenge contracts in court.”

The report highlights failures in Egyptian oil and gas contracts regarding sovereignty, resource conservation and the environment. It makes proposals for energy and revenue reform, to prevent future corruption, energy failures and mismanagement of natural resources.

Wael Gamal explained that the energy issue will be a major cause of suffering in Egypt in the future. Although the main controversy over gas exports focused on Israel because of the political sensitivity,  Egypt had lost more money through exports to Spain. Gamal added that “despite the importance of having a figure for losses which this report provides, the real cost  of corruption in gas deals will exceed the $10 billion.” Gamal argued that when  Egypt has a government  willing to carry out real development projects, it risks facing a lack of energy resources

[Click here to read the full report in Arabic]

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Past is Present: Settler Colonialism Matters!

On 5-6 March 2011, the Palestine Society at the School of Oriental and African Studies (SOAS) in London will hold its seventh annual conference, "Past is Present: Settler Colonialism in Palestine." This year`s conference aims to understand Zionism as a settler colonial project which has, for more than a century, subjected Palestine and Palestinians to a structural and violent form of destruction, dispossession, land appropriation and erasure in the pursuit of a new Jewish Israeli society. By organizing this conference, we hope to reclaim and revive the settler colonial paradigm and to outline its potential to inform and guide political strategy and mobilization.

The Israeli-Palestinian conflict is often described as unique and exceptional with little resemblance to other historical or ongoing colonial conflicts. Yet, for Zionism, like other settler colonial projects such as the British colonization of Ireland or European settlement of North America, South Africa or Australia, the imperative is to control the land and its resources -- and to displace the original inhabitants. Indeed, as conference keynote speaker Patrick Wolfe, one of the foremost scholars on settler colonialism and professor at La Trobe University in Victoria, Australia, argues, "the logic of this project, a sustained institutional tendency to eliminate the Indigenous population, informs a range of historical practices that might otherwise appear distinct--invasion is a structure not an event."[i]

Therefore, the classification of the Zionist movement as a settler colonial project, and the Israeli state as its manifestation, is not merely intended as a statement on the historical origins of Israel, nor as a rhetorical or polemical device. Rather, the aim is to highlight Zionism`s structural continuities and the ideology which informs Israeli policies and practices in Palestine and toward Palestinians everywhere. Thus, the Nakba -- whether viewed as a spontaneous, violent episode in war, or the implementation of a preconceived master plan -- should be understood as both the precondition for the creation of Israel and the logical outcome of Zionist settlement in Palestine.

Moreover, it is this same logic that sustains the continuation of the Nakba today. As remarked by Benny Morris, “had he [David Ben Gurion] carried out full expulsion--rather than partial--he would have stabilised the State of Israel for generations.”[ii] Yet, plagued by an “instability”--defined by the very existence of the Palestinian nation--Israel continues its daily state practices in its quest to fulfill Zionism’s logic to maximize the amount of land under its control with the minimum number of Palestinians on it. These practices take a painful array of manifestations: aerial and maritime bombardment, massacre and invasion, house demolitions, land theft, identity card confiscation, racist laws and loyalty tests, the wall, the siege on Gaza, cultural appropriation, and the dependence on willing (or unwilling) native collaboration and security arrangements, all with the continued support and backing of imperial power. 

Despite these enduring practices however, the settler colonial paradigm has largely fallen into disuse. As a paradigm, it once served as a primary ideological and political framework for all Palestinian political factions and trends, and informed the intellectual work of committed academics and revolutionary scholars, both Palestinians and Jews.

The conference thus asks where and why the settler colonial paradigm was lost, both in scholarship on Palestine and in politics; how do current analyses and theoretical trends that have arisen in its place address present and historical realities? While acknowledging the creativity of these new interpretations, we must nonetheless ask: when exactly did Palestinian natives find themselves in a "post-colonial" condition? When did the ongoing struggle over land become a "post-conflict" situation? When did Israel become a "post-Zionist" society? And when did the fortification of Palestinian ghettos and reservations become "state-building"?

In outlining settler colonialism as a central paradigm from which to understand Palestine, this conference re-invigorates it as a tool by which to analyze the present situation. In doing so, it contests solutions which accommodate Zionism, and more significantly, builds settler colonialism as a political analysis that can embolden and inform a strategy of active, mutual, and principled Palestinian alignment with the Arab struggle for self-determination, and indigenous struggles in the US, Latin America, Oceania, and elsewhere.

Such an alignment would expand the tools available to Palestinians and their solidarity movement, and reconnect the struggle to its own history of anti-colonial internationalism. At its core, this internationalism asserts that the Palestinian struggle against Zionist settler colonialism can only be won when it is embedded within, and empowered by, the broader Arab movement for emancipation and the indigenous, anti-racist and anti-colonial movement--from Arizona to Auckland.

SOAS Palestine Society invites everyone to join us at what promises to be a significant intervention in Palestine activism and scholarship.

For over 30 years, SOAS Palestine Society has heightened awareness and understanding of the Palestinian people, their rights, culture, and struggle for self-determination, amongst students, faculty, staff, and the broader public. SOAS Palestine society aims to continuously push the frontiers of discourse in an effort to make provocative arguments and to stimulate debate and organizing for justice in Palestine through relevant conferences, and events ranging from the intellectual and political impact of Edward Said`s life and work (2004), international law and the Palestine question (2005), the economy of Palestine and its occupation (2006), the one state (2007), 60 Years of Nakba, 60 Years of Resistance (2009), and most recently, the Left in Palestine (2010).

For more information on the SOAS Palestine Society 7th annual conference, Past is Present: Settler Colonialism in Palestine: www.soaspalsoc.org

SOAS Palestine Society Organizing Collective is a group of committed students that has undertaken to organize annual academic conferences on Palestine since 2003.

 


[i] Patrick Wolfe, Settler Colonialism and the Transformation of Anthropology: The Politics and Poetics of an Ethnographic Event, Cassell, London, p. 163

[ii] Interview with Benny Morris, Survival of the Fittest, Haaretz, 9. January 2004, http://cosmos.ucc.ie/cs1064/jabowen/IPSC/php/art.php?aid=5412