CAIRO -
Amid repeated recent warnings of the existence of what some have described as a "mafia" monopolist in the Egyptian market, defying government censorship, disrupting state agencies and igniting prices;
Observers wonder about the ability of the executive and oversight bodies to confront them and play their role in light of a deep economic crisis.
The journalist - affiliated with the state - Nashat Al-Daihi said that the recent price hikes are "intentionally fabricated, and this matter may be planned, and there is a mafia trying to obstruct the state."
On the other hand, a former official in the Egyptian Ministry of Supply, who spoke to Al-Jazeera Net, believes that the "mafia" has returned strongly as it was during the era of former President Muhammad Hosni Mubarak, stressing that the ministry has a successful experience in confronting that "mafia" in 2012.
Opinions were divided about the formations of that "mafia";
While some see them as "groups hostile to the state", a political observer speculates in a private interview that there may be "new centers of power" within the state that impede the tools of control over the Egyptian markets, calling for a supervisory investigation.
A third trend sees them as "just big greedy traders".
Attempts to attract the public with discounted offers, despite the high prices (Al-Jazeera)
Activate confrontation
The Egyptian government is moving in this file on several tracks, including the following:
Launching a national project: On February 12, Prime Minister Mostafa Madbouly announced the start of the "National Project for Strategic Warehouses for Commodities", which was decided to be implemented in several governorates with the aim of storing basic commodities through the Ministry of Supply and Internal Trade in order to enhance food security in the country.
Providing alternatives: President Abdel-Fattah El-Sisi directed the expansion of exhibitions and fixed and mobile outlets to provide food commodities to citizens at reduced prices of up to 30% and with appropriate quality. The "Welcome Ramadan" exhibitions started early, which have now reached 341 across Egypt.
Activating control methods: The Egyptian government has a number of oversight agencies to confront monopolists and exorbitant prices, the most prominent of which are: the Competition Protection Agency, the Consumer Protection Agency, and the General Administration of the Supply Police, which carry out continuous campaigns, but they are still insufficient, according to observers.
Stimulating the religious faith: The Ministry of Endowments, in cooperation with Al-Azhar, recently intensified the activity of their preachers in talking about the prohibition of exploiting crises, exaggerating prices, and monopolizing.
New "whales".
For his part, Abdel Tawab Barakat, advisor to the former Egyptian Minister of Supply in 2012, and assistant professor at the Agricultural Research Center in Cairo;
That Egypt returned to the era before the revolution of January 25, 2011, when every commodity had a group of “whales” numbered on the fingers of one hand, linked to political relations with the ruling regime, and monopolized everything, which created a “mafia” for a number of commodities;
Like wheat and sugar.
Barakat told Al-Jazeera Net that "the current government is using its media arms that are trying to "suspend" the failure to provide basic commodities and control prices on the peg of war in Ukraine at times and the Corona pandemic at other times, along with the greed of merchants, and recently the "mafia". inside it.”
Barakat explains that state companies - specifically affiliated with the military establishment - are the ones that control everything, and control the import of wheat, sugar, edible oil, infant formula, frozen meat, frozen poultry and fish.
Thus, the former advisor says that these institutions "are the ones that should be asked about everything so that the Egyptians know how the monopoly and corruption "mafia" that existed during the era of former President Mubarak were allowed to be produced, and who is now allowing the creation of many crises in rice, sugar, frozen meat and oil. food and poultry feed?
The Egyptian academic, who worked in the country for a year, asked: How is it allowed to import frozen poultry now, even though the Poultry Industry Protection Law prevents this?
How can rice be bought from farmers at low prices not exceeding 6850 pounds per ton and under the forced supply system, then sold to the consumer at a high price or exported to Libya and the Gulf countries despite a decision banning its export.
He said that this policy transformed Egypt from a self-sufficient country to an importer, and caused the price to rise recently to 25 pounds and the disappearance of rice from the market.
He asked: Is the regime accusing farmers and merchants of fabricating the crisis an attempt to cover up other things happening behind the scenes?
Regarding their experience in 2012, in confronting the “mafia,” Barakat said, “The late President Mohamed Morsi pursued a policy of enabling farmers to access markets and buy wheat, rice, cotton, cane, and sugar beets at remunerative prices, and stopped the monopoly and corruption mafia, and decided to buy live meat from Sudan through the Supply Commodities Authority At a price of 30 pounds, and offered it to the consumer at a price of 31 pounds, and stopped the meat mafia, and decided to buy wheat from farmers at a price higher than the international price, so local production increased, and the wheat mafia stopped until mid-2013.
According to Barakat, the Ministry of Supply in 2012 bought rice directly from farmers at a price of 2050 pounds per ton, which is higher than the price imposed by merchants at 700 pounds, then offered it to the citizen at a price of 1.5 pounds, and thus the farmer profited, and the citizen did not suffer from the high price.
Edible oils are witnessing a significant increase in prices recently in Egypt (Al-Jazeera)
Big monopoly
For his part, politician and trade unionist Ahmed Rami Al-Houfi says that the current scene is governed by two indicators:
The first: the absence of the political will of the authority to confront what is described in the media as the “mafia” or “monopolides,” adding that if the state wanted to oppress these people, it is capable, as it did with other businessmen who were not involved in anything like Safwan Thabet and his son.
The second indicator - according to Al-Hofy, who previously held the position of treasurer of the Egyptian Pharmacists Syndicate - the emergence of serious question marks about the state's indolence in front of the monopolists, which indicates the possibility of the existence of what he described as "new centers of power" standing behind those from within the state, especially since there is no A businessman can now challenge her for fear of imprisonment.
Al-Hofy asked: "Where is the Administrative Control Authority and all the oversight agencies from all this systematic price hike? Is there really someone who restricts the hands of the flabby agencies in the first place from pursuing the monopolists?"
Mahmoud Al-Askelani, head of the "Citizens Against Expensive Consumer Protection" association (civil society), revealed the existence of what he described as a "large monopolistic cartel that controls prices in Egypt," stressing the importance of starting an investigation and pursuing it.
Al-Asqalani accused - in a press statement a few days ago - what he described as "senior merchants" of causing the crisis, saying, "It is not possible to control the monopolistic rice market in light of the presence of a large monopolistic cartel that receives instructions and prices to raise and lower, withhold the commodity and thirst the market in light of weak supervision and the lack of supply inspectors." ".
Political security at the expense of the economy
For his part, the director of the Al-Shehab Center for Human Rights, Khalaf Bayoumi, explains - in an interview with Al-Jazeera Net - that the solution lies in stopping interest in political security at the expense of economic security.
Bayoumi called for opening the public sphere to bring about a rapid political breakthrough, in parallel with the launch of media freedoms, and the rehabilitation of professional syndicates as well as civil society institutions, to create a balance in society that can confront the spreading "mafia" that has succeeded in "twisting the arm of the state" many times due to the government's failure to deter corruption.
Bayoumi stresses the importance of amending the "Illegal Gain" law to be able to confront the expected wealth of some in light of what is being observed from the expansion of the power of monopolists and the absence of government oversight agencies from performing their role, which threatens anti-corruption systems or attempts to establish values of integrity and transparency.