Lawyer sues Sisi over IMF loan

Egyptian lawyer Ali Ayoub filed a lawsuit on Monday demanding a halt to the proceedings of the government’s agreement with the International Monetary Fund (IMF) for a three-year $12 billion loan. “It is unlawful,” he argued, “as it should have been reviewed by parliament.”

Ayoub has filed the lawsuit with the Administrative Court, which is the competent judicial body to adjudicate on government decisions. The defendants are President Abdel Fattah Al-Sisi, Prime Minister Sherif Ismail, Finance Minister Amr El Garhy and Central Bank Governor Tarek Amer.

The lawsuit pointed out that the IMF loan violates Article Number 127 of the Egyptian Constitution, which stipulates that parliament’s approval is needed ahead of the agreement. He demanded a halt to proceedings until the deal is presented to parliament. “The cabinet didn’t consult parliament over the big loans or the issue of $4 billion worth of international bonds on the Irish Stock Exchange,” Ayoub added.

Article 127 of the constitution is clear that the government may not borrow, obtain funding or commit itself to a project that is not listed in the approved state budget entailing expenditure from the state treasury for a subsequent period, except with the approval of the House of Representatives.

Last Friday, the International Monetary Fund approved a $12 billion loan to Egypt, intended to support the government’s economic reform programme. It prompted criticism of the austere measures adopted by Sisi’s government in order to qualify for the loan.

Ali Ayoub is one of the lawyers involved in the lawsuit demanding the annulment of the Tiran and Sanafir border agreement, by which Egypt has transferred control of the two islands to Saudi Arabia.