VZCZCXYZ0001
OO RUEHWEB

DE RUEHEG #0183/01 0411420
ZNY CCCCC ZZH
O R 101420Z FEB 10
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0216
INFO RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHEG/AMEMBASSY CAIRO

C O N F I D E N T I A L CAIRO 000183 
 
SIPDIS 
 
E.O. 12958: DECL: 2020/02/10 
TAGS: EAID PREL PGOV EG
SUBJECT: Minister of Social Solidarity Distances Himself from MEPI 
Funding Complaint 
 
CLASSIFIED BY: Magaret Scobey, Ambassador; REASON: 1.4(B), (D) 
 
¶1. (C) Key Points: 
 
 
 
-- Minister of Social Solidarity (MSS) Ali El-Meselhi distanced 
himself from a MSS diplomatic note which took issue with MEPI 
funding of Egyptian NGOs.  He explained that the note was 
coordinated by Minister of International Cooperation Fayza 
Aboulnaga. 
 
 
 
-- El-Meselhi is supportive of U.S. funding of NGO activities and 
appreciates the rigorous U.S. oversight and monitoring associated 
with these programs.  However, he continues to have funding, 
coordination, and monitoring concerns with other donors and 
beneficiaries, particularly given Egypt's cash-based economy. 
 
 
 
 
 
¶2. (C) Comment:  Contrary to what his ministry's diplomatic note 
implied, El-Meselhi showed little interest in altering the status 
quo and seems unlikely to press us further on MEPI funding of 
non-registered NGOs.  The usefulness of El-Meshelhi's support, 
however, is limited as MOI and EGIS remain the final arbiters in 
the NGO funding and registration approval process, and both appear 
content to let applications languish or deny them without 
explanation. 
 
 
 
¶3. (C)  Ambassador met with Minister of Social Solidarity (MSS) Ali 
El-Meselhi January 28 to discuss a December 23, 2009 diplomatic 
note from the MSS which implied that in providing MEPI funds to 
non-registered NGOs the U.S. was violating GOE law. The Ambassador 
also raised continued delays faced by U.S.-based NGOs seeking to 
register in Egypt as well as several long-pending NGO requests for 
GOE approval of foreign-funded programs.  USAID Mission Director 
and Econ Counselor accompanied. 
 
 
 
¶4. (C) The Ambassador began by noting that MEPI has been funding 
programs in Egypt for many years and nothing in current MEPI 
activities represents anything new.  She added that, in response to 
GOE concerns, the U.S. had decided last year that only registered 
NGOs would be eligible to receive ESF funds while non-registered 
NGOs would continue to be eligible for MEPI and other non-ESF USG 
financial support. 
 
 
 
¶5. (C) El-Meselhi said the U.S. policy on ESF funding for 
registered NGOs was "extremely positive."  He distanced himself 
from the December 23, 2009 diplomatic note, saying that it had been 
coordinated with the Minister of International Cooperation Fayza 
Aboulnaga. The Ambassador pointed out that we do not see any legal 
impediment to funding non-registered Egyptian groups and that the 
U.S. sees the benefit of supporting civil society in broad terms. 
El-Meselhi asserted that it was not a question of whether recipient 
organizations were legal or not, but whether they made the 
appropriate notifications to the GOE.  He explained that most NGOs 
remain unregistered, and the GOE is concerned about sufficient 
coordination and monitoring of their activities, particularly since 
90 percent of all monetary transactions in Egypt are on a cash 
basis. 
 
 
 
¶6. (C) The Ambassador assured El-Meselhi that USAID and MEPI 
exercise strict oversight of funded programs.  El-Meselhi 
acknowledged this noting that "we don't question U.S. funding," but 
rather other foreign and domestic funding. He continued, "Frankly, 
I definitely know you are doing something right." 
 
 
 
¶7. (C) The Ambassador and USAID Mission Director raised with 
El-Meselhi long-pending NGO requests for MSS approval of 
foreign-funded programs, and provided a list of several such 
requests submitted more than six months ago.    They also asked 
that El-Meselhi support the registration applications of several 
U.S.-based NGO, most of which have been active in Egypt for several 
years or more.  The Ambassador stressed the importance of 
 
 
 
permitting the registering of U.S.-based NGOs, particularly in 
light of the USG's response to GOE concerns over ESF funding of 
non-registered NGOs. El-Meselhi promised to review the list of 
proposed programs awaiting approval and said he would provide a 
reply within a week.  He noted that while he remains supportive of 
U.S.-funded programs, the Minister of Interior and Egyptian 
Intelligence Services have the final say on NGO programs and NGO 
registration requests. 
SCOBEY