egypt MILITARY

ATTENTION: A soldier in front of a polling station last November. Calls for reforms have also been heard in the military. REUTERS/Ahmed Jadallah

Rank and file Egyptian servicemen see the country’s as their own chance to transform In ’s military, a march for change By marwa awad cairo, april 10, 2012

n a warm Wednesday morning last October, around 500 Egyp- tian army officers based at the Air Defence Institute on the out- Oskirts of staged a mini revolt. According to a lieutenant colonel with direct knowledge of the protest, the men were angry about the punishment given to a fellow officer by his superiors. After refusing to train, the officers demanded to meet either , the head of Egypt’s military

SPECIAL REPORT 1 EGYPT MILITARY In Egypt’s military, a march for change

tion, holding regular meetings with military units in an attempt to boost morale and as- sure soldiers that their salaries will be raised and their concerns addressed, military lead- ers and mid-ranking officers who have at- tended the meetings said. That seems to have placated the dis- gruntled officers, who say they will hold off on pushing their demands further until the ruling military council hands over power to an elected civilian government. But they in- sist they need real change. “We have a moral obligation to remain steadfast and support the process,” one colo- nel said, echoing a widely held view. “But when we return to our barracks ... com- manders will have to address our demands.” MEET AND GREET: Army boss Tantawi (left), in this image taken from Egyptian television in January last year, has tried to reassure the rank and file.REUTERS/Egyp tian State TV FACTORIES AND LAND Numbering at least 468,000 men – officials refuse to give the exact number saying it and in effect the country’s acting president, leagues see Egypt’s revolution as their own could hurt national security – Egypt’s com- or his second in command. They wanted to chance to win better treatment, salaries, and bined army, air force, air defence command, meet the commanders, they said, to make improved conditions and training. They are navy and paramilitaries make up the larg- the case for better treatment. tired, they said, of a few very top officers be- est military force in the Arab world. More “Their reasoning was: Egypt is having a coming rich while the vast majority of of- than half of those in uniform are conscripts. revolution and they too have demands,” the ficers and ordinary soldiers struggle. Senior military officers have dominated lieutenant colonel said. As the military and the Muslim Brother- Egypt’s politics and large chunks of its The rebellion, unreported before now hood both press their own candidates ahead economy since seizing control in a 1952 and confirmed by three other officers in the of the presidential elections scheduled for coup. Just as Mubarak did, Tantawi presents unit, lasted several days. As Egyptians were May and June - former intelligence chief Egypt’s armed forces as a bulwark against calling for quicker and deeper change – de- entered the race as the ar- the spread of Islamism and potential chaos. mands directed at the military council that my’s choice last week and Khairat al-Shater, The military, one general said, is the “only runs the country – at least one part of the the Brotherhood’s deputy, two weeks ago - competent and long-standing institution” country’s military was itself split. the tensions in the lower ranks shed light capable of maintaining bilateral relation- The popular protests that ousted Hosni not only on the country’s most powerful in- ships with other countries. Western diplo- Mubarak last year were rooted in the yawn- stitution but on Egypt itself. mats mostly agree with that assessment. ing gap between rich and poor, and the “Military ranks struggle like the rest of One of the keys to the military’s power is desire to get rid of a leader about to enter Egyptians because, like Egyptian society, its grip on business, which was strengthened his fourth decade in power. The wealth in the wealth of the military is concentrated at after Egypt’s 1979 peace deal with Israel. Egypt was, and is, controlled by a small and the top and does not trickle down. You have Under that accord, the military had to shrink often uniformed elite. To most Egyptians, to reach a specific rank before wealth is un- its forces. But instead of sacking hundreds Mubarak, a career officer in the air force, was locked,” one said. of thousands of men, commanders opened both symbol and cause of those inequities. The military declined to comment on the factories to employ them. Those plants now As in the country, so in the barracks. Alexandria incident or any other allegations produce everything from components for Over the past six months, more than a dozen in this article. Tantawi, his Chief of Staff ammunition to pots and pans, fire extin- serving or recently retired mid- and lower- Sami Annan and other top commanders guishers, and cutlery. The military also runs ranking officers have said they and their col- have moved to contain the officers’ frustra- banks, tourism operations, farms, water

SPECIAL REPORT 2 EGYPT MILITARY In Egypt’s military, a march for change

treatment plants, a petrol station chain, con- The armed forces will Major General Nabil Amer said in De- struction firms, and import companies. not allow any interference in its cember, referring to limitations on imports Businesses owned solely by the military business projects. This is a matter and technology set by the 1979 peace deal. are exempt from tax, and often built on the of national security. “Most of AIO’s revenue is spent on military backs of poorly paid conscripts, who make research and the development department.” between $17 and $28 a month, although Mahmud Nasr Military leaders point to businesses like they are fed by the army and receive basic assistant on financial affairs to Field Marshall AIO as proof that the $1.3 billion in mili- medical help. “A conscript goes into the Mohamed Hussein Tantawi tary aid Egypt receives every year from the army less for training, and more for working is not enough for the country in one of the military factories or business to keep up with rivals such as Israel and Sau- schemes,” said Ahmed Naggar, an economic di Arabia. Many soldiers feel the U.S. money analyst at the Ahram Centre for Political benefits American arms manufacturers and and Strategic Studies. forces Egypt to buy outdated weaponry. Khalil Kandil, chairman of the Chamber Egypt, they say, needs to be able to make its of Metallurgical Industries, said the armed own money to advance. forces enjoy another big advantage: “Who Military leaders boast that their business- is asking the military factory to pay back its es help the country. Mahmud Nasr, Tan- investments and to pay taxes and to pay for tawi’s assistant on financial affairs, said the natural gas and electricity? They can keep army has given the state 12 billion Egyptian losing (money) for years.” pounds ($1.99 billion) since early last year. Opposition politicians and many ordi- “The armed forces will not allow any in- nary Egyptians want the military’s budget terference into its business projects. This is a and economic and land holdings to be made matter of national security,” said Nasr. public. But senior military figures want to Now that the and protect their position and argue that Egypt’s other Islamist parties control the assembly new constitution must shield the military that is drafting a new constitution, the mili- from the instability of political change. PRODUCTION LINE: Businesses such as the tary is determined to protect its role. Analysts say the military establishment is Arab International Optronics (AIO) factory “Previously the military budget was likely to retain significant powers, no matter which produces solar panels are needed to keep subject to specific laws and was not in any who wins the two-round presidential election. the military competitive, senior officers say. constitution,” said General Mamdouh Sha- Disentangling the military from Egypt’s REUTERS/Asmaa Waguih hine, who is responsible for legal affairs on economy and institutions could take years. the Supreme Council of the Armed Forces, Zeinab Abul Magd, economy professor at which has run Egypt since Mubarak’s ouster. Oberlin College in the United States, es- den at its entrance. The factory, a joint ven- “But now we want to bring it under the new timates the military controls about a third ture between the military, which owns 51 constitution to ensure stability. By adding of the entire economy. Egypt’s land plan- percent of the firm, and France’s Thales, budgetary clauses to the constitution, I am ning authority says the armed forces have de was founded in 1987 and makes and up- simply asserting a reality that has existed for facto control over all unused land in Egypt, grades military equipment such as thermal a long time. What is the problem with that?” or about 87 percent of the country. Civilian imagers and tanks. It exports to Britain, The aid rankles civilian leaders as well. projects almost always need military consent France, Germany, Libya, and In 2009, according to a U.S. embassy cable in case there is a risk to national security. the United Arab Emirates, makes enough obtained by WikiLeaks, Egypt’s then prime Retired senior officers often hold powerful money to fund itself, and employs 400 staff, minister met U.S. officials to positions in civilian institutions; an Egyptian most of them trained abroad. Staff benefits ask for $50 million in development funds. official said this practice will continue. include free transport, free meals and half But he knew the government was also ask- of the cost of annual haj pilgrimages. ing for military funding. AMERICAN DOLLARS “The company was founded when tech- “I sometimes feel like I am competing Arab International Optronics (AIO) sits nology was hard to get from abroad because with Field Marshall Hussein (Tantawi) on the outskirts of Cairo, a beautiful gar- of political constraints on Egypt,” AIO boss and he is winning,” Nazif, who was given a

SPECIAL REPORT 3 EGYPT MILITARY In Egypt’s military, a march for change

suspended jail sentence for corruption after Mubarak fell, told embassy officials. “A SYSTEM OF PATRONAGE” The spark for the soldiers’ rebellion in Al- exandria was a brutal episode in Cairo. On Oct. 9 last year, a group of Coptic Chris- tians converged on Cairo’s television station to protest at the burning of a church. In a neighbourhood called Maspero, the pro- testers clashed with soldiers; about 25 civil- ians were killed. The army says soldiers were also killed in the violence. The lieutenant colonel with direct knowledge of the rebellion at the Air Defence Institute said one officer and 22 soldiers died. Those who survived were se- riously injured and some were disabled, ac- cording to a source at the military judiciary. Among other things Air Defence Institute FLASHPOINT: A protester injured during a clash with riot police in Cairo last October. REUTERS/ officers demanded was financial compensa- Mohamed Abd El-Ghany tion for the families of those dead. Money has long been the cause of frus- tration in the lower ranks of Egypt’s military. so they could respond more immediately in ranks, according to mid-ranking officers. “The army is the richest institution in a crisis. While most soldiers and officers are reli- Egypt, yet a large group of officers feel dis- Low-level officers say the high command gious, the military does not allow religious enfranchised,” said a retired general in Cai- has allowed all those grievances to fester. organisations to set up within its ranks. ro. The wealth, he said, “is concentrated in The unspoken rule, said the lieutenant Leaders of the Brotherhood have stressed about 15 percent of the army’s officer corps, colonel, dictates that soldiers “stay away from the need to work with the military. But the upper ranks, who remain loyal through a politics or organised religion, don’t outshine Brotherhood’s decision to enter the presi- system of patronage.” your commander, don’t think about improv- dential race worries the military leadership. Elite officers can make millions of dol- ing the system.” Senior Brotherhood figures have also said lars, according to junior officers, get access After attending an operation on Jan. they will amend the new constitution before to special clubs and seaside resorts and retire 17 that combined units of the three main the end of the current parliamentary period. into cushy corporate jobs or political posi- branches of Egypt’s Second Field Army - air In the army-run International Medical tions. A low- to mid-level officer gets about defence, air force and infantry - Tantawi de- Centre where former president Mubarak 2,500 pounds ($414) a month before bo- fended the military’s training methods, and has been held during his trial, a major’s cell nuses, about the same as a Cairo taxi driver. promised salary increases. “What we saw phone rings with the melody of a popular There are also problems with training, today in the drill of the accuracy of fire and song that honours the people who died in which four senior officers said was evident efficiency in performance reflects the high last year. “My country, my in the poor handling of tanks and armoured capacity the armed forces have achieved.” country, I love you my country,” the lyrics go. personnel carriers on the streets during last “When you are in the seat of power for “TIME TO SPEAK OUT” year’s protests. At Maspero, inexperienced so long, you cease to have a vision to make soldiers in charge of armoured carriers in- To get its way in the new Egypt, the mili- things better,” the major says. jured protesters inadvertently, one recently tary will need to rely on the Islamist parties, Officers with knowledge of the military retired general responsible for devising such as the Muslim Brotherhood, which council say it could be reshuffled after the training systems for the military said. now control parliament. It has kept up a election. But don’t expect a revolution. “It The protesters in Alexandria also wanted strong intelligence network to ensure the is like an in-house replacement, like what the chain of command to be decentralised, Brotherhood does not infiltrate military happens on a board of directors who offer

SPECIAL REPORT 4 EGYPT MILITARY In Egypt’s military, a march for change

VICTORY? Ahmed Shouman, a soldier, flashes a victory sign as he joins protesters inT ahrir Square in Cairo last November. REUTERS/Mohamed Abd El-Ghany

their CEO a retirement package,” the gen- crowds demanding an end to Mubarak’s criticising the military. A military court sen- eral said. rule. Shouman was tried for quitting his tenced him last week to six years in prison. Could mid- and low-ranking officers at- army unit without permission, found guilty tempt a takeover? Insiders doubt it. but then pardoned. “You must remember that at the end of He returned to Tahrir Square last No- FOR MORE INFORMATION: the day, the army is patriotic,” said the colo- vember. “It is time we spoke out against the Marwa Awad nel. “Many of the rank and file refuse to rebel wrong and corrupt,” he told Reuters then. [email protected] because they feel the country depends on “We must stop being afraid. The military Simon Robinson, Enterprise Editor, them and they are the last institution stand- council does not represent the rest of the Europe, Middle East and Africa: ing. They want change but they would rather army. I call on the military council to step [email protected] wait until a civilian government is formed.” down.” Sara Ledwith, Assistant Enterprise Editor: Last year, as the protests gathered pace, Shouman was re-arrested two months [email protected] Ahmed Shouman, a Cairo-based ma- ago for “actions that harmed the armed Michael Williams, Global Enterprise Editor: jor, handed in his weapons and joined the forces” including talking to the media and [email protected]

© Thomson Reuters 2012. All rights reserved. 47001073 0310. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. ‘Thomson Reuters’ and the Thomson Reuters logo are registered trademarks and trademarks of Thomson reuters and its affiliated companies.

SPECIAL REPORT 5