Fayza aboulnaga Live Blog

Sources in the ministries of insurance and social affairs have told Egyptian newspaper Al Masry Al Youm that the ministries are currently reviewing license applications for a number of foreign civil society organisations, suggesting a resolution to a crisis that has strained Egypt-US ties may be in the works.

The investigation into NGOs began shortly after the ousting of President Hosni Mubarak a year ago and was instigated by International Cooperation and Planning Minister Fayza Aboul Naga. It has involved numerous Egyptian NGOs but has focused on US organisations, including the National Democratic Institute and International Republican Institute. Nineteen Americans, of whom at least six actually remain in Egypt, have been charged in the case.

The investigation has hinged on the fact that the American NGOs were allowed to operate but never officially register with the government, a status that allowed them to be prosecuted at any time.

A top Republican lawmaker called for "punitive action" Thursday against Egyptian officials for the crackdown on US democracy advocates.

Representative Ileana Ros-Lehtinen, who chairs the House Foreign Affairs Committee, singled out Egypt's Minister of International Cooperation Fayza Abul Naga.

"The Egyptian government's actions cannot be taken lightly and warrant punitive actions against certain Egyptian officials, and reconsideration of US assistance to Egypt," Ros-Lehtinen told a House hearing.

"While the Supreme Council of the Armed Forces bears ultimate responsibility for this strain in relations, the minister of international cooperation should not be exempt from punitive actions."

It was the latest in a drumbeat of congressional outrage over raids on pro-democracy groups in Egypt, and charges against American activists.

US lawmakers from both parties have stepped up their warnings that Egypt's crackdown will force a review of the $1.3 bn in US military aid to the longtime Middle Eastern ally if the crisis is not quickly resolved.

"I truly believe we are approaching a precipice beyond which our bilateral relations could suffer permanent damage," Democratic Representative Gary  Ackerman said Wednesday.

- Agence France Presse

The United States and Israel funded pro-democracy organisations to create chaos in Egypt, a government minister told prosecutors investigating NGOs, state media reported on Monday.

Fayza Aboulnaga, the minister of planning and international co-operation, testified to investigators in October that the uprising against ex-President Hosni Mubarak caught the US by surprise and "that was when the United States decided to use all its resources and instruments to contain the situation and push it in a direction that promotes American and also Israeli interests".

The state media article was reported by the AFP news agency.

In remarks on Monday, Aboulnaga said that the evidence in the probe showed "a clear desire and determination to abort any chance for Egypt to advance as a modern democratic nation".

Aboulnaga is one of only two cabinet ministers to have survived from Mubarak's regime. She is seen to be the driving force behind an investigation into numerous Egyptian and foreign pro-democracy NGOs that has led to the indictments of 43 people, including 19 Americans.

Aboulnaga has said the NGOs violated Egyptian law by illegally receiving funds, supporting groups for political reasons and never officially registering with the government. American analysts say Aboulnaga was angered when the United States, after Mubarak's fall, dispersed roughly $40 million directly to US and Egyptian NGOs rather than sending the money through the government.