7 former officials to be summoned over privatization deals

Next week the Public Funds Prosecution will summon seven former officials, including a former prime minister and other ministers, who are being investigated for charges of squandering an estimated LE2 billion in the privatization of public sector companies, judicial sources have said.
According to an investigation report, of which Al-Masry Al-Youm obtained a copy, 329 public sector companies were sold to private companies owned by Egyptian and other Arab businessmen at prices much lower than their actual value.
Investigations also revealed that several of those companies were sold even though they generated large profits in the three years preceding their sales, which is a violation of the law that specifically bans the sale of companies that made profits for the last three years of their operation.
Tanta Linens Company, for example, was sold some LE90 million less than its real value, the investigations showed.
These companies' employees have said they held several meetings with former prime minister Atef Ebeid and asked him not approve the sales, presenting documents to show that their companies were making high profits.
Investigations also showed that officials from other companies deliberately made huge losses so they could be sold to foreign investors. These officials were given positions in companies owned by those same investors.
Translated from the Arabic Edition

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