Family members of 2 Mubarak-era ministers resign from Credit Agricole

Family members of two Mubarak-era ministers have left their posts on the board of Credit Agricole Egypt bank, state-run news agency MENA reported Tuesday.

The bank announced the resignation of members of the families of former Housing Minister Ahmed al-Maghrabi and former Transportation Minister Mohamed Lotfy Mansour, MENA said.

The Maghrabi and Mansour families together own 17 percent of the Cairo bank’s total capital of LE1.14 billion. The bank has a network of more than 70 branches across Egypt and operates four primary divisions: consumer, private, corporate and enterprise banking.

MENA quoted a statement from the bank as saying that Mansour resigned from his post as the CEO of the bank. His two brothers Yaseen and Youssef resigned as well from the posts as board members.

Last week, Credit Agricole Egypt announced that its board of directors has appointed Francois Edouard Drion as the bank’s new chairman of the board, replacing the former transportation minister.

MENA didn’t provide other details about other members of the two families who resigned.

Credit Agricole Egypt was established in September 2006, following the successful merger of Calyon Bank Egypt and the Egyptian American Bank.

Credit Agricole Egypt is primarily controlled by the Credit Agricole S.A., a retail banking group in France that owns 60 percent of the Egyptian affiliate. The second largest shareholder in Credit Agricole Egypt is Mansour and Maghrabi Investment and Development, which was founded by the two former ministers.

Mansour and Maghrabi in 2005 founded the bank Calyon Bank Egypt, and within a few months bought the Egyptian American Bank in a controversial deal in which many believed Calyon bought the EAB stocks at below market value. This then provoked suspicions that businessmen occupying government posts were abusing their power.

Last year, an Egyptian court sentenced Maghrabi to five years in prison on charges of profiteering and abusing public funds.

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