A recent report by the Central Auditing Organization (CAO) unveiled financial irregularities at Egypt’s public Misr Oils and Soap Company (MOSC).
A sum of LE3.6 million in allowances to personnel and members of the board and the social insurance have been incorporated as wages, the CAO said. This comes in contravention of article 88 of law 159 for the year 1981 and article 196 of its regulation, said the report on economic performance for fiscal year ending June 30.
The report said that idle capacities reached LE7.6 million, mostly in the form of decommissioned machinery and equipment. Most of these are spare parts and packaging tools that are currently out of service.
Negative growth in capital reached almost LE2 million as a result of the company’s resort to overdraft. MOSC incurred more than LE8 million in interest.
MOSC responded to the CAO’s remarks by saying that the incorporation of LE3.6 million in allowances was approved by the board of directors last year to reward high revenues, while the decommissioned equipment will be sold at the highest possible price.
Translated from the Arabic Edition.