• March 9, 2010

Egypt: Brotherhood accuses gov’t of corruption, ruling party dismisses investigation

Egypt: Brotherhood accuses gov’t of corruption, ruling party dismisses investigation

CAIRO: The Brotherhood had issued a statement in Parliament calling for an inquisition into corrupt practices by the government with factories, but the ruling National Democratic Party (NDP) has turned down the request for an investigation.

The NDP majority voted in parliament on Monday to dismiss the propositions from MB members of Parliament Abbas Abdel Aziz, Farid Ismail and Azab Mustafa, after the three had submitted documents accusing the government of corruption and squandering public funds.

In a joint statement, the three MPs stated that the Abu Tartour Phosphate Company and el-Maghara Coal Project have lost LE40 billion ($7 billion), while textile companies have lost LE22 billion ($4 billion). The documents also stated that debts owed by the electricity sector have hit LE16 billion ($1 billion), according to the Central Auditing Organization (CAO).

“I’m afraid the losses indicate a government policy that aims to sell these companies,” said Abdel Aziz, in comments carried on the group’s official mouthpiece.

He also criticized the government for neglecting the recommendations put forward by the CAO concerning the management of el-Maghara Coal Project, which they said losses reached LE1.5 billion ($200 million).

“The government could have used the coal and phosphate projects to achieve economic development,” said Mustafa, however, “it mismanaged those projects.

“The government lacks proper strategy revealing the mismanagement of state funds,” Mustafa added.

Mustafa submitted a report by the CAO refuting allegations by the petroleum ministry that the phosphate project is making LE70 million in profits.

Minister of Petroleum Sameh Fahmi confirmed that technical studies by some of the biggest experts in the field of geology have proven the feasibility of the project. The minister admitted, however that the strategic planning for the project was sub-par.