Shares Scheme Is Propaganda for Gamal Mubarak, Says Economic Expert

Shares Scheme Is Propaganda for Gamal Mubarak, Says Economic Expert

The economic expert and Deputy Managing Editor at Al Ahram newspaper, Mamduh Al Walei said in an exclusive statement to Ikhwanweb that the free shares scheme announced by Gamal Mubarak, the policy chief of the ruling NDP, and adopted by the government, permits for the government a variety of goals: to save it from the fix of the privatization scheme which was not implemented as a result of lack of liquidity, and the declaration of global investors not to invest outside their homes during the upcoming period.

He added it was obvious through the failure of selling Cairo Bank, and the obstacles of selling the second license of the fixed telephone, at the time when not even an interior investor saved the government from its deal with the International Bank concerning the privatization scheme.

Walei declared that the government aimed to put the people on the action side, because of the extensive criticism against the government no matter what it sells any company. So it distributes shares among people, to let 41 million people act, each on his own way.

The third aim for this project, as stated by the expert, is a political one, trying to propagate for Gamal Mubarak, to be said that he distributes wealth to the people while he is still outside the authority.

He added that Gamal Mubarak publicized this scheme in a press conference a week after the ruling NDP conference, not during the conference. Although the government asserted it studied the plan three years ago, he announced it at the same time when the prime minister was in Russia and the president in Sudan. The expert confirmed it has a close connection to succession.

The expert pointed out the failure of this project, which had been applied before in East Europe and proved to be a failure, where the people sold shares for investors cheaply, whereas if the government is to sell, it could determine an appropriate price and hold an auction to sell them. He said this project wastes the companies” values, and it embraces hazardous aspects.

The emblem of “Broaden Participation” is not actual, said Walei, because the participation means the people”s attendance at general assemblies, which will never happen since the share is small. He warned of negative effects on the workers on the long run of this project, once the Minister of Investment, Mahmoud Muhei El Deen announced that he is going to be responsible only for workers at governmental companies. Walei added as to the companies which will be sold, its large number of workers will be expelled.