Former Minister of Trade proposes $35 million settlement for illicit gains
Rachid Mohamed Rachid, Former Minister of Industry and Foreign Trade - YOUM7 (Archive)

CAIRO: Former Minister of Industry and Foreign Trade Rachid Mohamed Rachid proposed a settlement of 250 million EGP (U.S. $36 million) to reconcile with the Illicit Gains authorities, Youm7 reported on Monday.

His proposal was referred to Prosecutor General Hisham Barakat.

Rachid is accused of illegally gaining more than 500 million EGP through the EFG-Hermes investment bank. The ongoing case was referred to the criminal court earlier this month.

The state says Rachid took advantage of his position as minister and member of the former National Democratic Party, where he applied for and obtained a 40 million EGP bank loan to buy shares in EFG-Hermes, provided fraudulent collateral, and violated banking conventions. He is estimated to have embezzled 522 million EGP.

According to the Illicit Gains Authority’s report into Rachid’s finances, the former minister sold almost 16 million shares for 700 million EGP in 2007, after having purchased them for 178 million EGP, which left him with half a billion EGP in profit.

Rachid fled Egypt in 2011 to Dubai, then to an unknown country. His daughter is also wanted as an accomplice in the case. Both are fugitives wanted by Interpol for illegally seizing state funds, manipulating sensitive stock market information and laundering money to Cyprus.

 Additional reporting by Ibrahim Kassem and Nourhan Hassan.

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