Tanta company sale deemed invalid
Supreme administrative court
By: YOUM7

 

CAIRO:The Supreme Administrative Court deemed the privatization of the Tanta Company for Linen invalidin a Saturday ruling.

Court files revealed that the holding companyagreed to sell the Tanta Company for Linen onOctober 27 2004 and finalized the sale onFebruary 9 2005. According to the court,the way in which the companywas sold to Saudi businessman Abdel Elah al-Kaaky, was unlawful.

The decision of then-prime minister Ahmed Nazif  to amend the laws of the public sector wereannounced on June 1 2006 and included article 26, which refers to the right of selling publiccompanies. The court revealed that the decision to sell the companywas based on this amendment before its publication and prior to its effective date, nullifying the sale.

The court added that purchase process conflicts with article 36 of the United Nations Convention against Corruption of which Egypt is a signatory, afterpresidential decree 307 in 2004.

The company was sold for an incredibly low cost, with land valued at 95 million EGP being sold for 39 million EGP, according to court files.

The worker’s dismissal was also deemed unconstitutional by the court, as the constitution states that“work is a constitutional right and no one shall force the worker to leave his job without legal justification.”

The agent of the Saudi investor, Mohamed al-Sehy, told Youm7that the court’s decision does not harm the investor, as the verdict restores the rights of the contactors,and the moneyinvested in the company. As a result,the Egyptian government has to pay back about 500 million EGP to al-Kaaky.

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