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Mubarak-linked chairman of land developer SODIC resigns, real estate shares down Rasekh, the chairman of SODIC, Egypt's largest land developer and father-in-law to Alaa Mubarak, resigns from his post and real estate shares go down
The chairman of Egyptian real estate developer, SODIC stepped down the firm said in a statement, adding to a string of resignations at property firms scrambling to distance themselves from the country's deposed president. "Mohamed Magdi Hussein Rasekh, the chairman of SODIC, has offered his resignation from the company's board," the company said in a brief statement to the stock exchange. SODIC board meeting records show that Rasekh had been absent from at least the last four meetings and many analysts had already suspected he would leave the company. The shares of the company have seen a 1.71 per cent decrease after the news caused the whole real estate sector to drop. SODIC, Egypt's third-biggest property developer, has not been directly implicated in any of the land sale scandals that have torn through a once-booming, but corrupt real estate sector since a popular uprising toppled former president Hosni Mubarak on 11 February. The firm's chairman, however, is Alaa Mubarak's father-in-law (the ousted president's eldest son); a tie some analysts believe will expose SODIC to deeper investigations as the patronage network with Mubarak's family at the axis unravels. "When you have certain political affiliations at the senior level in the company it can become a distraction. I think the company wants to focus on its core business," said Naeem analyst, Hisham Halaldeen. Two former housing ministers under Mubarak, Ibrahim Soliman and Ahmed El-Maghrabi, have been arrested on charges of corruption. Soliman is accused, among other things, of selling land to SODIC for less than it's worth. SODIC denies any wrongdoing in the contract and says all its land deals have been fair and legal. No charges have been brought against the firm, which has launched an advertising campaign emphasising its positive role in Egypt's economy. Courts have already scrapped land deals for Egypt's two largest developers, Talaat Moustafa Group and Palm Hills Development Co. Both firms had senior staff closely affiliated with Mubarak's now defunct National Democratic Party. Another real estate firm, Egyptian Resorts removed Ibrahim Kamel from its board last month. Kamel, a senior member of the old ruling party, is now in detention on charges of inciting violence against peaceful protesters.
