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Egyptian court explains re-nationalisation judgement Administrative court says the three companies restored to public ownership last week had been acquired in questionable, non-transparent ways
Last Wednesday, Egypt's administrative court suspended the privatisation contracts of three formerly state-owned companies and returned them to public ownership. The court Sunday explained the reasons behind its re-nationalisation decision. The court said that though sales to private owners was necessary due to the conditions placed on Egypt by international institutions in order to secure loans, post-uprising review of privatisation procedures of the Mubarak era had raised questions over corruption, conflict of interests and a lack of transparency. The court's decision also cleared the companies of all debts and mortgages resulting from their privatisation, and restored the rights of the companies' workers. The Egyptian Center for Economic and Social Rights (ECESR), which filed the suit, issued a document listing the market price for each company and the actual sum at which it was sold. Shebin Textile was estimated at LE600 million but sold for LE 174 million, according to ECESR figures. Likewise, Al-Nasr Company for Steam Boilers and Pressure Vessels was sold for $17 million but estimates from the Central Auditing Agency said that it was worth double that sum.
