With business tycoon Ali El-Safadi finally behind bars, the oft-discussed issue of corrupt businessmen and banking fraud has made a comeback. Gamal Essam El-Din reports Egypt's long-time "sugar king" Ali Al-Safadi -- who fled the country in 2000 to dodge the payment of millions of pounds in bank loans -- was handed over to Egypt by Saudi Arabia last week. The Palestinian businessman faces a litany of charges ranging from obtaining hefty bank loans without offering adequate collateral in return, and issuing tens of worthless cheques. The 56-year-old Al-Safadi had been Egypt's top sugar importer since 1995. As he attempted to expand his empire via bank loans, the economic crisis that struck Egypt in the late 90s and led to the depreciation of the Egyptian pound hit Al- Safadi hard. When he opted to flee, Al-Safadi owed various banks between LE600 million and LE1.2 billion in unpaid loans. Al-Safadi himself said he borrowed no more than LE600 million, or the equivalent of LE950 million today after interest rates have accrued on the loans. He has also claimed that his industrial assets are worth more than his banking debts; if allowed to go free, he said he could run his businesses and pay back the banks. Interior ministry sources indicated that more than 60 court rulings have already been meted out against Al-Safadi. If implemented, the sources said, he could face more than 200 years in jail. Egypt asked Saudi Arabia to extradite Al-Safadi once it discovered that he had established residency there and had even begun embarking on business projects with Saudi Arabian partners. His arrest and return to Egypt has rekindled the public's fury over the worsening problems of bank fraud, non-performing loans and crooked businessmen. The government has been attempting to deal with several businessmen who obtained around LE50 billion from banks before defaulting on these loans and fleeing the country. Negotiations with several countries where these businessmen are currently residing have been ongoing. Last month, the United Arab Emirates handed over Mohamed Magdi, a former owner of Al-Salam hospital who faces more than 25 years in prison for his illegitimate business dealings. Negotiations are also ongoing with police authorities in France and the US to bring back Rami Lakah and Amr El-Nasharti, two business tycoons who fled the country in 2002 and 2003 without repaying an estimated LE1.5 billion in bank loans. Last month, the government decided to bar business tycoon Ahmed Bahgat from traveling outside Egypt until he settles the billions of pounds he owes to the National Bank of Egypt and the New Housing Communities Authority. Bahgat is a construction magnate and a media mogul who owns the two Dream satellite channels. Distressed by the worsening conflict between the government and these and other businessmen, two MPs have proposed a draft law that aims to encourage fugitive businessmen to come back to Egypt and settle their debts. The draft law, an amendment to the banking law, obligates banks to avoid taking legal action against businessmen who come back, and conduct serious negotiations to settle their debts instead. The new bill has yet to be approved by the People's Assembly, which adjourns for its summer break on 27 June.
