A report issued by the Central Auditing Agency (CAA) revealed irregularities in hundreds of millions of pounds by the Media Production City Company during the first half of 2007/2008 fiscal year. The report said the assets of the Mubarak Studio Complex project that total LE 1.2 billion are at risk due to the dispute between Media City and the company executing the project. The report pointed out that Media City did not pay taxes for some LE 43 million, that its debts reached LE 70 million, that some LE 21 million were missing from the records and that LE 10 million in receivables were not collected.
It also revealed violations to the contracts with ART, Oscar TV and Panorama Drama TV, pointing out that Media City lost 50% of the copyright revenues from ART alone. The report also said Media City failed to collect LE 28 million in receivables from the Arab countries, and failed to use its fixed assets to the maximum, thereby wasting some LE 52 million. The report said that some LE 11 million were paid to scriptwriters that have not finished their work so far, but the company said some of those writers have died and that it was difficult to get the money back. The report also revealed that some productions worth LE 50 million were sent to Arab countries and are still pending payment.
