A Central Auditing Agency (CAA) report revealed gross irregularities in the phosphate project of Abu Tartour in the New Valley, wasting public funds in a project that made losses of LE 3.574 in 2007. CAA called for bringing to account those responsible for the irregularities. The report said the losses were due to poor planning, poor feasibility studies, operational errors and conflicting decisions taken as regards that project. The report said the project was established under the Industry Minister's decision No. 749 of 1974. It was to be supervised by the Public Authority for Industrial and Mining Projects of the Ministry of Foreign Trade and Industry (now called the Ministry of Trade and Industry). The project was to extract phosphate from Abu Tartour in the New Valley, and produce 2.2 million tons of phosphate fertilizers annually. It was also meant to create new job opportunities, feed its complementary industries and services, and create a new community in the New Valley, improving the region's economic and social structure.
The report said that until the end of the fiscal year 2006/2007, and after nearly 34 years, the project is still in its start-up phase of operation due to the serious problems it has encountered, resulting in failing to gain from the funds that were invested in it, as well as bearing the start-up costs. The report noted that the financial status of the project in June 3, 2007 was not certified by the Egyptian General Authority for Mineral Wealth, but rather only by the project manager on 28.10.2007. It also said that what has been invested in the project and what has been spent on its complementary industries amounted to LE 10.78 billion since the start of the project in 1976 until 30.6.2004, when it was transferred to the Ministry of Petroleum and separated from its complementary industries. It added that what was invested in the project reached LE 575.133 million, LE 590.893 million and LE 627.883 million in the three fiscal years ending on 30.6.2007, 30.6.2006 and 30.6.2005 respectively, which are figures that CAA has reservations on. The report said that CAA had pointed to irregularities before, but the project management did not take appropriate action, claiming that these irregularities were under the operational arm of the Mining Authority before the project was transferred to the Ministry of Petroleum. It said the project made a false net profit of LE 266.938 million in the fiscal year 2006/2007 as a result of reducing the interest due to the National Investment Bank that was estimated at LE 311.957 million in fiscal year 2004/2005, a figure that the project management has deduced from the fiscal year 2006/2007 as per a letter from the President of the State Budget Department at the Ministry of Finance to the General Authority for Industrial and Mining Projects on 21.6.2007. It added that the start-up operation of the project made losses amounting to LE 47.865 million in the fiscal year 2006/2007, being the difference between LE 81.042 million in expenses and LE 33.177 million in income. These were added to the deferred revenue expenditure, bringing the total losses since the establishment of the project in 1974 and until the 30.6.2007 to LE 3.574 billion, let alone the interests that were not recorded. This means that the project is still in its start-up phase after 34 years.
The report recommended reconsideration of the project's feasibility, as it did not achieve its financial objectives since its start until 30.6.2007, and so as to prevent further wasting of public funds. It also recommended assigning a competent scientific institution to inspect the radioactive material, verify the safety of its storage and quickly dispose of it. Furthermore, it called for bringing to account those responsible for all the above irregularities.
