A recent report of the Central Auditing Agency (CAA) revealed LE 610.60 million in deferred losses by Damietta Spinning and Weaving since June 30the. The report noted that the inventory of the furniture, office equipment and other fixed assets is not complete to allow follow-up and control. It also questioned the status of some land lot that is still included in the assets of the company although it lost it by court order. The report criticized the failure to take necessary legal action to get compensation for the land that was expropriated for public benefit, which is 785 square meters for the Damietta Municipality Headquarters and 3632.5 square meters for two schools, in addition to the failure to make use of 205,000 square meters of empty land space, and the failure to prove ownership of other land lots.
The report highlighted irregularities in the inventory as compared with the records as at June 30th. It noted a stock of spare parts from previous years worth LE 1068 that were not made use of. The report also revealed the failure of the company officials to acknowledge the personal debits and credits as at June 30th, as well as the third party health insurances.
The report showed receivables as at June 30th amounting to LE 47.1 million, including LE 17.9 million with defaulted customers and LE 17.1 million in lawsuits taking the receivables to 29% more than last year, which means the company did not take necessary action to collect those funds. It also showed that the company did not settle the accounts of the Holding Company for Cotton, Spinning and Weaving and of other companies, which must be done quickly so as not to affect the final results, and that there are LE 8 million in receivables from the Tax Department due years ago. The report emphasized the company's inability to pay its long and short-term outstanding debts, taking the debts to the Holding Company for Spinning and Weaving from LE 181 million last year to LE 198 million this year. Board Chairman Hoda Mahmoud Iraqi said the company has almost completed the fixed assets records. She said the Ministry of Investment and the Holding Company for Spinning and Weaving have determined the land that would be sold and have transferred all unused land to the Holding Company. She confirmed that the company sold its idle stock in cash or on short installments so as to provide liquidity to buy raw materials and pay for salaries, electricity, water and spare parts. She said the company would pay its debts, but asked the Ministry of Finance to exempt it from the late payment fines of the Tax Department. In the same context, MP Gamal el-Zeini submitted an urgent request to Prime Minister Dr. Ahmed Nazif and to the ministers of investment and manpower on what he called ‘corruption and wasting of public money by the company', asking to urgently set up a fact-finding committee and to inform the Attorney-General to check these violations and save the company from collapse to safeguard the interest of workers, especially in light of the continuous fires that the company had and the differences among its management.
