CAIRO: A suit was brought against former Egyptian Prime Minister Ahmed Nazif and Mohamoud Maghawri, head of reconstruction of the Ministry of Housing, for the alleged misappropriation of 57 million EGP (U.S. $9.6 million) earmarked for housing projects in villages in Upper Egypt. Nazif agreed to build new homes – in the style of those found Upper Egypt – on June 31, 2006. According to the contract, the project cost 100 million EGP (U.S. $16.8 million), but only 10 million EGP (U.S. $1.7 million) was cashed as an advance. Another contract, executed without reason, was signed and raised the contracting cost from 100 million EGP to 250 million EGP (U.S. $41.9 million). This new contract resulted in another 30 million EGP (U.S $5 million) advance. The Arab Contractors Company received around 17 million EGP (U.S. $2.8 million) as an advance without reason or justification. Mostafa Shaaban, the lawyer who filed the lawsuit, said the body signed similar contracts with Arab Contractors Company, and the contacting process started before ratification came from the Cabinet. Commenting on the accusation of wasting public money, Maghawri said the 10 million EGP advance was cashed for guarantee letters. He also asked the companies to accelerate the construction of houses, but due to cash-on-hand shortages, the companies asked to cash the value of equipment required to build houses for banking guarantee letters.
