CAIRO: The Egyptian Industrial Development Authority submitted a proposal to make the Egyptian government a partner in Ezz Steel Company. The company's former CEO, Ahmed Ezz, was recently sentenced to 10 years in prison for wasting public funds. The authority held a meeting to consider the court verdict withdrawing the licenses from various steel companies, including: Beshay Steel, Taybah Steel, the National Steel, Garhey Steel, and Ezz Steel. The authority proposed giving three of the companies - Beshay Steel, Taybah Steel and Garhey Steel - a period of time to pay the value of their licenses in order to keep the companies' investments, employees' interests and to raise the steel production rate. Another proposal points out that the three licenses could be given to new investors in public auctions. As for Ezz Steel, the authority suggested that the government be a partner to the value of the license as the company has great investments and received many bank loans, worth 1.8 billion EGP (U.S. $305 million). There is a worry over withdrawing the license from Ezz Steel due to contracts the company signed with foreign companies. Those foreign companies could call for international arbitrary and Egypt could face financial fines if the licenses are withdrawn. The authority is looking for a way to apply the court's decision without affecting Egypt's steel market, said Ismail el-Nagdy, head of the authority. In related news, Torah Prison says it has not yet received instructions to transfer Ezz to the ward for convicted rather than accused prisoners.
