Citadel plunges 10 pct after chairman travel ban

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CAIRO: Egypt’s Citadel Capital stock plunged 10 percent on Sunday after the public prosecutor issued a travel ban on its chairman, Ahmed Heikal who is being investigated for corruption allegations.

The news of the ban was reported after the close of trade on Thursday; Citadel’s share fell to LE 4.68 on Sunday.

According to the Prosecutor General’s statement, Heikal is being examined for his dealings with Atef Ebeid, who served as Egypt’s Prime Minister from 1999-2004.

The statement specifically mentioned the privatization of Helwan Portland Cement company which Heikal bought “with a very low price.”

Citadel Capital, on the other hand, refuted allegations that it received Helwan Portland Cement Company from the government.

“On Dec. 9, 2004, approximately three years after Helwan Portland Cement Company was privatized, Citadel Capital — through Al-Wataniya Trade and Development, owned fully by Citadel Capital — purchased the full stake in Arab Swiss Engineering Company that was at the time owned by heirs of Mr Omar Amin Roshdy Gamei,” the statement read.

“Subsequently Citadel Capital purchased all outstanding shares in Arab Swiss Engineering Company — a total of 50 percent — from other shareholders.”

The refute came just two days after Egypt’s Prosecutor General released their statement, which was issued on the Prosecutor General’s Facebook page for communicating with the families of Jan. 25 Revolution martyrs.

Citadel Capital’s press statement outlined the company’s transactions with Helwan Portland and the Arab Swiss Engineering Company, adding that Citadel Capital “did not exist as a firm when Helwan Portland Cement was privatized.”

“Citadel Capital was formed on April 13, 2004, while Helwan Portland Cement Company was sold to Arab Swiss Engineering Company in September 2001,” the statement said.



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