Kaki Group Co Limited sent Prime Minister Ibrahim Mehleb a formal demand for an immediate EGP 1bn reimbursement, including delay penalties and losses, according to a Kaki Group press statement Saturday.
Kaki Group is owned by Saudi investor Abdul Elah Kaki, owner of Nubaria Company, which produces “Nubaseed” seeds. It has been estimated that the price of the sister company “Tanta Flax and Oils” and their assets and pumped investments since its privatisation is approximately EGP 1bn.
“The company accused the government of failure represented in the Chemical Industries Holding Company (CIHC), one of the public sector companies at the Ministry of Investment, to implement the rule of the administrative court to return to pre-contract,” the statement read.
Abdul Elah Kaki said that he would not terminate his investments in the Egyptian market. The move comes despite the smear campaigns led by some former employees of the company with funding from a human rights centre, which works to “oust” investors from the local market.
Kaki confirmed he does not want to return Tanta Flax to his business, due to the company suffering from false lawsuits and deliberate distortion of his reputation in the media.
Kaki added that he spoke with Minister of International Cooperation Nagla Al-Ahwani, informing her that the government is not doing its part in serious investor protection. He added that the Egyptian government should abide by the provisions of the courts.
“The government should pay back the value-based pricing of its assets to the company because of difficulties in managing the company since the issuance of the administrative court rule of the invalidated contract of sale of the company,” Kaki said.”The government is now at stake, either to prove its respect for the judiciary and investors, or to keep unhelpfully silent.”
Kaki said the government should take action, otherwise the company will take new steps to get its right in light of respecting the law and Egypt’s judiciary.
The problem emerged after the Egypt’s judiciary issued, after the 25 January Revolution, provisions for cancelling the sale of several companies under former president Hosni Mubarak’s regime. The companies, such as “Tanta Flax and Oils” and “Cemex Egypt”, were returned to the state.
Tanta Flax and Oils Company workers received the State Council ruling on 21September 2011, which stipulated the dissolution of a sale of the company, delivered to the state, managed by its workers, and bringing them back to work, but the government refused to implement the ruling.