The House of Representatives’ Industry Committee called on the government to quickly save the textile industry’s companies from financial distress and to speed up the structuring processes to increase the profitability of 32 companies.
A parliamentary source from the Industry Committee told Daily News Egypt that the Accountability State Authority’s (ASA) reports revealed that the Cotton and Textiles Industries Holding Company’s (CTIHC) losses during the last fiscal year are estimated at EGP 2.2bn, besides cumulative losses of $30bn.
ASA sent reports pertaining to 32 subsidiaries of CTIHC to the Industry Committee to discuss.
The committee has checked the reports of 25 companies so far, and is expected to complete the rest this week.
ASA’s report revealed CTIHC’s debt to the National Investment Bank as EGP 6bn.
CTIHC contracted with the American Warner Firm in February to begin structuring processes during 2016.
The office estimated the company’s assets at EGP 66bn. Land portfolios represent the majority of the assets value, according to sources.
The office plans to complete the structuring of one of the CTIHC subsidiaries in Damietta during September to be used as a model throughout the company’s development processes.
Board Chairperson Ahmed Moustafa participated in the ASA reports discussion held by the Industry Committee regarding the company’s subsidiaries.
Moustafa said the structuring processes vary from company to company according to the circumstances and assets. Some companies move from one area to another to benefit from the high value of the owned lands or put 20% to 30% in the stock exchange, sources said.
ASA reports showed that a large area of land owned by CTIHC is not registered at the Egyptian Survey Authority, but they are required to be registered at the authority to determine their actual value.