Bank lending scandal put Egyptian officials in jail
Egypt, Politics, 8/1/2002

The Egyptian state security court on Wednesday sentenced imprisonment periods ranging between 5 to 15 years against 31 persons, including a former tourism minister, a former parliament members, bankers and businessmen, because of their role in a case related to the offering of loans without guarantees. This is however, one of the main issues in the corruption fighting campaign in Egypt during the few past years.

The case, which includes accusations of misusing public funds, started in 1997. It was the first to target parliamentarians while still in power, who were replaced immediately after they were deprived of diplomatic immunity. Egyptian judiciary sources said the court sentenced to 15 year imprisonment 16 individuals, including former minister of tourism Tawfiq Abdo Ismael and two former parliament members. The court also sentenced to 12 year imprisonment an additional 7 individuals, including two former members of parliament. The other three individuals were sentenced 5 to 7 years. Some 11 of the convicted fled the country. They includes businessmen and bankers.

The government accusation against the convicts stated that the used five banks to get loans without guarantees at a value of 892 million Egyptian pound ( $ 192 million) during the years 1994- 1995.

The state security court ordered the convicts to return back the sums, and fined them with fees equal to the sums they had obtained. The former minister was a member in the ruling Democratic National Party.

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