Lawyers of ECESR (representing Mohammed Hamed, A.Aziz Maa’touq & Sherif Farag, current & ex-workers of the Alexandria Portland Cement Co.), filed a case against:
- Prime Minister
- Minister of Investment
- Chairman of the Board of the “Holding Company for Chemical Industries”
The petition requested a ruling for the invalidity of the privatization and sale of the company.
Hend Adway, lawyer at ECESR said that the sale proceedings goes back to December 27th 1994, when the “Holding Co. for Chemical Industries” sold 20.86% of the contested company shares in an IPO for the price of320 LE/share, 19.1% were sold to individuals and financial institutions, 1.4% were allocated to the shareholders workers union at a price of 265 LE/share (with 20% discount from public selling price); the selling process reduced the the share price from 100 to 10 LE, which upped the holding percentage of the shareholders workers union to 6.9% of the company shares.
Mrs.Adawy also added that on July 3rd 1999, the ministerial committee for ” public business sector and broadening of the ownership base” (Privatization program), headed by Kamal Al-Ganzoury (then the PM of Egypt) agreed on selling 73% of the remaining share of” Alexandria Co.” owned by ” Holding Co.” to a primary investor, provided that the minimum selling price for the share is 90 LE, but the sale proceedings show that the sale contract was signed between the “Holding Co.” and “Blue Circle Industries BNC” (On Nov 30th 1999) at a price of 80 LE/share, less than the minimum value set by the ministerial committee which set the appraisal basis that decreased the company’s market value and depreciated the share price, misused the public assets and executed the sale in discordance with “Bids & Tenders” Law
Mrs. Adawy said that ECESR contest petition requested the following:
- A moratorium and overruling the decision “Holding Co.” to sell 73% of ” Alexandria Portland Cement Co.” to ” Blue Circle Industries BNC” and annulling all subsequent effects, most importantly holding the sale contract void and all following decisions and actions at any stage.
- Return of contract parties to the initial pre-contract status and annulment of any notarized contracts of land purchase actions tied with the contract in contest
- State repossession of company’s assets and all of its properties sold to the buyer, purged from any entitlements based upon any of the buyers actions after the sale
- Reinstatement of workers to previous status with full financial entitlements.
- Committing the buyer alone to all obligations and debts incurred during contract in-effect period and all subsequent actions
Mrs. Adawy concluded saying that in the event of a ruling in favor of the workers by annulment of the sale contract and privatization of the company, it will entail voidance of all actions affecting the company’s assets including the sale of shares from the English Company ( Blue Circle Industries BNC) to the French company ” Lafarge”, and the voidance of the subsequent sale action of the latter to the Greek company ” Titan”