The Egyptian Center for Economic and Social Rights and Wael Hamdi Alsaid law house today filed the complaint 34 248 / 65jy on behalf of workers of Tanta Flax and Hamdi elFakharany claiming the invalidity of the selling contract of Tanta flax Company to the Saudi investor Abdulilah alKahky.
The complaint stated that the company’s shares were 5,910,000 , the holding company for chemical industries owned 3,352,870 shares , the National Investment Bank, represented by the minister of finance as chairman of the board owns 2,557,130 shares.
All shares were sold in full with the amount of EGP 83 million , under the following terms:
Advance payment : EGP 33,200,0000 representing 40% of the total. This amount has been paid by four checks (copies attached). The selling contract is only valid after checked have been cashed.
The remaining EGP 498 million plus the deferral revenue are payable in 3 installments,
The selling price has been decided by the financial position of the company on 30/6/2004. The price was calculated according to the book value reduced by annual depreciation rates. The pricing did not abide with the rules set forth in the law of auctions and tenders and the law of the public business sector.
The appeal said that the company has nine plants (thick wood – thin wood – linen – thin string – thick string – oil products – home furniture – urea – conter wood). All nine plants were operating at full capacity in selling time having 2000 workers. Today more than 1500 workers were laid off and only 2 plants are running : thin wood high and linen).
In conclusion, the appeal requested to stop the implementation of the decision to sell Tanta Flax and Oil with the consequent effects such as the invalidity of the selling contract between representatives of public funds and the buyer . Both parties should return to the state prior to contract. All company assets and property have to be recovered free of all mortgages , debt that the buyer may have made . All workers must return to their positions prior to selling and to be paid all rights from contract date to the date of execution of the sentence. The buyer will be held liable for all debts and commitments which may have been arranged during the duration of the contract .
The Egyptian Center for Economic and Social Rights said ,” We won the case of Omar Effendi, in which the court decided the invalidity of the selling contract . The case was filed by Hamdi elFakharany , the defense team was composed of of Wael Hamdi elSaid law house and lawyers of the Egyptian Center for Economic and Social Rights. Apparently, ECESR has received dozens of requests from workers to recover public sector companies that were sold in violation of the law. ECESR defense team is working on the documents and preparing appeal suits .