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Not business as usual

Tuesday's arrest of construction magnate Hisham Talaat Mustafa on murder charges took all by surprise, reports Gamal Essam El-Din
In a move that would further reinforce the stereotypical negative image of businessmen in the psyche of Egyptian society, Prosecutor-General Abdel-Meguid Mahmoud ordered on Tuesday the arrest of businessman Hisham Talaat Mustafa to stand trial for his alledged role in the brutal killing of Lebanese pop singer Suzanne Tamim in Dubai last month.

Mustafa is a member of the ruling National Democratic Party's Supreme Policies Council and deputy chairman of the Shura Council's Economic Committee, as well as chairman of the Talaat Mustafa Group, one of the Arab World's largest property and real estate developers. He is the younger son of the late contractor and parliamentarian Talaat Mustafa, who founded the group in 1979 and served as deputy chairman of the People's Assembly Housing Committee. Tareq, Hisham's older brother who took over as board chairman, yesterday, has headed the Housing Committee since 2005.

The arrest order was preceded by Shura Council Chairman Safwat El-Sherif's approval of requests to strip Mustafa of parliamentary immunity on 25 August. A Shura Council source told Al-Ahram Weekly that Mahmoud's request to strip Mustafa of immunity was submitted a week ago. "At first Mustafa was allowed just to testify before the prosecution but later he was completely stripped of immunity so that he can be fully investigated by prosecution authorities," said the source.

Mustafa, who was taken to the Tora prison in south Cairo, could face the death penalty if convicted.

Mahmoud has accused Mustafa of conspiring with another defendant, former State Security officer Mohsen El-Sukkari, to kill Tamim on 28 July in what the Prosecutor General described as a "vengeful act". El-Sukkari is reported to have worked as a security officer at the Four Seasons Hotel in the Red Sea resort of Sharm El-Sheikh which the Talaat Mustafa group built and co-owns with Saudi Arabian Prince Al-Walid Bin Talal.

Adel-El-Said, head of Mahmoud's office, says Mustafa is charged with paying El-Sukkari $2 million to murder Tamim and with facilitating El-Sukkari's travels to England and the United Arab Emirates. Prosecutors allege El-Sukkari followed Tamim from London to her home in Dubai where he stabbed her several times.

"Mustafa provided El-Sukkari with information and money to plan and carry out the murder," says El-Said.

The killing of Tamim made headlines in Arab and Egyptian newspapers in August. Mahmoud then imposed a media ban following reports that a high- profile businessman was involved in the case.

Local media have alledged that Mustafa had a three- year affair with Tamim which ended three months ago. Tamim then left Cairo for London before travelling to Dubai. She was found dead on 28 July in her flat on the 22nd floor of the Jumeirah Beach Residence's Rimal Tower.

Abdellah El-Sinnawi, editor of Al-Arabi, the mouthpiece of the Nasserist Party, told the Weekly that

"As long as businessmen remain the backbone of the NDP these scandals will continue."

Alieddin Hilal, NDP secretary for media affairs, argues that Mustafa's indictment is clear evidence that "the ruling party knows no cronyism and that nobody in Egypt is above the law".

Hilal told the Arab satellite television channel Orbit that Mustafa was a member of the NDP's Policies Council but not of any of the party's secretariats. His arrest, says Hilal, makes it clear that a review of the relationship between big business and government is overdue. "The lack of any legal framework regulating the relationship between wealth and power opens the door wide for corruption, conflicts of interest and cronyism," Hilal argued.

Before his arrest, Mustafa himself told Orbit in a recorded interview aired on Tuesday that "Egypt is a country where the rule of law is respected. Regardless of who they are, wrongdoers should be punished."

Opposition politicians have been surprised by the rapidity with which Mustafa was stripped of immunity and referred to trial.

"The ruling party is seeking to improve its image after a number of its business tycoon members have been implicated in corruption scandals," says El-Sinnawi.

The NDP may have acted quickly in this case, claims El-Sinnawi, but that is no guarantee that Mustafa will be found guilty.

"This could turn into a copy of the Mamdouh Ismail case in which another NDP businessman who is a member of the Shura Council was acquitted of manslaughter charges."

Mustafa El-Said, chairman of the People's Assembly Economic Committee, told the Weekly that the speed of the indictment was intended to signal to businessmen that they must regulate both their behaviour and business practices. "The NDP is sending the message that it will not tolerate criminal practices from businessmen, regardless of who they are or how much money they give to fund the party."

The indictment triggered a run on shares in Talaat Mustafa Group Holding (TMG) which fell by 24 per cent on Tuesday only to regain 20 points in early transactions yesterday.

El-Said thinks it is too early to assess the impact of the indictment on the market but believes one positive aspect is that Mustafa's arrest will make it clear to foreign investors that Egypt fully respects the rule of law.

TMG , the largest real estate developer in Egypt, introduced residential compounds to the local market. Its projects include Al-Rehab and Madinaty compounds in New Cairo, Al-Rabwa in Sixth of October City and the San Stefano Grand Plaza in Alexandria.

Additional reporting by Sherine Abdel-Razek

© Al Ahram Weekly 2008