Wednesday, Feb 09, 2011
(Recasts, adds details, background.)
DUBAI (Zawya Dow Jones)--Egypt's Ezz Steel confirmed Wednesday that its chairman Ahmed Ezz has been directed by authorities to remain in the country as companies perceived as having close ties to President Hosni Mubarak's government find themselves subject to intense public scrutiny over their business affairs.
Ezz Steel, the largest producer of the metal in the Middle East and North Africa region, didn't say why Ezz had been requested to stay put in Egypt, but said the order from authorities is one faced by a number of other Egyptian public figures and leading businessmen.
"This measure, which is strictly personal to Mr. Ezz, does not affect the operation of the company. Mr. Ezz is currently in Cairo. He will respond to any charges which may be brought against him in the proper judicial forum," Ezz said in an emailed statement.
Egypt's anti-regime protests have now entered a third week with thousands of demonstrators still holed up in Cairo's Tahrir Square insisting that President Hosni Mubarak step down. Local companies viewed as having benefited from the Mubarak government have come under heavy criticism from anti-regime protestors as well as large sections of the media.
State-owned MENA news agency said Tuesday that the general prosecutor will start investigations involving Ahmed Ezz within days. The general prosecutor will be examining documents and communications received against Ezz and others. Ezz faces investigations on suspicion of theft of public money, profiteering and fraud, among other accusations.
Ezz Wednesday said it refutes "unsubstantiated allegations of corruption conveyed by some media." It also denied allegations that Ezz enjoys a monopoly in the Egyptian steel market.
"Ezz is not a monopoly but a leading producer in Egypt where it operates in a free market and competes fairly with other Egyptian steel producers and foreign importers," the company said. It added that in 2009 the Egyptian Competition Authority found that there had been no abuse of a dominant position by Ezz Steel, nor any breach by the company of the competition law.
"All business operations of Ezz Steel are fully transparent and are compliant with Egyptian laws and regulations," Ezz said.
The steel producer said that despite recent political unrest in Egypt its "plants are operating and have not suffered any physical damage."
-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
(Summer Said in Dubai contributed to this article.)
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
09-02-11 0859GMT
