CAIRO: An Egyptian politician and businessman on Saturday publicly defended Talaat Moustafa Group (TMG), the firm he formerly chaired, in a court case that puts its flagship property development at risk.
A court ruled in June that the New Urban Communities Authority (NUCA), part of the Housing Ministry, broke the law when it sold land directly to a TMG unit instead of opening it to bidding and held that the contract should be scrapped.
In an advertisement published in the daily Al-Masry Al-Youm, Hesham Talaat Moustafa defended the Madinaty project, saying media reports the government had lost money in the deal "had no basis in truth" and that there was "no suspicion of corruption".
NUCA and TMG appealed separately against the first ruling. A High Administrative Court said it would merge the two appeals and would issue a ruling on Sept. 14.
Analysts say they do not expect the outcome of the case over Madinaty to lead to cancellation of the whole project, which includes homes, schools, hotels and a golf course on Cairo’s outskirts, even if the court orders the contract scrapped.
The comments by Moustafa, a member of Egypt’s ruling party, were issued on his behalf by his wife after she visited him in the jail where he is being held, according to the advertisement.
Moustafa was originally found guilty and sentenced to death for his role in the murder of a Lebanese singer, a trial that gripped the Arab world. That conviction was overturned on appeal and a retrial ordered.
His brother took over chairmanship after he was charged, but the twists and turns in his case have led to volatility in TMG shares.
In Saturday’s advertisement, Moustafa listed several tourism and real estate projects the firm had executed, which he said had created jobs, helped earn Egypt foreign currency and generated income for the government from direct and indirect taxes.
Referring to various criticisms of the Madinaty deal, he said "this climate filled with lies, mistakes and altering of facts is not in the nation’s interest" and did not create the right environment to attract investments.
Moustafa and security man Muhsen El-Sukkari, also on trial, were arrested in 2008 on allegations of the murder of singer Suzanne Tamim in Dubai that year. They were convicted in 2009.
A retrial was ordered on the grounds of legal errors and after the original court was found to have failed to respond to defence requests. Closing arguments are scheduled for Sept. 25.
