Egyptian firm Orascom Telecom said on Wednesday its Algerian unit Djezzy’s chief executive had been called in by police for questioning over allegations that the firm violated Algerian foreign exchange rules.
"The company denies performing in any way that is not in accordance with the Algerian law and the CEO of OTA (Orascom Telecom Algeria) has submitted and shall further submit clarification to this effect," it said in a statement.
The firm also said it had not received any new tax claim from the Algerian government, after government and industry sources said Algeria planned to demand new back-taxes from the unit, known as Djezzy.
Djezzy, Orascom’s single biggest source of revenue, has been at the heart of a long dispute between the firm and Algerian authorities since it was hit with previous back-tax claims totaling over $600 million.
Orascom Telecom agreed to talks to sell the unit to the Algerian state after Algiers blocked a plan to sell it to South Africa’s MTN, saying the state had first option to buy the unit before any foreign bidder.
In Wednesday’s statement Orascom said Algeria’s central bank had alleged that certain technical assistance fees paid by Djezzy to its parent firm in 2007, 2008 and 2009 had violated foreign currency transfer rules.
"The CEO of OTA was called in by the police for investigation on allegations by the Bank of Algeria against OTA that certain technical assistance fees paid to OTH (Orascom Telecom Holding) against certain support services provided by OTH to OTA during 2007, 2008 and 2009 were not made in accordance with the relevant exchange rules," it said. –Reuters
HED: Egypt to offer new land for industry in January
Egypt’s Industrial Development Authority (IDA) said on Tuesday it would seek bids for 7 million square meters of land for industry in January in three regions.
Egypt is seeking to promote local industry to double exports to LE 200 billion ($35 billion) by 2014 and create more employment opportunities in a country where about 600,000 to 700,000 people join the jobs market each year.
Amr Assal, head of the authority, told Reuters the land would be offered in Port Said on the Mediterranean, Ismailia next to the Suez Canal and in an area south of the capital around Fayoum.
He said these "are regions of high investor demand due to growth and development opportunities in such areas.”
