SODIC has signed a final settlement agreement on the 6th of December 2018 with the Illicit Gains Authority (IGA). SODIC accepted to pay a total settlement amount of EGP 800m as a final and comprehensive settlement of all allegations raised against SODIC, to be paid over two years. In return, SODIC shall not be requested to pay any additional amounts as regards SODIC’s Sheikh Zayed plot of land, and will be discharged from any claims with respect to this matter.
The amount will be paid from existing funding sources including the cash flows generated from SODIC West – the development on the concerned plot of land. It is worth noting that SODIC is expecting future cash inflows in excess of EGP 9bn from SODIC West.
Notably, on 21 of September 2015 a judgement was passed against the former Chairperson of Sixth of October Development & Investment Company (SODIC), Magdy Rasekh in absentia, and in the presence of other defendants, being non-related parties to SODIC, with respect to SODIC’s Sheikh Zayed land of approximately 1,400 feddan.
On 21 of December 2016 a judgment was issued by the Court of Cassation confirming the former issued judgment, noting that the judgment and the penalties only concerned the aforementioned personnel in their personal capacity and did not involve SODIC, in accordance with the provisions of the law.
Nonetheless, based on the above judgments, SODIC was requested to respond to certain inquiries with respect to the land owned in Sheikh Zayed, to ascertain its solid legal position and that SODIC did not commit any violations and was not part of any of the mentioned criminal proceedings, noting that these issues refer to contracts signed over 20 years ago.
