Orascom Development pays $3.4 million fine to Egypt financial authorities

Ahram Online, Thursday 8 Sep 2011

Payment comes after hotels and resort firm arranges the scrapping of a two-year prison sentence for head Samih Sawiris

Orascom Development
ODH comes to a settlement

Orascom Development Holdings AG (ODH) announced on Wednesday that its Egyptian subsidiary Orascom Hotels and Development (OHD) had paid a LE20 million (US$3.4m) penalty to the Egyptian Financial Supervisory Authority (EFSA).

OHD provided the EFSA with a guarantee covering the maximum fine payable under the Egyptian Capital Markets Law but said it intended to negotiate the amount of the fine.
 
A preliminary judgment, later nullified, called for a fine of up to LE50,000.
 
In late August an Egyptian court sentenced Samih Sawiris, ODH's executive chairman, to two years in jail for manipulating the firm's stock price and providing incorrect data on its finances.
 
On Wednesday, ODH said it had reached a settlement with Egypt's financial market watchdog that effectively scraps the prison sentence.
 
ODH and all its subsidiaries continue to reiterate that they have always complied with all applicable rules and regulations, and clearly deny any wrongdoing.
 
Swiss-listed Orascom Development has been diversifying its business, but Egypt remains its biggest market. Businesses there came to a near standstill for almost 50 days earlier this year due to the uprising that ended the 30-year rule of President Hosni Mubarak.
Short link: