Back to square zero: the Crooks Return to Cairo

Here is a story by Foreign Policy:

As crowds packed streets throughout Egypt during the 2011 uprising that overthrew autocrat Hosni Mubarak, it wasn’t only the politicians and generals in Cairo who were scrambling to protect their interests. With the old regime teetering, business tycoons connected to the regime packed up their bags — and their billions — and fled the country.

One of them was Hussein Salem, who was nicknamed the “Father of Sharm el-Sheikh” for his ownership of multiple hotels in the coastal resort city. Salem made billions of dollars in the energy, arms, and hospitality industry in Mubarak’s Egypt — he was so close to the former president that the two even invested together, according to documents obtained by Foreign Policy. It was a lucrative alliance for Salem: In the early 2000s, Mubarak granted him a monopoly over gas exports to Jordan, Israel, and Spain. Salem used this deal to sell gas at below-market rates for years, according to an Egyptian court ruling, costing the country more than $700 million.

Salem hasn’t been back to Egypt since Mubarak’s fall — and for good reason. As post-uprising Egypt looked to recoup the millions stolen by Mubarak and his cronies, a series of court cases focused on the corrupt business practices of Salem and his family. In October 2011, Salem — along with his son, Khaled, and daughter, Magda — were found guilty of making illicit gains on their gas sales, and sentenced in absentia to seven years in jail. In June 2012, he was convicted of selling gas to Israel at below-market prices, and sentenced in absentia to 15 years in jail, and ordered along with other defendants to pay $412 million in fines. 

Salem, however, holds Spanish citizenship, which has allowed him to dodge the Egyptian legal system. He is now living in Majorca, Spain, and is wanted by Interpol along with his son and daughter. Spanish courts, however, have refused to extradite him to Egypt because the two nations do not have judicial or legal bilateral cooperation agreements and the courts’ uncertainty about the fairness of Egypt’s legal process.

But for the first time since Mubarak was toppled, Salem’s fortunes — and that of other Mubarak-era businessmen — may be shifting for the better. Since Egypt’s generals ousted Islamist President Mohamed Morsi last July, Salem said he has been ecstatic and is planning his return to Cairo, his lawyer Tarek Abdel-Aziz told FP. The billionaire Mubarak confidant phoned in to a popular television program in January to offer a deal to the new military-backed government: Cancel my convictions and I’ll give Egypt millions.

Egyptian officials publicly welcomed the offer.

“Mr. Hussein Salem and other noble businessmen … your initiative is really appreciated,” said Hany Salah, a cabinet spokesman, during the phone-in on local channel CBC. “Anyone who proposes a noble and good offer, then the least we can do is listen to him for the best of our beloved country.”

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Full story is here.

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