Bribery Charges
Egypt probes corruption in state bidding process
Former chairman of
Cairo-based PGESCo has been tied to accepting millions in kickbacks and is
being investigated by Egypt's electricity ministry after being connected to
cases in France and the United States
Ahram Online ,
Tuesday 30 Dec 2014
A project by PGESCo in
Nubaria industrial zone near Alexandria governorate (Photo: courtesy to PGESCo)
Egypt's electricity ministry began
an investigation into bribery charges raised in the United States against
former chairman of Cairo-based PGESCo, Assem El-Gawhary, according to statements
from electricity minister Mohamed Shaker, to Reuters Aswat Masriya on Monday.
Earlier this month, El-Gawhary, the
former chairman of PGESCo, a joint venture between Egypt's state-owned
electricity company and American-based construction company, Bechtel Corp,
pleaded guilty to accepting $5.2 million in kickbacks to manipulate the bidding
process for state-run power contracts in Egypt, the US justice department said
in a statement published 4 December.
El-Gawhary, who is a dual US and
Egyptian citizen, accepted the kickbacks from three power companies from 1996
to 2011, the statement said. The former chairman was sentenced to 42 months in
jail and to forfeit the $5.2 million.
Last week, French company Alstom SA
pleaded guilty to bribing government officials to win business in countries and
agreed to pay $772 million in fines, the US justice department said in a
statement published 22 December. Among these countries was Egypt where the
company bribed El-Gawhary’s PGESCo.
PGESCO currently holds tens of projects
across Egypt as well as other projects in Iraq and Libya.
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