Friday 20 May 2011

Egypt: the costs of cleaning up | beyondbrics – FT.com

Egypt’s ministers and businessmen are travelling the world to reassure investors that – despite the political unrest and calls for increased spending on subsidies in the face of a growing deficit – Egypt is still a good place to do business.

Yet Egyptian courts are also prosecuting alleged corruption by members of the former regime, including property deals between well-connected investors and ministers of former president Hosni Mubarak. It’s a tricky game – trying to call old investors to account without discouraging new ones.

Bearing all this is mind, one company embroiled in legal action in Egypt is making a point of arguing publicly that Egypt risks hurting its own interests by the way it is prosecuting the company for a land deal it did with a former tourism minister.

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