Egypt Independent

Finance experts warn against trading shares of corrupt officials



Investment experts have warned investors against conducting transactions that involve shares owned by persons being investigated for corruption.

Mohsen Adel, managing director for Pioneers Investment Funds, advised stock exchange investors to be careful.

A corporate management expert, Professor Salama Faris, said that despite the existence of boards of directors, major corporations tend to revolve around one individual — the company’s CEO.

Maintaining its recent downward trend, shares of the Egyptian Resorts Company (ERC) declined by 9.4 percent during Sunday’s bear market trading. Its decline was second only to Citadel Capital, which fell 9.6 percent, and whose chairman has been banned from traveling.

A statement made on Sunday by Citadel Capital said the group was going to submit a request to the attorney general to revoke the travel ban imposed on its founder, Ahmed Heikal.

Meanwhile, the ERC replaced its representative, Ibrahim Kamel, previously a top official at the formerly ruling National Democratic Party (NDP), with Abdel Moneim Atteya.

Kamel is detained pending investigations into his involvement in violence against pro-democracy demonstrators during the 25 January revolution, which toppled Egypt’s former President Hosni Mubarak.

Translated from the Arabic Edition