The jobs of 10,000 workers at the Egyptian Contracting Company (formerly known as Mokhtar Ibrahim) are under threat due to a liquidity shortage exacerbated by the money the government owes the company, said Mohamed el-Serougui, a member of the company’s board of directors.
The Ministries of Housing and Finance owe the company money and the Holding Company for Water and Waste Water owes LE600 million, said el-Serougui.
The company may have to terminate its signed contracts because of the shortage, and may face penalties for falling behind schedule in its projects, he said.
The Cabinet of Ministers has decided to finish the projects which are currently included in the state budget and plan, because the financial allocations are in place, said el-Serougui. However, the company has not received any money for the other government projects which are not included in the budget and plan, he added.
The Egyptian Contracting Company, which is being threatened with removal from the stock market fears it may have to resort to bank loans, el-Serougui said. Such a move would reduce the workers’ annual profit by diverting their earnings in order to pay interest on the loans, he explained.
The company has 6000 permanent workers as well as 4000 temporary workers, el-Serougui said, adding that some of the temporary workers will be laid off.
Translated from the Arabic Edition.
