Informed sources said former Housing Minister Ahmed al-Maghraby, who is currently banned from travel, faces three cases now being investigated by prosecutors concerning the seizure of public funds.
They said al-Maghraby is accused of facilitating the acquisition of public funds and profiteering by selling the Amon Island in Aswan and other state-owned land by direct order to certain businessmen.
Six months ago, Amon Island–a hotel location over an area of 238 acres–was sold to a private company for LE80 million, of which the buyer only paid LE4 million. The contract was later terminated when the company failed to meet the terms of payment.
The island was offered for sale again for another LE80 million only, and the purchasing company refused to pay more than 5 percent of the total price until the sales contract was registered.
It was found out later that the new buying company belonged to al-Maghraby and former Transport Minister Mohamed Mansour, who had in their turn sub-sold the island to a third party.
The deal violates Article 158 of the constitution, which prohibits incumbent ministers from purchasing, renting or leasing state property while in office.
President Hosni Mubarak had at the time intervened and canceled all agreements on the island. He then ordered that it be offered for sale in a public auction on a usufruct basis.
