The Public Funds Prosecution on Wednesday ordered the formation of a three-member committee from the Illicit Gains Office to investigate alleged violations by the Egyptian Railways Maintenance & Services (ERMAS) Company.
The alleged violations include a deal made by ERMAS to purchase spare parts. The cost of the deal was LE121 million higher than similar deals made in previous years and involving the same quantities of material.
The committee will also review deals according to which supplies of iron sheets and paints that did not conform to specifications were supplied to workshops.
The decision to establish the committee comes after the Public Funds Prosecution ordered the retention of money owed by ERMAS to two companies following ERMAS's first deal ever since its establishment two years ago.
Last week, the Public Funds Prosecution released on the bail the chairman and general director of ERMAS.
ERMAS imported spare parts for locomotives in Egyptian pounds, the result of which increased costs incurred by the company by 20-30 percent, informed sources told Al-Masry Al-Youm.
ERMAS choose to deal with a private sector importer instead of dealing with the Egyptian Railway Authority’s customs office, thereby increasing the railway authority’s financial obligations, the source explained.
Over past months, ERMAS imported spare parts, large amounts of which are unneeded, the source added.
Translated from the Arabic Edition
