Shares in Orascom suspended over tax dispute
Trading in shares of Orascom Construction Industries (OCI), Egypt’s biggest private construction firm, was suspended on Tuesday after the stock exchange demanded detailed updates of the company's tax dispute with the government.
Al-Mal daily reported on Tuesday that OCI had reached an agreement with the Egyptian Tax Authority (ETA) under which the firm will pay its back taxes in installments. OCI is yet to confirm.
OCI is accused of tax evasion worth some LE14 billion (roughly $2 billion) from the sale of an OCI subsidiary to La Farge in 2007 for $12 billion.
Accordingly, a travel ban was imposed on OCI chairman and CEO Nassef Sawiris, and his father, former company chairman Onsi Sawiris.
In March, the ETA said it had documents proving OCI should pay taxes on the La Farge sale.
- The Middle East's lack of savings: a ticking time bomb?
- How a Middle Eastern bank fought off the global financial crisis and turned around
- The GCC's small businesses need to prepare themselves for bankcruptcy
- Why the World Bank is ill-prepared when it comes to dealing with the Middle East
- Time to burst that Expo 2020 bubble, can Dubai survive with $103 billion in debt?