El-Nasr Coke and Chemicals to be liquidated due to losses: Public enterprise minister

Gamal Essam El-Din , Saturday 18 Jun 2022

In response to questions directed by MPs, Egypt’s Minister of Public Enterprise Hisham Tawfik insisted that the “liquidation of El-Nasr Coke and Chemicals will go ahead as planned after it incurred losses of EGP 30 million last year and that there is no hope of reforming the company and turning it into a profitable one.”

Hisham Tawfik
Minister of Public Business Sector Hisham Tawfik

 

Tawfik’s response came in the course of a report that was sent to the House of Representatives on 7 June.

On 6 June, MPs sharply criticised Tawfik, accusing him of ignoring their questions on “his harmful privatisation and liquidation policies.”

Most notably, MP Mostafa Bakri said Tawfik’s statements about losses in public sector companies are incorrect and that he should come to the House to answer questions directed by MPs in this regard.

He said that “Tawfik is planning to liquidate El-Nasr Coke and Chemicals even though it secured profits of EGP 114 million last year.”

In response, Minister Tawfik sent a report to the House on 7 June indicating that “his decision on liquidating El-Nasr Coke and Chemicals came only after its losses hit a record EGP 30 million last year and that there is no hope of modernising this company or rectifying its financial conditions.”

“In order to keep this company operating, it has to import huge quantities of raw coal from Canada every year to process it into coke and then export it to foreign markets, however, this is an illogical procedure because it is highly costly and will never be covered by profits, if any,” the report said.

Tawfik also indicated that the “company’s products — except for one or two — are no longer in demand on the market, and so the decision to liquidate it is quite correct.”

Ihab Mansour, an MP affiliated with the Egyptian Social Democratic Party, also submitted “an urgent statement” on the company that will be delivered before the House this week.

 “Minister Tawfik’s privatisation policies go against President Abdel-Fatah El-Sisi’s statements in support of localising industries, cutting imports, and boosting industrial exports,” he said.

“But the problem is that this minister has a negative view of the public sector, and his policies always aim to sell public assets — a procedure which led to the proliferation of private monopolies on the local market,” said Mansour, insisting that “El-Nasr Coke and Chemicals secured profits of EGP 114 million last year.”

MPs Mostafa Bakri and Mahmoud Qassem also directed “urgent statements” on Tawfik’s plans to sell off public sector hotels. These urgent statements are also expected to be delivered before the House this week.

Tawfik said in a press interview with the independent Al-Masry Al-Youm on 14 June that “the government is already planning to privatise 20 to 30 percent of the shares of seven public sector hotels to Arab sovereign funds.”

He added that the ministry is “selling off part of the shares of these hotels because they need a comprehensive and expensive process of renovation, so it is better to privatise some of their shares.”

Short link: