IN THE CASE OF THE DAMIETTA CONTAINER COMPANY

Free translation of the article published in the Egyptian daily newspaper “Al Akhbar” of June 29th 2006 regarding
the CMA-CGM case


IN THE CASE OF THE DAMIETTA CONTAINER COMPANY
The former chairman of the board of directors and six others, handed over to the criminal court
(by Khadija Afifi)

In the case of the Damietta Container Company, the general prosecutor, judge Maher Abdel Wahed indicted Ali Massaad Saad, the company’s former chairman of the board of directors, imprisoned, Maher Saad, manager of the taxation department, fugitive, Jihad Anis Dagher, General manager of the CMA-CGM shipping line in Egypt, French citizen, Nabil Elie Bassil, the shipping company’s regional financial manager for the middle-east, a Lebanese citizen, fugitive, Moustapha mohammad Khalil, the company’s Damietta office manager, Jamal Abd-razek, CMA-CGM financial manager in Egypt, Ahmad Mohammad Yacoub, accounting manager of the shipping line, in handing them over to the criminal court for facilitating the misappropriation of public funds, for illegal enrichment and for incurring prejudice to the interests of the Damietta Container Company in relation to the payment of bribes for the amount of USD 125,000 in collusion with the shipping line’s [CMA-CGM] managers.

The general prosecutor stated that other facts incriminated the shipping line [CMA-CGM] in its relationship with the Damietta Container Company, thus confirming the company management’s involvement in the misappropriation of public funds for an amount exceeding USD 6,000,000.
The general prosecutor and the first councilor, Hicham Abdel Majid, general attorney near the Public Funds Committee, examined the file in the presence of Wadih Hanna Nached, manager of the Public Funds Committee, who initiated the investigations which revealed that the accused Ali Massaad asked for the amount of USD 100,000 to the shipping line [CMA-CGM] in exchange for the amendments to the agreement signed between the Damietta Container Company and CMA, thus granting advantages to the shipping line [CMA-CGM] estimated at USD 5,000,000 as a result of the implementation of undue rebates following the change of the agreement’s date of signature.

Shipping giant denies bribe claim

Sunday Express June 18 2006

Shipping giant denies bribe claim

The world’s third-largest container shipping company, CMA CGM, has denied bribing Egyptian port officials despite global concerns over. Legal action underway in Egypt.
The € 5 billion (₤3.4 billion) company, headed by Jacques Saadé, said it had not bribed or tried to bribe Egyptian officials, despite the arrest of Aly Massad Saad, chairman of Damietta Cargo Terminal. He was paid up to $10,000 a month by the company for a number of years. CMA CGM then tried to pay the terminal $3.1 m (₤1,7 m) in compensation.
Saadé said: “They have been paid by the office in Egypt. No money was taken from France”.
The company added: “We confirm that we have undertaken an internal investigation and audit on the subject in cooperation with the Egyptian authorities.”
CMA CGM confirmed senior staff, including the Egyptian financial controller, were being questioned by Egyptian authorities.
The situation will alarm countries such as the US where politicians successfully lobbied to prevent Dubai company DP World taking over UK port company P&O’s US assets over security concerns. CMA CGM said: “We have no assurance to give. This practices is not authorized in our group.”
The US State Department confirmed it was looking into the matter.