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Egypt : OCI Comments on Recent Statements from Sources in the Egyptian Government.

Orascom Construction Industries (OCI), in response to articles published by several websites commenting on recent statements from several identified and unidentified sources within the Egyptian government, confirmed that it has received no formal notification about a travel ban on its current Chairman and Chief Executive Officer Nassef Sawiris and former Chairman Onsi Sawiris pending confirmation of allegations of tax evasion in Egypt.

In light of these statements, the company would also like to clarify the following:

1) The Egyptian Tax Authority has submitted a tax claim to the company to pay EGP 4.7 billion (through Tax Form 19) related to the sale of Orascom Building Materials Holding (OBMH) to Lafarge SA in 2007

2) To date, the company has received no additional claim with any different tax liability related to the sale

3) In accordance with paragraph 8 of article no. 50 of law no. 91 of 2005, all capital gains resulting from the sale of shares listed on the Egyptian Stock Exchange (EGX) are tax exempt; consequently the sale of OBMH to Lafarge SA in 2007 is exempt of any capital gains tax

4) On January 13 2013, and in accordance with the aforementioned law, the company filed an appeal with the Egyptian Tax Authority s Appeal Committee challenging the claim in Tax Form 19. Such an appeal is permitted under article no. 119 of law no. 91 of 2005. At present the appeal is under review by the committee

The company is confident of its tax position and is confident that it did not violate any laws pertaining to the sale. The company is presently awaiting the Egyptian Tax Authority s Appeal Committee s final decision and will publish updates in due course.

About Orascom Construction Industries - OCI is one of Egypt s largest corporations employing 90,000 people in 35 countries around the globe. The OCI Fertilizer Group owns and operates nitrogen fertilizer plants in Egypt, the Netherlands, the United States, and Algeria and has an international distribution platform spanning from the Americas to Asia. The OCI Fertilizer Group ranks among the world s top fertilizer producers with a production capacity which will exceed 7.0 million metric tons in 2012. The OCI Construction Group provides international engineering and construction services primarily on infrastructure, industrial and high-end commercial projects in Europe, the Middle East and North Africa for public and private clients. The OCI Construction Group ranks among the world s top global contractors.

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Publication:Mena Report
Geographic Code:7EGYP
Date:Mar 5, 2013
Words:421
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