Al Bhatti
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Jun 28, 2012
Former minister jailed for 15 years over Egypt-Israel gas deal
A criminal court today sentenced a former oil minister and a businessman to 15 years in prison for their role in selling Egypt's natural gas to Israel.
The sentences mark another twist in the tangled history of Egypt's agreement to export gas to Israel. The 20-year deal, signed in 2005, was seen as a way to cement economic normalisation between the two countries, but it was marred from the beginning by allegations that the price was set below market prices and that Egypt was helping subsidise Israel's military through the deal.
After the January 25 uprising that toppled Hosni Mubarak from the presidency, the deal came under heavy attack from revolutionary groups and critics who said the deal was one of the former president's worst crimes.
The public prosecutor last year filed cases against Hussein Salem, who played an instrumental role in setting up the company East Mediterranean Gas (EMG) that built and operated the pipeline, as well as the former oil minister Sameh Fahmy, and five other government officials. Salem, who is awaiting extradition from Spain on separate corruption charges, and Fahmy, who has been detained since last year, were the men sentenced yesterday.
Mubarak and his sons were earlier this month found not guilty of charges that they had bought villas from Salem in exchange for political favours related to business deals including the gas contract because the statute of limitations on the case had expired.
The case yesterday were based on a claim from the government that the Ministry of Petroleum and EMG sold gas to Israel at "below-market prices", causing the country to lose US$714 million (Dh2.62 billion) worth of income.
Despite the criminal cases, Egypt has continued to export some gas to Israel up to April when Egypt Natural Gas Company cancelled a contract with EMG because it said EMG had stopped making payments to the government.
That cancellation is now the subject of lawsuits from EMG's shareholders and arbitration cases between Israel Electric Company, EMG and the Egyptian government.
Former minister jailed for 15 years over Egypt-Israel gas deal - The National
Former minister jailed for 15 years over Egypt-Israel gas deal
A criminal court today sentenced a former oil minister and a businessman to 15 years in prison for their role in selling Egypt's natural gas to Israel.
The sentences mark another twist in the tangled history of Egypt's agreement to export gas to Israel. The 20-year deal, signed in 2005, was seen as a way to cement economic normalisation between the two countries, but it was marred from the beginning by allegations that the price was set below market prices and that Egypt was helping subsidise Israel's military through the deal.
After the January 25 uprising that toppled Hosni Mubarak from the presidency, the deal came under heavy attack from revolutionary groups and critics who said the deal was one of the former president's worst crimes.
The public prosecutor last year filed cases against Hussein Salem, who played an instrumental role in setting up the company East Mediterranean Gas (EMG) that built and operated the pipeline, as well as the former oil minister Sameh Fahmy, and five other government officials. Salem, who is awaiting extradition from Spain on separate corruption charges, and Fahmy, who has been detained since last year, were the men sentenced yesterday.
Mubarak and his sons were earlier this month found not guilty of charges that they had bought villas from Salem in exchange for political favours related to business deals including the gas contract because the statute of limitations on the case had expired.
The case yesterday were based on a claim from the government that the Ministry of Petroleum and EMG sold gas to Israel at "below-market prices", causing the country to lose US$714 million (Dh2.62 billion) worth of income.
Despite the criminal cases, Egypt has continued to export some gas to Israel up to April when Egypt Natural Gas Company cancelled a contract with EMG because it said EMG had stopped making payments to the government.
That cancellation is now the subject of lawsuits from EMG's shareholders and arbitration cases between Israel Electric Company, EMG and the Egyptian government.
Former minister jailed for 15 years over Egypt-Israel gas deal - The National
