Egypt Court Convicts Saudi Investor for Violating Workers' Rights
An Egyptian court has made history by sentencing Saudi Arabian investor Abdul Elah el-Kaaki to two years in prison for violating workers' rights at his Tanta Flax and Oils Company. This marks the first conviction of a foreign investor by an Egyptian court since the country's privatization process began in the 1990s.
Kaaki, along with company managing director Mohamed el-Sihi and general manager Mohsen el-Ayat, received the same sentence. The company, employing 1300 workers, was closed down by its owners a year ago. Kaaki was found guilty of violating his contract terms by stopping payments of workers' rightful bonuses and share dividends.
The troubles began when Kaaki purchased the company in 2005 for LE83 million, despite its real net worth being estimated at LE500 million. Workers faced issues with management after the sale, with conditions violated including disregarding agreements related to employee rights and failing to maintain promised operational standards during privatization.
The court ordered Kaaki to pay LE500 to each worker and LE800 to each laid-off worker. Lawyer Khaled Ali hailed the verdict as a strong message to businessmen who violate workers' rights, marking the first application of Article 375 of the Penal Code to a businessman. The court also called for the amendment of Egypt's labor law to better protect workers' rights in privatized companies.
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