/ 29 August 2005

Corruption scandal hits Egyptian media mogul

A corruption scandal on Monday hit Egypt’s best-known media tycoon, also a long-time confidant of President Hosni Mubarak, a few days before the president runs for re-election in a landmark poll.

The El-Osboa weekly newspaper revealed that Ibrahim Nafie, the former chairperson of the Al-Ahram press group, was on a $500 000 salary and received millions more in hidden benefits.

The newspaper alleged that Nafie — who remained at the helm of Egypt’s top-selling daily for 26 years — also cut himself a daily commission of $14 400 on the group’s distribution and advertising receipts.

Before being replaced in July, Nafie siphoned $70-million from the group’s assets into his own accounts, the newspaper charged, alleging that banking and state institutions turned a blind eye.

El-Osboa published facsimiles documenting the corruption allegations and detailing some of the payments made to Nafie and his close associates.

The newspaper also charged that Nafie threw extravagant birthday parties in his private home every year and charged them to the newspaper’s account, totalling about $43 000.

Al-Ahram sells 600 000 copies a day and the group employs about 10 000 people. It is the largest of Egypt’s top three state-owned newspapers and the biggest press group in the Arab world.

Nafie, who had been in charge of the group since 1979 and was also the paper’s chief editor for more than two decades, was considered close to Mubarak and was often dubbed the president’s ”right-ear minister”.

He lost his position as Al-Ahram chairperson in July as part of complete revamping of the state press, which was believed to have been initiated by Mubarak’s son Gamal. — Sapa-AFP