Back to the complete issue
Wednesday, 3 October 2018

National Cement Company to be liquidated

The decision to liquidate the National Cement Company was the most exciting bit of news on what was an otherwise vapid night on the airwaves.

The 62 year-old company will be officially liquidated on 7 October, after the EGM nodded to the decision yesterday, Chairman Mohamed Radwan told Hona Al Asema. The Public Enterprises Ministry had made the decision last month after financial projections revealed that the company is unlikely to make a turnaround. Radwan blamed the losses — which amounted to some EGP 2.5 bn between 2013-18 — on a variety of factors, including rising fuel prices and higher operational costs, as well as neglect in the maintenance and upkeep of equipment, which kept the company’s output low. The company is also in debt to a number of government agencies and ministries.

Company faces probe: Prosecutors will launch an investigation to identify the reasons behind the company’s operational and financial failure, according to Radwan, who said that investigators would look into decisions by past management teams and board members (watch here, runtime: 11:12 and here, runtime: 5:52 ).

The company’s 2,057 workers and employees will received around EGP 300 mn in compensation, Radwan told Yahduth fi Masr’s Sherif Amer, adding that payments will be made within three months of the move (watch, runtime: 7:57).

Nasser Social Bank is offering one-year CDs with 17% interest for senior citizens, Deputy Head Sherif Farouk told Masaa DMC. The CD is currently available to anyone over the age of 70 through all bank branches, he added (watch, runtime: 6:40).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2020 Enterprise Ventures LLC.