Economic professor in Barcelona reveals new information on corruption charges against Egyptian fugitive contractor Moahmed Ali

CAIRO  26 September 2020: The economic professor in Barcelona Nael Shehata, who filed a lawsuit against the fugitive contractor Mohamed Ali for tax evasion and money laundering, revealed new information on the corruption cases against Ali.

 

 

In media remarks with al-Hikaya talk show with anchorman Amr Adib on MBC channel on Friday, Shehata said that he himself helped Ali in Spain to buy his villa in 2018 for 1.250 million euros in addition to the taxes. Shehata added that Ali got the money from Egypt to his own account in Spain to complete the purchase process.

 

 

“The financial problems that Ali is suffering from are tax evasion and money laundering. I personally was harmed financially and awaited until getting evidence and documents to file a lawsuit against him. We submitted evidence of tax evasion of 750,000 euros.”

 

 

As for money laundering, Ali transferred 150,000 euros initially, and then 200,000 euros and later 250,000 to Spain through other people in Egypt, he added.

 

 

In February 2020, Cairo’s Tax Evasion Misdemeanor Court sentenced Mohamed Ali and his partner Howayda Khalil Mahmoud to 5 years in prison and bailed them LE100,000 each for VAT evasion.

 

Both convicts have been fined LE 100,000 each. The court stated that the anti-government contractor should pay more than LE 41.8 million (US $2,6 million) in value-added taxes, with 1.5 percent of the total tax value for every delayed month.

 

 

Ali should pay more than LE 6.1 million in sales taxes for the period between 2012 and 2016, with 0.5 percent of the total taxes as a fee for every week of delay.

 

 

On November 30, 2019, the Public Prosecution referred fugitive contractor Mohamed Ali to criminal court after Style Company for Interior Design filed a case charging him with fraud and illegal seizure of LE 11 million.

 

 

The plea in the lawsuit no. 7135/2019 adds that Style fulfilled its duties indicated in the contracts worth LE 11,765,668 and that Ali promised to pay once the value of the contract with the client is delivered. Later on, the subcontractor figured out that the client had already paid the full amount, and that it was subject to a scheme along with other companies.

 

 

Ali fled to Spain where he posted videos criticizing the regime in September and later moved to the United Kingdom. In January 2020, Ali posted a video in which he announced that he quit politics to return to his business and acting career after his protest call failed to draw any followers among the Egyptian people.

 

 

The fugitive businessman has previously called the Egyptian people to protest on the anniversary of the January 25 revolution in 2020. However, his invitation was disregarded as the streets were empty.

 

 

Recently, Ali called again for protests, but his call had failed miserably. Sources revealed to Egypt Today that the fugitive contractor is tied with the outlawed Muslim Brotherhood through financial partnerships.

 

 

The sources explained that Amlak Company Ali announced its launching in Spain a few weeks ago is co-founded by him and Palestinian businessman Abdel Rahman Abou Deya who runs media outlets affiliated to the Muslim Brotherhood.

 

 

The sources clarified that such a partnership is considered a money-laundering activity as the company is a cover for illegitimate funding received by the brotherhood and transacted among European capital cities.

 

 

The sources unveiled that there is a pending project between the contractor – who fled Egypt in 2019 amid failure to pay back creditors - and the brotherhood. That is launching a TV channel from a European capital. Most probably it will be airing from London, and chaired by Osama Gawish, TV presenter affiliated to the Muslim Brotherhood. The measures required to launch the channel is facing impediments.