Egypt

Company goes to court as Damietta governor continues to halt work

Damietta governor, General Mohamed Ali Fleifel, on Thursday refused to issue a decree allowing work to be continued at MOBCO. The governor's decision follows massive losses at the plant due to three weeks of halted work.

The governorate’s secretary general told the company by phone that the governor fears riots in al-Sinanyah village located near the project, said Eng Medhat Youssef, Chairman of MOBCO.

The company has filed two law suits against both the prime minister and Damietta governor for causing damage to the company without legal evidence, Youssef added.

The lawsuit alleges the governor illegally halted work at the factory since 13 November, he explained.

The lawsuit filed against the prime minister is based upon his endorsement of an environmental committee report, which evaluated the plant, Youssef said, adding that the committee recommended that the factory remain shuttered until the company built a treatment station for industrial and sanitary drainage.

The closure has incurred the massive losses for the company, as all import and export operations have stopped, MOBCO Chairman said, adding that the company’s general assembly is to be held 17 December.

Damietta protesters ended a ten-month sit-in to protest expansions to the plant only after a committee of elders drafted a document by which the government is committed to carry out their demands.

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