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Al-Ahram Weekly 28 Jan. - 3 Feb. 1999 Issue No. 414 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 28 Jan. - 3 Feb. 1999 Issue No. 414
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Focus Economy Opinion Culture Features Living Travel Sports People Time Out Chronicles Cartoons Letters Al-Rayan's refund
process falters
By Mona El-Fiqi
In an attempt to close the file of the fallen Al-Rayan money investment company, the government has decided to repay Al-Rayan's small deposits of less than LE10,000 by March 1999.Al-Rayan company was one of the financial firms established in the mid-eighties to channel savings into investment projects. The company failed to repay its depositors when the government instructed it to restructure its financial systems.
Last November, the prime minister and the ministers of economy, finance and planning agreed on a comprehensive repayment plan for Al-Rayan small depositors, who represent 72 per cent of all depositors.
According to the schedule, investors in the first category with deposits of less than LE5,000 should have received their money before the end of Ramadan. But due to the large numbers of depositors who showed up at Al-Rayan's two headquarters in Ain Shams and Giza, many were not able to withdraw their money. Dozens of depositors stood in front of Al-Rayan's Ain Shams headquarters waiting to receive their money when the door was closed without any explanation. An employee announced: "The repayment process has been stopped and we are waiting for instructions from the prosecutor-general."
Frustrated depositors crowd in front of Al-Rayan headquarters
photo: Abdel-Wahab El-SeheitiPeople had a lot of questions but no answers. Awni Mohamed Fawzi, who has a deposit of LE3,600, said that he went to the Giza headquarters only to be told that his name is registered in Ain Shams. "According to the schedule, I should have been repaid in the last week of Ramadan, yet I have been coming here everyday for 10 days, but in vain. They do not even tell me when to come back," said Fawzi
Mahmoud Hassan Ibrahim, assistant professor at Cairo University and a depositor, said that policemen treated depositors badly. "They sometimes beat up the people, which is inhuman," said Ibrahim.
Most depositors complained that the repayment process was not well organised. Ibrahim was refused payment because his name was omitted by mistake in the list. "I do not know what to do now, I really need my money," said Ibrahim. He added, "If the problem is lack of liquidity, officials should inform us when to come back instead of leaving us to queue up here everyday."
Ibtesam Mohamed, a school headmistress and a depositor, said: "The last time, when we were given 15 per cent of our deposits, things were well organised, but this time, there isn't even a list to inform people of their scheduled payment date."
Mohamed Ahmed, another depositor from Alexandria, said: "I am an old man. I pay LE20 in transportation fees in order to come here daily to receive my money, but to no avail."
Assem El-Ghaish, a legal consultant at the prosecutor-general's office, explained: "The repayment process was stopped pending the announcement of a new programme for those who failed to show up on time from the first category and also for those with larger deposits of less than LE10,000." El-Ghaish said that 37,500 depositors from the first category have already received their money -- a total sum of LE72 million.
"When all small depositors are paid, an amount of LE263 million will have been given back. However, there are no instructions concerning those who have deposits of more than LE10,000," said El-Ghaish. He added that in order to solve the problem of overcrowding, new headquarters will be opened in Heliopolis.
