UPDATE 3-Russian wheat cargo in Egypt had false document-SGS

* SGS says probed Russian wheat cargo had false document

* Importer Egyptian Traders Co says document definitely valid

(Recasts with SGS comment, EL Attal's response)

By Sybille de La Hamaide and Maha El Dahan

PARIS/CAIRO, June 11 (Reuters) - Cargo inspector SGS (SGSN.VX) said on Thursday a falsified SGS quality certificate had been used on a Russian wheat shipment imported by Egyptian Traders Co, while the importer said the document was definitely valid.

"We know that on this cargo a false SGS certificate has been used," Jean-Luc de Buman, Senior Vice President, Corporate Communications and Investor Relations, told Reuters by phone.

He said his firm had not inspected the cargo, seized last month after Egypt's prosecutor ordered a quality investigation, that has led to intense scrutiny and disruption of Russia's grain exports to one of the world's largest wheat buyers.

The chairman of Egyptian Traders Co said the documents used for the Russian wheat shipment it imported were "definitely" valid and said the case was becoming "too political". Responding to comments concerning the use of forged documents from others involved in the deal, Chairman and Chief Executive Ashraf El Attal told Reuters: "I know nothing about that."

Asked if he was certain of the validity of documents for the wheat shipment now to be re-exported, he replied: "Definitely."

"Everyone is saying whatever they want now, so let everyone talk," he said. "This is becoming too political, we are not the target ... But we are being squashed in the middle."

Egypt had turned increasingly to Russian wheat this year to take advantage of lower freight costs, relying heavily on local grains importers like Egyptian Traders to supply Black Sea wheat, rather than using larger international suppliers.

SGS, which is the world's leading company in inspection, verification, testing and certification services, said it had not inspected the probed cargo, on a ship called Theoforos.

"What we know is that we did not inspect the cargo we are talking about, so if there is a (SGS) certificate for it, it is a false one," de Buman said from the SGS (SGSN.VX) headquarters in Geneva.

INVESTIGATION

Earlier on Thursday, Hesham Ragab, legal adviser to Egypt's trade and industry minister, said in a statement emailed to Reuters: "There is an investigation underway into whether or not the documents pertaining to the wheat shipment in question were all accurate or if there was any forgery involved.

El Attal, who is also president of the international Grain and Feed Trade Association (GAFTA), an organisation with offices in London, Geneva, Beijing and Kiev, said the Egyptian probe into forged import papers made no sense since the cargo was being re-exported.

The Egyptian prosecutor ordered the investigation in May following the discovery of dead bugs and impurities in the more than 50,000 tonne shipment.

Egypt has suspended all grain contracts with Egyptian Traders after the prosecutor ordered the re-export of the shipment and told the firm to repay $9.6 million to Egypt's main state wheat buyer, GASC. [ID:nL7200129]

Egypt has bought almost a quarter of the wheat exported by Russia in the current marketing year, and Egyptian Traders has won a large proportion of GASC tenders in the past year.

The Russian Grain Union has called seizures of Russian wheat provocative and an attempt to lower prices.

Russian grain firm Rosinteragroservis (RIAS), the company that sold and shipped the wheat to Egyptian Traders Co, said the original documents of the cargo had been issued by Control Union in Russia, as agreed with the buyer.

"But apparently there are other certificates circulating for that vessel now," Geneva-based commercial director of RIAS, Chris Vanhonacker, told Reuters.

For a Timeline of the Egypt, Russia grain spat please click on [ID:nLM21419] (Additional reporting by Mahan El Dahan and Edmund Blair in Cairo, editing by Anthony Barker)