May 26, 2011 / 10:43 AM / in 7 years

CORRECTED - Egypt court fines Ajwa nonexecutive chairman

(Corrects headline to show court fined nonexecutive chairman; corrects text to clarify charges, title of nonexecutive chairman; adds attorney’s comments)

CAIRO, May 26 (Reuters) - An Egyptian court fined Ajwa Food Industries (AJWA.CA) Nonexecutive Chairman Mohamed Bin Issa Jaber Al Jaber 20 million Egyptian pounds ($3.4 million) on Thursday for untrue facts documented in company records, his lawyer said.

The Saudi national was tried in his absence last December and was sentenced to two years in prison and a 2 million pound fine. [ID:nLDE70006Y]

“The imprisonment sentence was reversed and the fine charged by the court has been issued against and is to be paid by the company,” said lawyer Hazim Rizkana at Helmy, Hamza and Partners in Cairo.

Rizkana said in a statement that the charges related to “untrue facts being documented in the company records by members of the company administration,” and he added that this was the responsibility of the company’s administration.

“The charges are expressly against Sheikh Mohamed in his capacity as nonexecutive chairman of Ajwa, for acts that were performed by the employees of the company and not by him personally,” Rizkana said.

The company’s shares were trading at 3.42 pounds, down 0.3 percent, at 1025 GMT, while the benchmark index was trading 1.4 percent higher. (Reporting by Ehab Farouk; Writing by Dina Zayed; Editing by Edmund Blair) ($1=5.953 Egyptian Pound)

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