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### Viewing cable 10CAIRO203, FORMER HOUSING MINISTER RESIGNS FROM PARLIAMENT AMIDST

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10CAIRO203 | 2010-02-15 14:02 | 2011-02-16 21:09 | CONFIDENTIAL | Embassy Cairo

`

    VZCZCXRO3787
    RR RUEHROV
    DE RUEHEG #0203/01 0461436
    ZNY CCCCC ZZH
    R 151436Z FEB 10
    FM AMEMBASSY CAIRO
    TO RUEHC/SECSTATE WASHDC 0239
    INFO ARAB ISRAELI COLLECTIVE
    RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC

` `

    C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 000203

    SIPDIS
    FOR NEA/ELA AND DRL/NESCA

    E.O. 12958: DECL: 2035/02/15
    TAGS: PGOV PHUM KCOR EG
    SUBJECT: FORMER HOUSING MINISTER RESIGNS FROM PARLIAMENT AMIDST
    CORRUPTION ALLEGATIONS

    REF: 09 CAIRO 2268; 08 CAIRO 2491

    CLASSIFIED BY: Donald A. Blome, Minister-Counselor, State, ECPO;
    REASON: 1.4(B), (D)

    ¶1. KEY POINTS

    -- (SBU) On February 2, former Housing Minister Mohammed Ibrahim
    Soliman resigned from parliament in the midst of press reports that
    the Public Prosecutor is investigating him for corruption.

    -- (C) Independent MPs had filed a criminal complaint against
    Soliman in January 2009 for alleged corrupt real estate deals
    involving family members and senior GOE officials.  Soliman is
    widely believed to have been a corrupt housing minister during his
    1993 to 2005 tenure.

    -- (C) According to contacts, the GOE supported Soliman as housing
    minister and during his 2005 parliamentary run, but eventually
    backed away following MP allegations that the GOE acted illegally
    in June 2009 by nominating Soliman as CEO of a government oil
    company.

    -- (C) Although one of the independent MPs who filed the January
    2009 criminal compliant is certain the case will go to trial
    because of strong evidence, NGO observers believed the GOE would
    block the case from going to trial over concerns Soliman could
    implicate senior GOE officials.

    ¶2. (C) Comment:  Soliman is the first MP to resign over corruption
    since the resignation of an NDP MP following his conviction on
    bribery charges in May 2007.  Soliman's case is particularly
    significant in light of the alleged large scale of his corrupt
    dealings as housing minister for 12 years, and his reportedly close
    relationship with President Mubarak.  Soliman's forced resignation
    is a rare instance of independent members of parliament succeeding
    in causing political damage to a regime insider.  End comment.

    ---------------------------------------

    Former Minister's Resignation

    ---------------------------------------

    ¶3. (C) On February 2, former Housing Minister Mohammed Ibrahim
    Soliman resigned from parliament following press reports that the
    Public Prosecutor is investigating him for allegedly embezzling and
    misappropriating public funds.  47 independent Members of
    Parliament, led by Ala Abdel Manaam, had submitted a criminal
    complaint to the Public Prosecutor in January 2009 alleging Soliman
    engaged in corrupt land deals during his 1993-2005 tenure as
    housing minister.

    -----------------------------------------

    An Alleged History of Corruption

    -----------------------------------------

    ¶4. (C) Independent MP Ala Abdel Manaam told us he submitted
    documents and other evidence to the Public Prosecutor in January
    2009 attesting to Soliman's gifts of valuable public land to family
    members, and various corrupt real estate deals involving senior GOE
    officials.  Ahmed Al-Naggar, an analyst specializing in corruption
    issues at the GOE-funded Al-Ahram Center, told us that as Housing
    Minister Soliman tried to give the Press Syndicate a LE 3 million
    (USD 525,000) bribe in 2005 to exclude a particular consulting
    engineer from a real estate deal between the syndicate and the
    ministry.  According to NGO contacts, starting in about 2002

    CAIRO 00000203  002 OF 002

    Soliman began raising eyebrows by publicly discussing his lucrative
    land deals, including a public boast that he owned seven villas.

    --------------------------------------------- ----

    A History of GOE Support for Soliman

    --------------------------------------------- ----

    ¶5. (C) Until recently, the GOE had a history of backing Soliman.
    According to NGO contacts and press reports, President Mubarak
    presented Soliman in 2005 with a prestigious award, "The First
    Class Medal of the Republic," following his departure from the
    housing ministry after 12 years of service.  Human rights attorney
    Siah Mahfouz said the GOE certified in a 2006 mandatory review that
    all Soliman's earnings were legal during his tenure as housing
    minister, and backed him in his successful 2005 parliamentary race.
    Human rights activist Engi Haddad who worked with presidential son
    Gamal Mubarak in the ruling National Democratic Party told us Gamal
    pushed in 2003 and 2004 for Soliman's ouster from the housing
    ministry, but President Mubarak resisted before easing Soliman out
    in 2005.  Haddad believed Soliman had a "close, personal
    relationship" with President Mubarak.

    ¶6. (C) The GOE's most recent show of support for Soliman -
    appointing him in June 2009 as CEO of the government-owned
    Petroleum Marine Services Company - rankled the group of
    independent MPs who filed the January 2009 criminal complaint
    against Soliman.  The MPs responded by requesting an investigation
    into the appointment's violation of law 159 (1984), which prohibits
    MPs from directing companies or serving on boards, except under
    extraordinary circumstances.  Manaam believed Soliman's television
    appearance in December 2009 defending himself by touting his ties
    to President Mubarak embarrassed Mubarak, and caused Mubarak to
    finally withdraw his support.  Press reports that the Public
    Prosecutor had opened an investigation of Soliman for corruption
    began to appear on January 2.

    -------------------

    Soliman's Fate

    --------------------

    ¶7. (C) Manaam told us he believes Mubarak is now unwilling to block
    an investigation because Soliman "had gone too far" in asserting
    his ties to Mubarak on television.  Manaam believed the documentary
    and other evidence against Soliman is strong, and he was certain
    the Public Prosecutor would file charges against Soliman and order
    a trial.  In contrast, several NGO contacts expected the Public
    Prosecutor would "freeze" the investigation of Soliman as a result
    of GOE pressure.  They believed the GOE would not allow the case to
    move forward because of fears that Soliman could implicate senior
    GOE officials involved in his corrupt deals.
    SCOBEY

`