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New Egyptian Economy Minister Named After Banks Scandal

April 1, 1985

CAIRO, Egypt (AP) _ Economy Minister Mustafa el-Said resigned Sunday under criticism for his handling of a banking scandal, and President Hosni Mubarak appointed a U.S.-trained economist to succeed him, the state-run Middle East News Agency said.

Mubarak swore in Sultan Abu-Ali, 57, at the presidential palace, palace sources said. Abu-Ali took a doctorate in economics from Harvard University in 1965.

Mubarak also accepted the resignation of Mohamed Shalaby, governer of the Central Bank, who was replaced by his deputy, Aly Nagm.

On Saturday, a six-month trial of 20 bankers and financiers ended with a judge ordering the impoundment of the funds of 14 individuals and two companies. Accusations against them included banking malpractices, speculation and irregular currency dealing.

The trial at the Ethics Court and the preceding investigations had prompted press criticism of el-Said’s handling of the affair.

Judge Hassan Ammar, summarizing his ruling, criticized el-Said’s decisions relating to the case and said they had caused ″an economic disaster.″

One Cairo newspaper, El-Gomhouriya, said Ammar’s judgment impounded the equivalent of $82 million.

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