20100907
africanews

CAIRO (Reuters) - Egyptian prosecutors arrested a director at Cairo's housing department on Tuesday, saying he illegally amassed property and $1.75 million, as part of an ongoing crackdown on corruption in Egypt's real estate sector.

The official was charged with taking bribes in exchange for tolerating building violations, according to state news website egynews.net, which did not publish the official's name.

"Investigations revealed the accused ... illegally gained 10 million pounds plus five buildings, three plots of land, partnership in a residential tower and a villa in a coastal town," the website said.

Egypt's President Hosni Mubarak vowed in June to tackle real estate corruption and said he would not allow state-owned land to be sold at a loss to investors.

He later issued a decree cancelling a contract that involved Egyptian real estate company Palm Hills after a parliamentary debate about the price paid for the land.

A court later ruled against a sale of government land to Talaat Moustafa Group, Egypt's biggest listed developer.

An appeal ruling in that case is set for September 14.

"Such events could drive away investors who want to buy shares in real estate firms ... but are good for long-term investors who will see the government is fighting corruption," said Khaled Khalil, an analyst at Beltone brokerage.