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