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LCHR asks the Egyptian President and Prime Minister: Why is Asiut medicine factory offered for sale?
The privatization of the health and pharmaceutical sector deprives people of their right to medical treatment and healthcare. We must not sell people's health or leave their medication to the mercy of the free market. The state must support this sector by stopping the selling process of hospitals and pharmaceutical companies. Privatization of the pharmaceutical sector for very low prices is a waste of the state's wealth and a great loss to the workers' right to their shares in these companies where they have worked for more than 50 years. The government must not dispose of these shares without considering the rights of the workers. These companies' value must be estimated according to Egyptian and international laws under the supervision of the corresponding authorities.
A few months ago, the LCHR has received complaints from some workers and board members of CID medicine company about manipulation of the assessment of the company to offer it for sale. This threatens the medicine industry, as CID company represents 23% of the medicine market in Egypt, and this company owns the intellectual property right of 310 registered pharmaceuticals in the Ministry of Health.
Today, the LCHR has received complaints about selling Asiut medicine factory, which is one of the biggest medicine factories in Egypt. This factory was related to CID medicine company. The ownership of this factory was transferred to the buying company for a price of LE 15.2 million and the factory's name was changed to Southern Egypt Company for Medicine. Then the Minister of the Business Sector in his decision no. 235 issued on 7/11/1997 has estimated the value of this factory with LE 40 million. The factory owners want to sell it with this price. Today this price is not suitable compared to the value of the factory or the land it is built on: 58,800 square meters with a price of LE 500 per square meter in 1993 amounted to a price of LE 29,400 million. The price of the land these days is around LE 3000 per square meter, so the value of the land is even higher.
In 1999, auditing reports indicated that Asiut medicine factory has achieved profits of about LE 5.8 million, gained more property rights, reduced its debts and increased its capital. In 2006, the factory has achieved LE 11,302,558 as profits, and the total profits achieved from 1999 until 2006 are LE 60,525,254. This proves how unprofitable it would be to sell the factory.
Unfortunately, despite the profits made, the head of the buying company wants to worsen the condition of the factory in order to sell it: he has made the factory produce large quantities of unwanted types of medicine, and stored it in the factory's warehouses, which resulted in extreme losses and will lead to decreasing its price because of low profits.
LCHR asks the President and the Prime Minister for whose favor Asiut medicine factory will be sold. Why are 40% of the shares of five medicine companies being offered for sale? These companies are CID medicine company, Egypt for medical formulations, El Masreya Letegaret El Adweya, El Gomhoreya Letegaret El Adweya and El Nasr factory for chemical manufactory.
LCHR sends the complaints of the workers of CID medicine company and Asiut medicine factory to the President and the Prime Minister to stop the procedures of selling the medicine factory and company and stop wasting our wealth. LCHR also calls on all national forces and civil society organizations to unite in solidarity with the workers and their case presented before the administrational judiciary court (no. 12265/60 judicial), which will be discussed in a session on 25/7/2006 to stop the selling procedures and protect citizens' right to healthcare.
For more information, please contact the Center.