Egypt’s president rejects fraud claim

CAIRO — Egypt’s president on Saturday dismissed corruption allegations made by a businessman-in-exile about the country’s military as “sheer lies and defamation.”

In viral social media videos posted over the past week, the entrepreneur alleged largescale misuse of public funds in the building of luxurious hotels, presidential palaces and a tomb for President Abdel-Fattah el-Sissi’s mother, who died in 2014.

“I’ve built presidential palaces and I will continue to do so,” el-Sissi, a general-turned-president, said in televised comments. “I am building a new country. … All of this is not mine. It’s Egypt’s.”

El-Sissi was responding to claims by contractor Mohammed Ali, who said he had worked for the military for 15 years.

The president said his government has been building some of the biggest art and culture centers in the world in the country’s $45 billion new administrative capital — el-Sissi’s brainchild located in the desert east of the capital of Cairo.

He denied corruption allegations as “sheer lies and defamation,” without elaborating. He portrayed Ali’s videos as an attempt to weaken Egypt and undermine the public’s trust and confidence in the military.

Ali said he recorded his video statements in Spain over the past week.

He claimed he left Egypt while the military owes him $13 million for services he provided. He did not provide evidence to support his claims.

Ali said his company, Amlak for General Contracting, has carried out projects with the military’s business arm, the so-called Engineering Authority.

The agency became the biggest contractor for the country’s mega projects, worth billions of dollars. However, due to many limitations either in expertise or capacity, the authority subcontracted with hundreds of civilian companies in return for a margin of profit.

Over the years, critics have questioned the expanding role of the military in the business world and economic interests and the seemingly unfair competition with the country’s private sector. They say the military enjoys advantages because it’s exempted from taxation, oversight and proper auditing.