Cairo – Business News Report|| The Central Audit Bureau’s limited review of the periodic financial statements of the Egyptian New Urban Communities and Development Authority for the fiscal year ending June 30, 2026, has highlighted several critical financial observations. These include overdue receivables, debtor balances, operational losses, and challenges related to land development and encroachments on company properties.
The report specifically identified a debt owed by Magic Dreams, the former tenant of the Merilland Casino, amounting to approximately 330.185 million Egyptian pounds in unpaid rent. Additionally, the authority noted a value-added tax liability of 19.7 million Egyptian pounds and another debtor balance of 3.612 million Egyptian pounds for which no legal recovery measures have been initiated yet.
Legal Actions and Operational Responses
In response to these findings, the Egyptian New Urban Communities Authority clarified that it had taken over the operation of the Merilland Casino from the tenant to manage its assets directly. The company stated that it has filed complaints against Magic Dreams with the Public Prosecution for Financial Crimes. Investigations are currently ongoing, and necessary adjustments will be made immediately upon the issuance of the prosecutor’s decision.
Furthermore, the audit bureau recorded a debt owed to the General Electric Projects Company, known as Elegyct, totaling 21 million Egyptian pounds. This debt dates back more than eight years, during which no legal actions were taken to recover the funds. The authority responded that the matter is under review and study to determine appropriate next steps.
Financial Losses and Asset Challenges
The total of the aforementioned balances, including those related to Magic Dreams, value-added tax, other debtor balances, and the Elegyct debt, amounts to approximately 374.497 million Egyptian pounds, according to the figures cited in the report. Beyond receivables, the audit noted operational losses from electricity sales services reaching 11.511 million Egyptian pounds for the same period.
The authority indicated that this issue is also being studied to take necessary measures, though no specific details regarding the causes or remedial actions were provided in their response. Regarding real estate assets, the report mentioned a swap land plot in New Alamein City covering about 60 feddans, valued at roughly 821.5 thousand Egyptian pounds. The company explained that infrastructure has not yet reached the site, hindering development plans.
Additionally, encroachments were detected on approximately 2,074 feddans across various areas owned by the authority. The company confirmed submitting requests to the Government Disputes Settlement Committee to resolve these issues and secure favorable decisions. These observations reflect a range of financial, operational, and real estate files the authority is actively managing to recover debts and protect its assets.
This story was produced in the newsroom from the disclosed sources named above.
