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Extracted Oils Company and its Products, a subsidiary of the Holding Company for Food Industries, has revealed the latest developments in the case of undelivered «Fayrouz» subsidized oil (0.8 liter) shipments to wholesale companies and consumer complexes, confirming that a package of legal, financial, and regulatory measures has been implemented while investigations continue before the competent authorities.
The company stated that an inventory conducted jointly by the marketing division and the customer accounts department uncovered undelivered quantities to wholesale companies and consumer complexes between September 16 and September 30, 2025, totaling 83,508 cartons of «Fayrouz» subsidized oil (0.8 liter), valued at approximately EGP 29.562 million at the subsidized price, and at approximately EGP 52.10 million at the company's prevailing free-market selling price.
The company's Managing Director issued Decision No. 445 of 2025, dated November 8, 2025, forming an investigation committee that immediately initiated a series of measures. These included suspending the accounts and transactions of transport contractor Hanafi El-Sayed Mahmoud, reviewing his accounts and receivables up to September 30, 2025, halting the loading of his trucks, and freezing all his dues with the company. Officials responsible for following up on subsidized oil deliveries within the marketing division were also suspended from duty as of November 2025, with the suspension remaining in force to date, and the case was referred to the Legal Affairs department for investigation.
The company filed an official report numbered 327 of 2025 (Public Funds) dated November 9, 2025, against the transport contractor regarding the shortfall in subsidized oil deliveries, and notified the Public Prosecution under the same case number at Moharram Bek Administrative. Investigations remain ongoing before the Public Funds Prosecution and the Illicit Gains Authority in Alexandria.
In parallel, the company confirmed that it has implemented measures to reinforce its internal control framework for subsidized oil deliveries, including the development of a new documentation cycle to tighten oversight across factory divisions, marketing, the gateway, the finance division, and the internal audit division, with the aim of strengthening controls over transportation and delivery operations.
A reconciliation carried out with the General Company for Wholesale Trade regarding the transport contractor's deliveries revealed a total shortfall of 84,710 cartons of 0.8-liter oil over the period from July 2024 to October 2025. An official certificate documenting this shortfall was issued by the General Company for Wholesale Trade and submitted to the investigating authorities, namely the Public Funds Prosecution and the Illicit Gains Authority, on April 20, 2026, to complete the inquiry and prepare the required report.
On the legal front, the company's board of directors approved at its session No. 406, held on February 1, 2026, the appointment of Saad El-Din Law Firm and Legal Consultations to handle the case, with total fees of EGP 1.350 million, in addition to a success fee of 3% of the value of the goods in question should a final conviction be issued.
Regarding financial treatment, the company explained that it charged the expenses for the period from July 1 to December 31, 2025 with the value of crude oil and manufacturing costs related to the missing quantities, amounting to approximately EGP 48.416 million. The value of the missing goods was also recorded at the free-market selling price, totaling approximately EGP 52.109 million, as a receivable from the transport contractor, while being recognized as a payable balance in the form of accrued revenue in accordance with the expense-generating incident.
At the institutional oversight level, the Managing Director and CEO of the Holding Company for Food Industries issued Decision No. 255 dated November 10, 2025, forming a committee to examine the incident. The committee concluded that responsibility for the delivery shortfall lies with the marketing division, based on its assigned mandate to oversee the delivery and receipt of subsidized oil within the ration card system.
The company concluded by confirming that the report of the committee formed under Managing Director Decision No. 445 of 2025, together with the report of the head of the internal audit division and the report of the audit committee, were all presented to the board of directors during its sessions Nos. 404 and 405 held in November 2025, and session No. 406 held in February 2026, as part of the ongoing follow-up on the incident and the measures being taken.
Source: Youm7