Zamalek Club land crisis: Details of the prosecution's investigations and the squandering of public funds
The Egyptian Public Prosecution issued a major surprise, releasing an official statement detailing its extensive investigations into the Zamalek Club land dispute in 6th of October City. This move comes in response to several reports submitted to oversight bodies alleging serious violations and strong suspicions of public funds being misappropriated in the allocation and execution of the club's new branch project.
Selling illusions to government entities... the mystery of the 780 million pounds
The most serious revelation from the prosecution's investigations was that the club's management sold unfinished land and buildings to official state entities whose funds are legally classified as "public funds." Controversially, these entities have no connection to sports activities, yet the club collected substantial sums from them, amounting to approximately 780 million Egyptian pounds.
The prosecution explained that these operations were carried out before obtaining the necessary sovereign approvals from the Presidency of the Republic, and before obtaining official building permits from the Urban Communities Authority, which puts these actions under the purview of the law on suspicion of profiteering and harming public funds.
A 20-year-old dream with a 2% completion rate
Going back to the roots of the crisis, the allocation of this land dates back to 2003, when it was supposed to represent a qualitative leap in the infrastructure of the White Castle (Zamalek). Despite the passage of more than two decades, a recent technical inspection by the Urban Communities Authority revealed that the actual completion rate on the ground did not exceed 2% of the total required work.
This extreme slowdown led to the land being withdrawn from the club on several previous occasions, the last of which was in 2020, before the state gave the club a “final chance” and a two-year grace period that effectively ended on April 3, 2024 without tangible progress being made, which prompted the club to request a new four-year grace period and an increase in the building area, which was met with strict conditions.
Legal process and formation of review committees
Given the seriousness of the facts, the Public Prosecution decided to escalate the investigation by appointing a high-level committee comprising experts from the Illicit Gains Authority and the General Directorate of Financial Crimes Investigation. This committee is tasked with examining all documents and financial transactions related to the project to accurately determine criminal responsibilities.
The Egyptian sports community and public opinion are awaiting the results of the committee's technical report, as the prosecution affirmed its full commitment to applying the law and protecting the state's assets, stressing that the principle of accountability will extend to everyone without exception if corruption is proven.
