The Public Prosecution in Egypt has taken new measures on Monday against those suspected of fraud at the Global Paradigm school in New Cairo, following investigations into the receipt of funds in the names of parents without their knowledge, RT reported on Monday.
The Public Prosecutor ordered the temporary freezing of the personal assets of several suspects and their families pending the Public Prosecution’s investigations into reports filed by some parents of students at the school.
The decision includes the chairman, CEO, and managing director of a consumer finance company, as well as the school’s owner, some of its shareholders, and several administrative staff members.
The Public Prosecution said that the decision was based on the findings of the investigations conducted by the relevant authorities and the report issued by the Financial Regulatory Authority, which detailed the facts and circumstances under investigation.
According to a statement from the Public Prosecution, investigations revealed evidence that those managing a consumer finance company facilitated the misappropriation of company funds for the benefit of the school owner, who was previously detained pending trial.
The investigations also uncovered that several administrative employees forged signatures attributed to parents on documents related to granting loans, as part of the cases being investigated by the Public Prosecution.
The Public Prosecution continues investigating to uncover all the circumstances of the incident and determine the criminal liability of all those found to be involved.
It assured that the suspects will face all guarantees of due process and trial in accordance with the law.
The case came to light after several parents of students at the school filed reports upon discovering that loans and credit facilities had been registered in their names without their knowledge or consent, resulting in negative impacts on their credit records.
Initial investigations revealed that the school’s board chairman contracted with a finance company to obtain educational credit facilities in the names of several parents, relying on their personal data, copies of identification documents, and forged signatures.
According to the prosecution, the company entered into 839 contracts for credit facilities totaling approximately LE 321 million, in the names of parents who had neither applied for nor consented to these facilities.
The incident became a matter of public concern in Egypt after President Abdel Fattah al-Sisi ordered an investigation into the matter, responding to appeals from parents.
He also ordered that similar incidents be examined and oversight be tightened to prevent their recurrence.
Furthermore, the Minister of Education placed the Global Paradigm School under financial and administrative supervision to ensure the continuity of the educational process and protect the rights of students and parents, pending the ongoing investigations.
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