During Middle East Paper – SIMO’s general meeting held on Sunday, Eng. Saeed Wardany was named as the caretaker executive director of the firm until electing a new chairman of the board of director.
Clashes were erupted during the meeting among the assembly members alongside the attendees and the firm board of directors after SIMO Chairman Laila Mohamed Ghanem’s announced her resignation.
Moustafa Abdel Azeim, member of SIMO Shareholders Union, said the situation in the company is getting much worse since the privatization of SIMO in 1997. Consequently, a number of troubles has been emerged between SIMO (SIMO.CA) and the holding company which led to lodging lawsuits, he added.
SIMO and the holding company have eventually agreed on reducing the employees’ share from 10% to 1.8% of SIMO’s total stakes.
Abdel Azeim has attributed Laila Ghanem’s resignation to showing favor to particular names in the firm and to the nepotism which reversely affect the firm’s business. He further added that SIMO has turned to ‘running a family business’ instead of adopting ‘business is business’ policy. This has led to Ghanem’s loss of control and her resignation afterwards.
Abdel Azeim also stated that the inefficient management and the deterioration in SIMO’s financial stance have reversely affect the workers’ wages who went on strikes as a result.
