Egypt Public Prosecution Freezes Assets in New Cairo School Fraud Investigation

The Public Prosecution in Egypt has implemented new measures against individuals suspected of fraud at the Global Paradigm school in New Cairo, following investigations into funds received in the names of parents without their knowledge, as reported by RT on Monday.

The Public Prosecutor ordered the temporary freezing of personal assets belonging to several suspects and their families while investigations proceed, based on reports filed by parents. The order applies to the chairman, CEO, and managing director of a consumer finance company, alongside the school's owner, select shareholders, and several administrative staff members. According to the Public Prosecution, the decision stems from investigative findings by relevant authorities and a Financial Regulatory Authority report detailing the circumstances.

Investigations

According to the Public Prosecution's statement, findings indicate that consumer finance company managers facilitated the misappropriation of company funds for the benefit of the school owner, who remains detained pending trial. Furthermore, administrative employees allegedly forged parent signatures on loan documents as part of the ongoing probe.

The Public Prosecution continues its inquiry to determine criminal liability and uncover all details surrounding the incident, emphasizing that all suspects will receive due process under the law. The scandal emerged after parents discovered unauthorized loans and credit facilities registered in their names, which damaged their credit records.

Initial findings revealed that the school's board chairman arranged educational credit facilities with a finance company by utilizing parents' personal data, identification copies, and forged signatures. The prosecution noted that the company established 839 credit facility contracts totaling roughly LE 321 million under the names of unsuspecting parents.

Sisi Intervenes

The case gained national attention after President Abdel Fattah al-Sisi ordered an official investigation following appeals from affected parents, while also calling for tighter oversight to prevent future occurrences. In response, the Minister of Education placed the Global Paradigm School under administrative and financial supervision to safeguard student and parent rights and maintain educational continuity during the investigation.