Orascom will continue to contest Algerian tax bill

Orascom Telecom of Egypt has lost its second appeal to Algerian tax authorities over a tax bill of US$600 million (Dh2.2 billion) but says it will continue to contest the charge in the country’s administrative courts.

• The largest mobile operator in the Middle East by number of customers had to pay $230m of the tax bill as a deposit to continue the dispute process and is prohibited from sending more than $250m in profits to its Cairo headquarters until the case is resolved.

• Sources familiar with the company say Orascom is being pressured by Algerian authorities to leave the country and sell its Djezzy operations there, its largest single business, to a local buyer.

  The dispute has escalated since diplomatic relations between Egypt and Algeria deteriorated in the wake of two controversial football matches between the North African nations that were marked by crowd violence.

• Naguib Sawiris, the telecommunications tycoon who founded Orascom, has said the company will leave Algeria if told it is no longer welcome there.

  Mohammed Omran, the chairman of Etisalat, later said the UAE national operator would be interested in acquiring Djezzy.

  Mr Sawiris said last month Orascom had received a letter from Algerian authorities “contemplating” that the government had a right of first refusal over any possible sale of the company’s Algerian network.