Juhayna Food Industries’ shares took a hit on Sunday as news spread of their CEO and Deputy of Directors Seifeldin Thabet was called for questioning and detained.

Thabet’s detention comes as part of an investigation against Juhayna’s ex-chairman  Safwan Thabet regarding “personal accusations unrelated to the company,” who was arrested in December.

Juhayna confirmed the news in a disclosure to the Egyptian Exchange (EGX).

Safwan Thabet is accused of inciting violence, joining an outlawed group, financing a terrorist organization and other charges, including joining an outlawed group, calling for unauthorized protests, inciting violence and financing a terrorist group. He was detained for 15 days.

In case the he is convicted of financing terrorism; he will be added to terrorism lists and their assets will be seized.

 “The company has no further information regarding the detention/investigation to disclose at this point,” Juhayna said in its EGX statement.

Juhayna’s shares dropped by 17 percent as trading opened on Sunday before recovering slightly to be 10.85 percent down at their opening price at 0900 GMT.

 The Chairman of the board of directors emphasized that the company is committed to all disclosure and transparency rules specified by the Financial Regulatory Authority (FRA).

Security sources told Reuters in December that Juhayna’s chairman was detained for alleged “financial irregularities”. The Interior Ministry has not commented.

In 2015 a judicial committee established by the government issued a decision ordering the seizure of Safwan Thabet’s assets due to alleged links to the Muslim Brotherhood.

The company achieved profits amounting to LE 383.74 million during the first nine months of 2020, compared to profits of LE 291 million in the comparative period in 2019, including minority rights.

The company's sales increased during January-September period to LE 5.78 billion, compared to sales of LE 5.72 billion in the comparative period of 2019.