Egyptian harbor scandal may touch top people

December 23, 1981

A government corruption scandal in Egypt is threatening to snowball into a scandal reaching the highest echelons of the nation's government - including brothers of the late President Anwar Sadat.

In the trial at which Egyptian Parliament member Rashad Osman was convicted, he said Sadat's brothers ''terrorized'' traders at the Alexandria harbor and forced them to pay ''royalties.''

When Sadat heard of this, Osman said, he forbade his brothers from entering the harbor. Osman is appealing the order that he be detained for a year and that his $80 million worth of property be seized.