Central Authorities Investigate Financial Irregularities in Local Governments
The central authorities of the Ministry of Interior in Morocco have urgently mobilized officials in various regions, including Casablanca-Settat, Rabat-Salé-Kénitra, and Marrakech-Safi, in response to alarming reports highlighting new financial mismanagement issues related to local debts. These reports indicate that several local leaders are attempting to "roll over" outstanding payments owed to contractors, redirecting these funds toward contracts that are suspected of being used to advance electoral agendas as the legislative elections approach in September.
According to informed sources cited by Hespress, the central administration's response was triggered by a rising tide of complaints from small and medium-sized enterprises (SMEs) that are facing delays in receiving their payments. Meanwhile, some elected councils continue to manipulate disbursement mechanisms for purposes that stray far from the public interest. These complaints reveal that local governments are citing financial difficulties to justify their delays in settling debts, all while simultaneously initiating new expenditures outside any competitive framework.
Moreover, sources confirmed that the local finance department has received not only the aforementioned complaints but also field reports indicating that elected officials are linking the settlement of contractor payments to the completion of specific projects related to local infrastructure, decoration, and event organization. Such practices have raised serious suspicions regarding their true objectives, particularly as these activities have surged in recent months, especially concerning contracts for decoration equipment linked to national events and festivals. This trend has resulted in these contracts representing a significant proportion of total local expenditure.
The reported irregularities extend to the extensive use of request forms to facilitate expenditures and fragmented contracts outside normal competitive processes. Evidence has surfaced that some mayors have resorted to splitting large contracts to avoid the requirement of formal bidding, intentionally directing these contracts to specific suppliers and contractors with questionable ties to the elected councils. This practice typically involves request forms with values not exceeding two million dirhams, a threshold that inherently allows for direct negotiations devoid of transparency.
In some documented cases outlined in reports submitted to the supervisory authority, there have been instances where fictitious documents were issued to simulate the delivery of goods, thus circumventing legal guidelines. This blatant violation of the Ministry of Interior's directives, which aim to reduce payment delays and enhance transparency in dealings with local government contractors, poses a significant threat to the business climate and the financial stability of enterprises. The ministry has emphasized that enhancing transparency in public expenditure processes is a national priority.
It is noteworthy that contractors have lodged complaints with local authorities, accusing elected officials of exerting pressure to accept new contracts in exchange for the expedited release of their pending payments from previous contracts before the end of their electoral term. Testimonies have converged on a unified pattern where debts are held as leverage, only to be released under the condition of accepting dubious financial arrangements, resembling organized extortion primarily targeting small businesses that lack the financial and legal resources to resist.
In light of these findings, the central administration has instructed local administrations to form regional committees to audit the payment files for contracts, ensuring compliance with the laws governing public spending. There are strict directives for local officials to take urgent measures to resolve existing disputes between municipalities and creditor businesses, safeguarding public funds from potential electoral exploitation.
As reported by hespress.com.
