General Inspectorate of Finance Uncovers “Serious Irregularities” in Public Contracts

Rabat, Morocco – Qualitative inspection reports from the General Inspectorate of Finance (IGF) have revealed “serious irregularities” in the management of several public contracts. These contracts were awarded by public institutions and enterprises to companies that subsequently declared bankruptcy, raising serious questions about adherence to the legal provisions governing public procurement in Morocco.


Failure to Apply Law Leads to Undue Financial Burden

The audit operations conducted by the IGF extended over several months, specifically targeting contracts that became stalled after the contracting companies entered judicial liquidation proceedings. The reports noted a clear failure to implement Article 31 of Decree No. 2.01.2332, which pertains to the general administrative terms and conditions for study and works contracts. This article stipulates the project owner’s right to terminate the contract by law, without compensation, in the event of the contracting company’s asset liquidation. However, the Inspectorate observed “hesitation” among several authorizing officers in implementing this measure, leading to unjustified financial burdens on public administrations.


Lack of Follow-up and Oversight Exposes Officials to Accountability

The audited documents also revealed a clear absence of procedures for monitoring works and services, a failure to adhere to legal deadlines for phased deliveries, and a disregard for fundamental observations from internal oversight committees. The reports further noted a complete absence of any requests from the liquidators (“syndics”) of the contracting companies to continue executing the contracts, despite such actions requiring explicit judicial authorization.

The reports attributed responsibility for what they termed “administrative bypass” of essential procedures, which could lead to administrative sanctions against authorizing officers and senior officials in procurement and contract management departments. The IGF indicated that this negligence harmed public finances and failed to protect project owners from execution failures.


Broader Context of Rising Corporate Bankruptcies and Public Finance Challenges

These investigations come within a context where a recent study by “Allianz Trade” points to a rise in corporate bankruptcies in Morocco. The study linked this increase to longer payment terms, the lingering effects of the COVID-19 pandemic, climate fluctuations, and inflation. The study projected that the pace of bankruptcies would continue to accelerate in 2025, after a 13% increase in 2024, rising from 14,200 to 16,100 cases.

The General Inspectorate of Finance emphasizes that these investigations are part of its efforts to establish transparency and accountability in public procurement management, by improving the technical and administrative efficiency of public institutions and ensuring project execution according to quality and effectiveness standards. This approach is considered an urgent necessity to ensure the sustainability of public finances and enhance citizen trust in public administration.

About محمد الفاسي