Morocco’s National Judicial Police have launched a wide-reaching investigation into allegations of fraud and financial irregularities surrounding a stalled real estate project in Sidi Maârouf, on the outskirts of Casablanca, following a complaint filed by Attijariwafa Bank.
According to Hespress AR sources familiar with the case, the inquiry, ordered by Casablanca’s Public Prosecutor General, Saleh Tizari, centers on two brothers accused of securing substantial bank loans under false pretenses for a housing project that began over 15 years ago but remains incomplete.
The initial complaint outlines a series of potentially criminal acts, including fraud and misappropriation of funds, tied to a housing development that triggered mass protests from buyers as early as 2011. Despite paying deposits totaling more than 6 billion dirhams, purchasers have yet to receive their homes.
Though a second loan of 10 billion dirhams was granted to revive construction and honor purchase agreements, work on the site has remained halted for over two years.
Investigators from the National Judicial Police are expected to summon a number of real estate developers, company executives, and accountants. Financial records suggest some of these individuals received vast sums of money from the troubled development firm, raising suspicions over discrepancies between the funds received and services rendered.
In a particularly alarming discovery, a shell company was allegedly established to transfer assets from the loan-receiving firm, potentially for illicit resale at inflated prices that did not reflect those declared to the public or the financing bank.
Investigators are focusing on inconsistencies in the handling of more than 34 billion dirhams funneled into the real estate company’s accounts. The firm is accused of defaulting not only on its financial obligations to buyers, but also on its loan repayments to the bank.
In a rare move, Attijariwafa Bank initiated criminal proceedings against the developers, a decision that signals a possible shift in the financial sector’s approach to loan-related misconduct.
The bank has already filed two foreclosure motions before the Casablanca Commercial Court to auction off two villas mortgaged as collateral. It is seeking to recover over 50 billion dirhams.
The scandal may serve as a precedent for future legal action against other developers accused of diverting funds meant for real estate ventures. Meanwhile, dozens of aggrieved buyers remain in legal limbo, having paid in full for properties they were never able to occupy.
Authorities have not ruled out further arrests or criminal charges as the investigation unfolds.
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