Finance inspectors probe alleged kickbacks and payment delays in public contracts

Morocco’s General Inspectorate of Finance has accelerated investigations into alleged irregularities surrounding delayed payments for private companies involved in public contracts, amid suspicions of bribes paid to fast-track disbursements, informed sources told Hespress AR.

The probe reportedly stems from multiple complaints and reports submitted by contractors, who say intentional delays by billing and payment officials within public institutions and state-owned enterprises (SOEs) have plunged several companies into deep financial crises, some forced to cease operations entirely.

Inspectors have requested extensive documentation from purchasing and finance departments across numerous public bodies. Their preliminary findings indicate a significant backlog of pending payment files, with mounting evidence of unjustified delays in settling invoices for completed projects.

Some of the invoices under scrutiny pertain to contracts worth substantial sums, and the withholding of payments has reportedly strained companies’ ability to meet loan obligations and settle debts with suppliers.

Investigators are also examining internal inconsistencies between the personal wealth of certain public employees involved in payment and procurement procedures and their official incomes. Real estate, movable assets, and other holdings, often registered in the names of spouses, children, or relatives, are being evaluated as part of a parallel financial audit that could lead to administrative sanctions or judicial referrals.

The internal probes coincide with independent investigations launched by the implicated public institutions themselves, particularly in cases involving alleged extortion of contractors in exchange for payment approvals.

Delayed payment practices have long been cited as one of the major threats to the viability of Morocco’s small and medium-sized enterprises (SMEs). Analysts warn that such delays hinder daily operations due to limited capital reserves, particularly for very small enterprises.

According to data from Inforisk, a Moroccan SME observatory, overdue payments are directly linked to 40% of business bankruptcies nationwide. Nearly 3,600 companies have reportedly shut down permanently as a result.

Further, the finance inspectors noted repeated violations of standard procedures governing payment eligibility, especially in projects involving companies undergoing court-monitored financial restructuring. In these cases, payment for each phase of work is supposed to be contingent on delivery reports and service orders. However, sources say these conditions were selectively bypassed to benefit a few “favored” contractors.

The Ministry of Finance has yet to release an official statement regarding the ongoing investigations. However, legal experts anticipate that the findings could lead to formal charges against public officials and reforms in the oversight of contract execution and financial compliance in public procurement.

As Morocco continues to push for better governance and anti-corruption enforcement in public finance, the outcome of these probes will be closely watched by the business community and civil society organizations advocating for transparency and accountability.