Morocco’s Finance Inspectorate has launched a wide-ranging audit into public institutions and state-owned companies over alleged irregularities in the cancellation of public procurement contracts, according to sources familiar with the matter.
The move follows alerts from spending authorities pointing to a rise in project owners reversing decisions to terminate contracts under unclear justifications, Hespress has learned.
Officials said several public bodies withdrew termination decisions after assessing potential financial and legal losses linked to unilateral cancellations. In some cases, companies holding contracts had secured notarized reports from court bailiffs proving that works and equipment deliveries had been carried out in line with contractual specifications.
Inspectors have requested access to procurement files, delivery reports and related legal notifications covering the past three years from at least one public institution and two state-owned companies. The audit also extends to temporary and final handover reports, as well as records of contested termination decisions.
Preliminary findings show a backlog of suspended contracts, some due to unpaid invoices and failure to release retention guarantees. Inspectors also noted cases where administrations failed to comply with requirements to formally cancel or scale down emergency contracts, either by neglecting to prepare delivery reports or by not issuing supplementary agreements to adjust project volumes.
In their responses, project owners argued that cancellation decisions are primarily administrative in nature and can be withdrawn if no harm is caused to contracting companies. However, inspectors pressed them to clarify the grounds for reversing such decisions despite persisting contractual breaches.
The audit further highlighted failures by some entities to issue “service orders” or formal legal warnings to contractors that had defaulted, steps that would allow project owners to cancel contracts unconditionally and withhold financial guarantees.
The Finance Ministry has recently accelerated efforts to resolve a large number of pending public procurement files that could not be legally or financially settled, particularly those involving guarantee deductions imposed on contractors.
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