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Moroccan Companies Demand Government Intervention Over 150 Million Dirham Debt in Stalled Ritz-Carlton Projects
🇲🇦 Morocco /Economy & Trade

Moroccan Companies Demand Government Intervention Over 150 Million Dirham Debt in Stalled Ritz-Carlton Projects

From Hespress · () Arabic

Translated from Arabic, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A consortium of companies is demanding urgent government intervention to resolve financial disputes related to the Ritz-Carlton Rabat-Dar Salam and Ritz-Carlton Tamuda Bay projects.
  • The companies claim over 150 million dirhams in outstanding payments, despite having final court rulings in their favor, and accuse the state of arbitrarily reclaiming project properties.
  • They argue that the state's actions, including canceling legal seizures on properties without settling debts, violate contractual guarantees and threaten Morocco's investment climate.

A group of Moroccan companies, united under the banner of creditors, has publicly voiced their grievances, demanding immediate action from the head of government to address what they describe as a "complex investment file." The core of their complaint lies in the stalled Ritz-Carlton projects in Rabat and Tamuda Bay, where they claim to be owed over 150 million dirhams, despite possessing final court judgments validating their claims.

one of the most complex stalled investment files

— Representatives of the creditor companiesDescribing the situation surrounding the Ritz-Carlton projects during a press conference.

The companies assert that the state's decision to reclaim the project properties was an "unilateral and arbitrary" act. This move, they argue, effectively nullified the legal security interests they had placed on the properties, which were their primary means of recovering the owed funds. They contend that these seizures were legally registered before the properties were transferred to the state, establishing them as "acquired rights" that cannot be simply erased without a proper settlement of the debts.

unilateral and arbitrary administrative decision

— Representatives of the creditor companiesCharacterizing the state's decision to reclaim the project properties.

Adding to their frustration, the companies point to specific instances where, they allege, contractual guarantees were breached. In the case of the Tamuda Bay project, they claim the investment company had received official clearance in 2019 confirming full ownership of the property. However, they were later surprised by the state's decision to reclaim the asset and transfer it to state ownership without resorting to arbitration or judicial proceedings as stipulated in the investment agreement.

acquired rights that cannot be erased without actual settlement of debts

— Representatives of the creditor companiesExplaining the legal standing of their claims on the properties.

This situation is pushing these national contractors to the brink of bankruptcy, jeopardizing not only their businesses but also the broader Moroccan investment landscape. The companies emphasize that the Ritz-Carlton Rabat-Dar Salam project, for instance, was fully completed and ready for operation before the state's intervention. Their demand is for a fair resolution that respects legal rulings and contractual obligations, ensuring that Morocco remains an attractive destination for investors and a reliable partner for its businesses.

blatant violation of contractual guarantees

— Representatives of the creditor companiesDescribing the state's actions regarding the Tamuda Bay project.
DistantNews Editorial

Originally published by Hespress in Arabic. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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