Morocco Enhances Oversight of Public Contracts, and Lajid Reveals Penalties for Violators
In a recent statement, the Minister Delegate for Budget, Fouad Lajid, emphasized that the fundamental principle for awarding public contracts lies in adhering to an open competitive process. This approach involves implementing mechanisms to ensure transparency and establishing equality in dealings with competitors, obliging project owners to widely publicize contracts in line with the spirit of the 2011 Constitution.
Lajid also highlighted that the national system for managing public contracts has been updated to align with relevant international standards and practices. Consequently, Moroccan companies will access public contracts under conditions similar to those applied internationally.
In response to a written question from Idriss SenTisi, head of the Movement Group in the House of Representatives, Lajid noted that to ensure compliance, measures outlined in the regulatory texts concerning public contracts are being implemented, covering inspection, oversight, and investigation within the public procurement domain.
Among these measures, the Minister pointed out the requirement for pre-approval of contracts before financial commitments, as well as performance monitoring according to current regulations. It is essential to communicate the financial commitment references related to the contract to the recipient before any execution.
Additionally, contracts exceeding three million MAD, including taxes, and negotiated contracts exceeding one million MAD, along with their appendices, will be subject to audits and reviews initiated by the relevant minister. This will help ensure the proper application of legislative and regulatory texts and the sound management of public funds.
He clarified that project owners must prepare a completion report within a maximum of three months after the final acceptance of the works for contracts exceeding one million MAD, and that each project must have a submission report prepared by the project owner.
Regarding measures taken in case of violations, Fouad Lajid confirmed that Article 79 of Decree No. 2.14.394 (May 13, 2016) concerning the approval of the general administrative conditions applicable to construction contracts states that contracts can be canceled in the event of violations.
According to Lajid’s response, which was noted by the newspaper "Madar21," this cancellation can either be unconditional or conditional, accompanied by the seizure of the final guarantee. The amount corresponding to correcting any observed deficiencies will be deducted from the guarantee amount and, if necessary, from the amounts due to the contractor without prejudice to any rights that may be pursued against them by any collection means.
It was also noted that, according to the same article, the cancellation may be followed by the award of a new contract to another contractor at the expense and risk of the initial contractor to complete the work, in accordance with the provisions of Article 86 of Decree 2.12.349 concerning public contracts. The contractor in violation may also be temporarily or permanently excluded from participating in public tenders based on the conditions stated in Article 159 of Decree 2.12.349.
Furthermore, it was clarified that direct execution at the expense and risk of the contractor will take place in such cases. The competent authority will temporarily replace the violating contractor with either the project owner or another contractor to supervise the completion of the works, using the physical and human resources of the violating contractor, at their cost and risk. The project owner will acquire the necessary supplies and materials for direct execution, charging them to the violating contractor.
