SRM East deals in Nador exclude local businesses and violate public procurement law

Economy of the East

In a remarkable move, the Moroccan League for the Defense of Human Rights (LMDH) issued a statement denouncing the exclusion of local companies from the SRM deals in the Nador region, in apparent contradiction to explicit legal requirements that obligate the active involvement of the local economic fabric in public orders.

Deal data and numbers

The statement documented that COMPANY GENERALE DE TRAVAUX ET SERVICE two major deals involving the Nador region, including meter reading, bill distribution and electricity disconnection services, which are vital services of a direct daily nature with citizens:

• The deal is 10002394 (lot 1): in the amount of 5,892,110.57
• The deal is 10002536 (lot 2): in the amount of 1,415,760.00

The League noted that local contractors were performing these services efficiently and at a lower cost, raising serious questions about the criteria used in evaluating bids and awarding contracts.

A clear violation of the legal framework

The statement is based on the Public Procurement Decree No. 2-22-431, in particular Article 148 that requires 30% of the estimated value of deals to be allocated to small and medium enterprises (SMEs) and self-employed contractors, as well as Article 149 which mandates the prioritization of local labor. The statement argues that the two deals in question circumvent these legal requirements explicitly.

Social and economic repercussions

The statement warns that the continuation of this approach will lead to the displacement of workers from the region who have worked in these services for years, exacerbate local unemployment, and push regional businesses towards bankruptcy due to outstanding financial dues owed by the regional company.

League demands

At the end of its statement, the League called for the suspension of the implementation of the results of the two deals and the opening of an independent investigation into the selection criteria used, as well as the activation of Article 24 of the delegated management contract to protect the rights of former employees. It also called on the Supreme Audit Council to scrutinize how these deals were managed, and on regional and provincial authorities to intervene urgently to provide redress to those affected, while enforcing accountability against those responsible for drafting the ”tailor-made” bills of accountability.