Morocco’s Supreme Council Exposes Financial Irregularities in Political Parties’ Audits

Tuesday 17 December 2024 - 09:50

By: Dakir Madiha

Morocco’s Supreme Council Exposes Financial Irregularities in Political Parties’ Audits

In its annual report for 2023-2024, released in November and submitted to King Mohammed VI, Morocco's Supreme Council of Accounts revealed significant discrepancies in the financial practices of many political parties. The 100-page report highlighted that, during the 2022 fiscal year, 29 political parties received a total of MAD 152.96 million in funds, including state subsidies. However, their reported expenditures totaled only MAD 130.65 million, leaving over MAD 22 million unaccounted for.

Further investigation uncovered irregularities in the financial records of five political parties, amounting to MAD 5.19 million. The report did not specify which parties were involved but detailed the nature of the discrepancies, including the receipt of MAD 3.08 million without the required documentation and an excess of MAD 2.11 million in individual transactions that exceeded the legal cash payment limit of MAD 10,000.

Additionally, the Supreme Council found that 26% of declared expenditures, amounting to MAD 34.35 million, lacked proper documentation or were insufficiently documented. This included MAD 17.25 million spent without any legal proof, MAD 1.46 million tied to insufficiently documented or misattributed expenses, and MAD 15.64 million spent from annual subsidies without supporting documents.

The report criticized the widespread failure to comply with Morocco’s General Accounting Standards Manual and the Unified Accounting Plan, emphasizing the lack of supporting documentation for annual financial statements, which made it difficult for certified accountants to verify the accuracy of party accounts.

In response to these findings, the Supreme Council proposed several measures to improve financial transparency within political parties. These included conducting training sessions for party staff to better understand and apply the Unified Accounting Plan, creating a standardized accounting procedures guide for all parties, and introducing a unified information system to ensure consistency and improve financial oversight.

The Supreme Council’s report stressed the urgent need for reforms to address these financial discrepancies, calling for greater transparency and improved governance in the financial management of Morocco’s political parties.