Business
Environment
When Corporate Fraud Fuels the Informal Market in
Morocco: Some Tricks Used by Moroccan Businesses
Use
of false papers, fraudulent declarations, unrecorded transactions, and
illegal transfer of hard currencies to foreign bank accounts are few
of the techniques some senior managers in Moroccan companies have been
using to enrich themselves and defraud clients, suppliers and the government.
In 2003 tax authorities collected MAD 2.4 billion of unreported taxes
and contributions to the various funds such as the social security and
retirement fund, following investigations of many companies. This number
is apparently just the tip of the iceberg as audits and control of company
books are not comprehensive or systemic. The existing control process
is still largely symbolic and insufficient to deter offenders at a wider
scale. There are no statistics and official data on the scope of fraud
and corruption in the Moroccan corporate world, but it is well and alive
and their practice is widespread. The problem is so deeply rooted that
even world-renowned accounting firms refuse to testify or even provide
their opinions in anonymity, citing ethics and respect for their clients’
confidentiality. In the tax world, evasion is so serious that it is
believed that only some 20% of the companies follow the rules of clean
money as mandated by the law. Therefore the vast majority uses whatever
loopholes to avoid paying taxes and defraud so many others around them
as they can.
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Populations
Morocco and Tunisia’s Population Census Results
Tunisia
and Morocco conducted recently a comprehensive population census. The
previous ones were also conducted the same year, in 1994. Although not
all the figures and statistics are available, the preliminary data shows
a substantial reduction in population growth rates and a maturing population
structure.
This is particularily
the case of Tunisia, which population profile is increasingly lining
up with that of OECD countries and the Tunisians are enjoying one of
the best economies in Africa and in the Arab world.
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Industry
A Review of Algeria’s Enterprise Upgrade Program
The
corporate upgrade program in Algeria is underway but it is behind schedule
putting at risk many small and medium domestic businesses when confronting
trade tariff reductions or eliminations to benefit imports. The program
is meant to help domestic companies in the industrial sector upgrade
their management and operating practices to prepare them for the opening
of the economy. Since its inception in 2002 and as of October 2004,
the program handled only 293 applications. The bulk of the companies
applying for the upgrade process (64%) are state entities and the remaining
107 applications come from private companies. But of the 480 applicants,
only 191 have been approved to benefit from the program at the audit
phase.
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Investment
Treaties
France to Ratify Investment Protection Agreement with
Libya, Hopes to Raise its Market Share There
The French foreign minister has recently submitted to the council of
ministers a draft Franco-Libyan investment protection agreement. The
draft agreement aims at shielding French investments from future political
risks. The agreement would provide French corporations that wish to
invest in Libya a credit insurance policy from the Coface agency, in
addition to legal guarantees against arbitrary expropriation.
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Tobacco Industry