Cocaine Cash Fuels Casablanca Real Estate Boom: Authorities Probe Suspicious Developers

The recent purchase of "distressed" projects by these new developers has raised the suspicions of financial investigators who have scrutinized the tax situation of those based in Casablanca and Tanger, in collaboration with the General Directorate of Taxes (DGI). The investigations revealed suspicious financial flows in accounts common to the names of companies, during a period coinciding with the arrival of new shareholders. These amounts were used to repay debts, often subject to protective seizures by banks or suppliers, according to Hespress.

The financial investigators discovered that these new real estate developers are assisted by accounting firms that assess the real soundness of the projects before their acquisition. These distressed projects are located in strategic areas, which facilitates their resale and a quick return on investment. Furthermore, these acquisitions were made with equity, without bank financing, in a context of rising construction and labor costs. This has drawn the attention of the controllers.