MEA Finance Scandal: 40 Agencies Bankrupt as CEO Flees, Franchisees Demand Justice

The flight abroad of the CEO of MEA Finance has put more than 60 affiliated agencies operating under the Canal M brand and duly approved by Bank Al-Maghrib (BAM) in difficulty. They "now find themselves in a situation of bankruptcy, against a backdrop of accusations of massive fraud, breach of trust and an official silence deemed incomprehensible," reports the daily Al Akhbar, adding that the parent company "has been withholding significant amounts from the transactions of its franchised agencies for more than a year." These agencies are no longer functioning normally.

This situation deprives hundreds of families of their income. Dozens of young entrepreneurs see the fruits of their efforts collapse like a house of cards. With no way out, more than 40 franchisees have seized the Casablanca Criminal Court. They have filed collective complaints for fraud, breach of trust, breach of contract and false declarations for the purpose of extortion. They have also organized sit-ins in front of the company’s headquarters in Casablanca as well as at the Parliament.

The direct losses are estimated at more than 30 million dirhams, in addition to collateral damage: total cessation of activity, social difficulties and psychological distress for the families concerned... So far, the franchisees have not prevailed. The government has not taken any major decision. Bank Al-Maghrib neither to unblock the situation. Faced with the impasse, the franchisees demand the opening of a comprehensive judicial investigation, the prosecution of those responsible, the compensation of the victims and a thorough reform of the regulatory framework governing the sector, in order to guarantee more transparency and legal security.