Moroccan Royal Guarantee Fails to Protect Foreign Investor in Fishing Venture Dispute

Hassan Ali Zarouq, a Portuguese businessman of Libyan origin, has launched a distress call in order to be able to have his rights restored, in a fishing project called "Omnium marocain de Pêche", launched in Tan Tan in 1981, in association with Mohamed El Iraqi.

According to Assabah, thanks to the contributions in equity, the Company’s share capital increased from 10,000 dirhams to 137 million dirhams. The investor had also granted several loans to his associate, Mohamed El Iraqi, with the agreement of the Foreign Exchange Office. These are amounts that will never be repaid later.

The project, which was inaugurated by King Hassan II, was a real success, thanks to the participation of the businessman and the millions of dollars he injected into it. He had received the Wissam of the Throne from King Hassan II for the performance of the Company, in the port of Tan Tan.

Despite a contract of agreement between the two parties, conflicts over the mismanagement of the company led the Moroccan partner to bring the case before the Tan Tan Court. The justice ruled in favor of the Moroccan associate. Thus, the latter was able to resume the management of the Company. The businessman decided to appeal to the Agadir Court of Appeal.

However, by royal decision, the appeal trial was suspended by King Hassan II; the Sovereign had offered a royal guarantee to the Portuguese investor, on condition that he renounce the management of the company. The newspaper adds that given the sensitivity of the case, the matter was removed from the judicial procedures.

For 40 years, not only has the Portuguese businessman failed to have his investments and his stake in the company’s share capital, as well as the loans granted to his associate, restored, but he has even been evicted from the villa provided to him by the company.