Tangier Court Orders Council to Pay 5.4 Million Dirhams in Road Work Dispute

A company in charge of road works won its lawsuit against the Prefectural Council of Tangier-Assilah. Last week, the administrative court of the city of Tangier ordered the council to pay it a financial indemnity due to the "failure" to fulfill its financial commitments within the framework of a public contract. In total, 5 million dirhams (4,976,190.16 dirhams) will have to be paid to the plaintiff company for the final accounts, in addition to an amount of 462,982.14 dirhams for late payment interest, with the defendant party (the Prefectural Council) being charged the court costs.

It all started with the Council’s refusal to honor its financial commitments. Indeed, the plaintiff company carried out the work entrusted to it in accordance with the minutes of final acceptance, and within the deadlines set by the specifications. But the Prefectural Council refused to pay the amounts due corresponding to the first account, in the amount of 4,171,635.53 dirhams, and the final account, amounting to 804,554.63 dirhams, according to the website Al3omk. The Prefectural Council also refused to return the amount of the final guarantee of 155,907 dirhams, as well as the guarantee withholding of 363,782 dirhams, despite the submission of the "release" document after the end of the contract, added the same source.

After sending several formal notices to the Prefectural Council of Tangier-Assilah on April 14, June 12 and October 27, 2023, as well as a final formal notice on February 16, 2024 without receiving any response, the company decided to bring the case before the administrative justice.