First world congress of Imams and Rabbis for Peace to be held in Morocco
HIV/AIDS in Morocco
Shortage of Medical Specialists in Morocco Morocco increases water reserves.
Small and Medium-Sized (SMB) Assistance Funds Insufficiently Used.
Textiles and FTAs Morocco
FAO: Desert locust situation extremely serious in North Africa.
New Incentives to Boost Residential Internet in Morocco
Morocco devotes $34 mln to scientific research in 2002-03
Potatoes sale to Morocco.
HM King Mohammed VI Voices Resolve for Rehabilitation of Quake-hit Al Hoceima,
Morocco to grant special aid to quake-hit region.
HM the King Launches Vaccination campaign in quake-stricken Al Hoceima region.
Moroccan king resolved to end irresponsible behavior of public authorities over anti-seismic building standards.
French Experts Assess Damages in Quake-hit Al Hoceima Region
Moroccan Wheat Import Sector in Turmoil.
Mecca-Cola Breaks Relations with its Moroccan Affiliate.
Risma Raises Funds for the Construction of the Casa City Center
First international festival of magic arts opens in Marrakech.
Maroc Telecom reports 8.5 percent profit increase for 2003.
GPRS improved in Morocco.
Poll Results Show Troubling Sentiments on Immigration Among Moroccans
Large Resources for the 2004 Morocco Census

First world congress of Imams and rabbis for Peace to be held in Morocco
Religion, 3/25/2004

The first world congress of "Imams and rabbis for Peace" will be held from May 31 to June 3 in the mountain resort of Ifrane (south of Rabat), it was announced in Brussels Wednesday.  This congress will be organized mainly by the Swiss-based Foundation "Hommes de parole" with the help of the Rabat-based Islamic educational and Scientific organization (ISESCO) and other organizations.

Alain Michel, founder of "Hommes de parole" said the choice of Morocco is explained by the fact that "the Kingdom is the only Arab and Moslem country where Islam is the state's religion and which guarantees constitutionally the free exercise of all religions.." Other speakers hailed the role played by the late King Mohammed V, grandfather of King Mohammed VI in the protection of the Jewish community which has always lived in harmony in Morocco. They also condemned all forms of violence and terrorism insisting that the conflict between Israel and the Palestinians is not of a religious nature for, they said, religion is source of unity. The idea of bringing together Imams (Moslem preachers) and Rabbis goes back to June 2003 in Caux (Switzerland) at the end of an informal meeting that reunited some forty Israeli and Palestinian religious figures.
http://www.arabicnews.com/ansub/Daily/Day/040325/2004032521.html
----------------------------------------------------------------------------

HIV/AIDS in Morocco

The number of individuals with AIDS/HIV in Morocco is estimated to be between 13,000 and 16,000, as reported by the healthcare community to government authorities. Morocco has 24 centers monitoring and testing centers across the country.
http://www.north-africa.com/all/industry.htm
----------------------------------------------------------------------------

Shortage of Medical Specialists in Morocco

Morocco is to establish two medical schools in Fes and Marrakech to deal with the shortage of medical specialists. There is a deficit of some 850 medical specialists in Morocco according to health minister Mohamed Cheikh Biadillah, who announced the establishment of the two med schools to be affiliated to the local hospital systems. Morocco has 3,737 specialists, of whom 2,530 practice in hospitals and the remaining ones working in urban health centers. The number of new specialists entering the health sector each year averaged 150, with the exception of 2003, with that number likely to double.
http://www.north-africa.com/all/industry.htm
----------------------------------------------------------------------------

Morocco increases water reserves.
Mar 24, 2004 (Al-Bawaba via COMTEX)

Morocco's dam reservoirs reached 69 percent capacity as of March 18, 2004, holding a total 10.2 billion cubic meters of water, up seven percent compared to the same month last year, reported MAP. According to the secretariat of state in charge of water, the rise in reserves is due to the high level of rainfall recorded between September 1, 2003 and March 18, 2004. In 2001, Morocco embarked on an initiative to construct nine new major dams and eight mid-size dams by 2004, in an effort to alleviate water shortages in the country. The agricultural sector in Morocco consumes about 80 percent of the available water in the Kingdom, estimated at 14 billion cubic meters.- (menareport.com) By Mena Report Reporters (C) 2004 Albawaba.com,All rights reserved
http://www.zawya.com/Story.cfm?id=084w2225&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C
----------------------------------------------------------------------------

Small and Medium-Sized (SMB) Assistance Funds Insufficiently Used.

Morocco's small and medium-sized businesses (SMBs) apparently have a plethora of funding sources to finance their modernization and upgrades, but not enough SMBs tap into those funds because not too many companies are even aware of their existence. Indeed there are various funds, including Fortex, Renovotel, Foman, Man, the certification fund and many others. With DH 100 million, Fortex provides financing to companies operating in the textiles and garment industries. The money is used to support company-structuring efforts in preparation for the launch of the Morocco-EU free trade zone. Renovotel, for its part, targets existing hotel infrastructures through a state-bank co financing program valued at DH 200 million. The third biggest fund is called Foman. It is used to support companies through local consulting and helps co-finance investment on equipment in partnership with private and public banks.  Man is another fund that SMBs can use to improve their industrial competitiveness in face of rising competition from foreign companies.
http://www.north-africa.com/all/industry.htm
----------------------------------------------------------------------------

Textiles and FTAs Morocco
March-4 Volume 30. 23.03.2004

As far as the figures are concerned, March is proving a time of mixed results for Morocco. While the country was concluding a much-awaited free trade agreement with the US - much to the joy of its advocates - elsewhere, in the textiles sector, things were not looking quite so rosy.  First, though, came some statistics for industrial growth that showed third-quarter 2003 expansion of 2.7%. According to agency MAP, which released what it said was data from a government think-tank, the leading segment in this was agribusiness, which managed 5.6% growth, while metallurgy, electricity, electronics and mineral processing also ranked in the top areas for expansion.

With industry accounting for some 20% of Morocco's GDP, the sectors' performance is naturally keenly watched. However, analysts were divided over whether the result was a good one. After all, 4.6% growth in the sector is expected for the first quarter of 2004, with this a substantial distance above the third-quarter results. Also causing some concern were the figures from the textile sector released by the think-tank on March 12. These showed that receipts from textiles and leather had fallen 2.2% during the third quarter of 2003.

The decline was put down largely to a decrease in local, household demand. The report remained confident though that exports were growing and that the overseas market might take up the slack in 2004, with hosiery, apparel and leather items expected to keep sales expanding during the first quarter of this year at the same rate as in preceding years. While such optimism may find its critics, it is not altogether without some foundation. Certainly, there was also good news in the sector this month, with the announcement on March 15 that the Italian group Ledger is to set up a major new textile plant in the country.

The deal was given high profile by the government, with Prime Minister Driss Jettou attending the signing ceremony for the investment agreement in Rabat. Ledger is a leading manufacturer in the Italian textile market, particularly in the denim, fabric and velvet markets, owning five plants in Northern Italy and Sardinia, a joint-venture in Pakistan and having a workforce of some 1,900 people. The company's plan is to set up an integrated industrial compound of two plants for weaving and spinning at Skhirat, 20 km south of Rabat. These will have a productive capacity of 24m metres of fabric per year, as well as a spinning unit with the capacity to produce 9,000 tonnes of material per year. The estimated cost of the project is Dh600m (around $66.5m) and will be carried out in partnership with the Moroccan Senoussi group. Some 800 jobs will also be created directly, with many more expected to benefit in spin offs.

At the ceremony, Jettou described textiles as an "extremely important" sector, and underlined the government's determination to help it with various incentives. These, the prime minister elaborated, include cutting costs, improving professional training and modernising labour legislation. He also said that the sector would be one of the main benefactors from the recently concluded Morocco-US Free Trade Agreement (FTA). In this opinion, he was then joined by Edoardo Polli, Ledger's owner, who said his company had chosen Morocco not only because of its stability and proximity to Europe, but also because of its "openness to the USA" - in other words, the FTA.

Finally signed on March 2 after negotiations that stretched back seven rounds to a start date at the end of 2001, the FTA has been hailed by Moroccan and US officials in recent days as a monumental achievement. Speaking after the signing, the US National Free Trade Council (NFTC) chairman, Bill Reinsch, described it as an "historic accord", while Aziz Mekouar, Morocco's ambassador in Washington, added that as far as Morocco was concerned, the FTA gave "immediate access to the American market for 99% of [Morocco's] industrial products".

US leader George W. Bush emphasised the political dimensions too when he spoke after the signing of Morocco being one of the US' "strongest friends in the Middle East". As this is an era of US initiatives, Bush also claimed that the accord advances "my goal of a Middle East Free Trade Area (MEFTA) within a decade".

Yet the jury remains out on whether the US FTA really will produce the results its advocates suggest. The doubts have been growing recently too as the kingdom draws closer to the European Union, with some fearing that free trade with both giant blocs may result in a dangerous squeeze on Morocco's own products. Another, wider concern is that signing up to both agreements may create a regulatory noodle soup, with conflicts emerging between the EU and US "operating systems".  Certainly though, if Ledger is anything to go by, European companies with plans to export to the US are already rolling up. How this will now play out remains the big question though, as Moroccans prepare for a major new challenge.
http://www.oxfordbusinessgroup.com/weekly01.asp?id=812
---------------------------------------------------------------------------

FAO: Desert locust situation extremely serious in North Africa.
March 24, 2004

Despite control operations, the desert locust situation continues to be extremely serious in northwest Africa, according to the latest update by the United Nations (UN) Food and Agriculture Organization (FAO). In Morocco, intensive aerial and ground control operations, treating up to 20 000 hectares per day, are in progress against swarms that are laying eggs in the spring breeding areas in the Draa Valley on the southern side of the Atlas Mountains. It is likely that similar infestations extend into western Algeria, near the Moroccan border. "There are signs that the situation is moving towards the early stages of an upsurge. International donor assistance is urgently required to prevent a plague from developing," warns FAO's Locust Group.

In the next few weeks, more swarms are expected to arrive in Morocco and Algeria from northern Mauritania and the Western Sahara. In Mauritania, widespread hatching and band formation continue in the north near the borders of Morocco and the Western Sahara. Adults are forming swarms in parts of the north and northwest where vegetation is drying out, and some of these swarms have been seen moving northwards.

Control operations are in progress in the affected countries, but national resources are rapidly being drained. During the first half of March, more than 250,000 hectares were treated in Morocco, compared to about 2,000 hectares in Mauritania, where a severe shortage of funds for pesticide and operations continues to limit the ability to reduce the number of swarms that will eventually move towards the spring breeding areas.

Across the continent, desert locust populations unexpectedly shifted from the Red Sea coastal plains to the interior of northern Sudan and southern Egypt during the first week of March, according to the latest FAO report. In Saudi Arabia, locust numbers have reportedly declined along the Red Sea coastal plains as swarms moved across the Red Sea to northeast Africa.

In Sudan, a few small mature swarms appeared near Dongola and were reported to be copulating. In Egypt, larger swarms were seen near Lake Nasser and locust adults appeared in the oases in the New Valley while, on the Red Sea coast, control operations continued on both sides of the Egyptian-Sudanese border.

FAO reiterated that if survey and control operations have to slow down or be interrupted during this spring in northwest Africa, more swarms will form and move to the Sahel in West Africa at the beginning of the summer growing season. "If operations are not effective during the summer, this could not only have a dramatic impact on food security within the region but the current situation could develop into a plague by the end of the year," FAO warns. - (menareport.com)
http://www.albawaba.com/headlines/TheNews.php3?action=story&sid=273338&lang=e&dir=
----------------------------------------------------------------------------

New Incentives to Boost Residential Internet in Morocco

The year 2004 could be a banner year for the Internet in Morocco. The ministry of industry, commerce and telecommunications, which is the department in charge of the sector, selected 2004 to launch a nationwide marketing campaign aimed at boosting the use of Internet technologies. Although the details remain sketchy, Moroccan consumers and business will enjoy lower Internet access prices right from the beginning of the new year. Indeed, the telecom regulatory agency ANRT already authorized telecom firm Maroc Telecom to lower its tariffs and eliminate subscription fees effective January 1st. The new connection fee is now set to DH 12 per or about US$1.2.

According to telecom minister Rachid Talbi Alami, this program is part of the government's strategic objective to liberalize the sector, in an effort spearheaded by the ministry. The minister argued that Morocco could be a major center for the Internet in Africa because it has "bandwidth capacity of 500 megabits per second."
For this upcoming marketing effort, the primary targets are the country's households. Residential customers with Internet accounts represent less than 5% of the one million Internet subscribers in Morocco. This represents an insignificant market today because Internet access remains prohibited by high prices and lack of higher PC penetration. This rather sluggish market is what prompted ANRT and Maroc Telecom to scrap the subscription fee and announce a 40% reduction of the hourly access, now reduced to DH 12, all taxes included. This would bring the minute rate to DH 0.166 before tax. The tax taken by the government accounts for 17% of the DH 12.

In addition, Maroc Telecom is revising its relationships with the 130 Internet service providers (ISPs) licensed to operate across the country.
Maroc Telecom will pay back ISPs 28% of the revenue they generate on behalf of Maroc Telecom. ISPs will also benefit from deeper discounts for packages they sell that include flat rates and unlimited evening and weekend usage. The price points for these specific packages will be reduced by 41%. For the period that are part of a monthly fee, unused minutes could now be transferred to the following month.

Morocco is also launching a set of incentives to boost high-speed Internet usage, which has first been introduced in Morocco in mid-2003. The price for the use of the 128 kilobits/second DSL connection will be reduce by 25% from DH 479 to DH 360, and a further reduction in summer 2004 to DH 300 will follow.  Similarly, ISPs will also receive price-based incentives with the cost of the 34 megabits/second IP transit reduced to DH 330,000 per month, down from DH 450,000. The all-inclusive package, which includes a desktop computer and Internet access currently priced at DH 3,750 will be lowered to DH 2,500 at the end of 2004.

With these efforts, the government is hoping to double or even triple the number of residential subscribers. Some, at the telecom ministriesare even more bullish, talking about a target of three million subscribers by the end of 2004, a target that will be difficult to achieve without some wage increase. And while consumers are likely to be the winners in 2004, the prolific cybercafes are expected to loose ground. There are an estimated 2,500 cybercafes in Morocco, a number likely to decrease in the foreseeable future, as residential Internet access is more generalized and more affordable. This is despite the fact the hourly access in cybercafes is DH 10, or DH 2 below the new residential prices.
http://www.north-africa.com/all/industry.htm
--------------------------------------------------------------------------

Morocco devotes $34 mln to scientific research in 2002-03
Science, 3/23/2004

The budget destined to scientific research for 2002-2003 exceeded 300 million DH (US $34 million dollars), said Moroccan delegate minister in charge of scientific research. In an interview broadcast Saturday by the national radio, Omar Fassi Fihri added that the progress achieved in scientific research is owed to the paramount importance given by different economic and political actors in the country to winning the challenge of globalization and competitiveness. The minister recalled the project launched in 1999, under which enterprises devote 20% of their duty-free profits to scientific research. He recalled in this vein the progress made in locating seismic zones through high-tech digital equipments and satellite observations.
http://www.arabicnews.com/ansub/Daily/Day/040323/2004032323.html
--------------------------------------------------------------------------

Potatoes sale to Morocco.
By Michael Drake, Agriculture Editor. 22 March 2004 mdrake@belfasttelegraph.co.uk

POTATO growers have set their sights on selling more produce to North Africa. An 11-strong team from the Northern Ireland Seed Potato Export Group is back from a successful visit to Morocco, the principal export market for locally produced seed potatoes. Over 150 representatives of the Moroccan seed potato industry, including growers, importers and Ministry of Agriculture officials visited two field demon- strations. Department of Agriculture specialist Jim Crummie said: "This co-ordinated programme of development work undertaken by the Northern Ireland seed potato supply chain aims to improve the quality of seed potatoes shipped to Morocco and to identify new varieties which will meet your future market needs."
http://www.belfasttelegraph.co.uk/news/story.jsp?story=503825
---------------------------------------------------------------------------

HM King Mohammed VI Voices Resolve for Rehabilitation of Quake-hit Al Hoceima, Development of Rif Region.
AL HOCEIMA, Mar. 25

HM King Mohammed VI voiced here Thursday resolve to make the Rif region a "hub of urban and rural development in Northern Morocco" and to fully integrate it in the national economy. "I have asked the government to undertake immediately the preparation of an integrated structural development plan for the rehabilitation of Al Hoceima and the development of the Rif region, for the medium as well as the long term," HM the king underlined in a speech delivered in Al Hoceima that was hit last month by a quake that claimed the lives of 629 people and left hundreds of homeless.

This plan, HM the king explained, aims to "provide the region with the basic infrastructure it needs, such as electricity and water supply networks as well as roads." He added that a motorway between Fez and Al Hoceima will be built to "open up the landlocked region and incorporate it into the national road network" and that the construction of the Mediterranean ring road will be speeded up for the same purpose. The monarch instructed the government to work out an emergency program that includes "comprehensive field studies, an updated geophysical survey and the identification of suitable sites for housing projects, in the light of earthquake-resistance standards and regulations." He also ordered the setting up of a town-planning agency for Al Hoceima and another one for Nador, highlighting the need to accelerate the reconstruction and restoration of basic public facilities like schools and hospitals. HM the king added that "special attention should be given to encouraging investment, promoting labour-intensive development projects, particularly in the areas of tourism and the fisheries, in addition to developing a modern, productive agricultural economy." © MAP 2004 http://www.map.co.ma/mapeng/eng.htm
----------------------------------------------------------------------------

Morocco to grant special aid to quake-hit region.
By Gilles Trequesser 26 Mar 2004 RABAT (AlertNet)

Morocco's King Mohammed has pledged quick aid to help restore vital infrastructure to a remote region of the country that was badly affected by last month's deadly earthquake.  The earthquake in the Rif region of northern Morocco, under-developed for decades, killed 629 people and was the worst to hit the country in 40 years. "The aim is to give the region necessary basic infrastructure, in terms of water, electricity and roads that can open it up (to the rest of the country)," the king said in a speech in the Mediterranean port city of Al Hoceima.

Mountain villages near Al Hoceima bore the brunt of the disaster, with mud-brick homes collapsing and narrow mountain roads hampering relief operations. The king, who spent days in the area after the February 24 quake, did not say how much the development plan would cost.  The measures, which include the construction of earthquake-proof homes, were likely to be welcomed by a population that has resorted to cannabis production, contraband and remittances from overseas workers to raise standards of living.  The Rif region has a history of troubled relations with central authorities in Rabat. The king's late father, as crown prince, crushed a post-independence rebellion in the mainly Berber-speaking region in 1958-59, leaving deep scars.
http://www.alertnet.org/thenews/newsdesk/108029974242.htm
----------------------------------------------------------------------------

HM the King Launches Vaccination campaign in quake-stricken Al Hoceima region.
Al Hoceima (North east morocco), Mar. 24

HM the King Mohammed VI of Morocco on Wednesday launched a vaccination campaign at Ait Kamra, one of the most affected villages by last month's earthquake that struck the Al Hoceima region. The vaccination campaign will concern 10,000 women and 2000 children under one year. The monarch also handed 17 vehicles to local associations. HM the king visited earlier a refurbished hospital in the quake-stricken town of Imzouren. The earthquake that struck this northeastern region on February 24, claimed 629 lives, injured over 900 and left thousands homeless. MAP 2004
http://www.map.co.ma/mapeng/eng.htm
---------------------------------------------------------------

Moroccan king resolved to end irresponsible behavior of public authorities over anti-seismic building standards.
Local, 3/26/2004

Morocco's King Mohammed VI said here Thursday he is resolved to put an end to the "irresponsible behavior, and to the laxity or dereliction of duty on the part of public authorities and elected officials" concerning anti-seismic regulations. "They are urged to fully shoulder their responsibilities with respect to strict enforcement of anti-seismic regulations and to put a stop to all illegal practices, for which the entire country pays a particularly heavy price, whenever a natural disaster strikes," the Moroccan monarch said in a speech addressed in quake-stricken Al Hoceima. The earthquake killed some 629 people and left hundreds of homeless after the collapse of over two thousand houses. The king deplored that "such abuses encourage the spread of debasing housing conditions which, in turn, constitute fertile ground for all sorts of social ills."

He added that he instructed the government and parliament to pass during the next spring session of the House, legislation criminalizing practices which encourage unauthorized housing or violate earthquake-resistant construction regulations." He hailed, however, the national solidarity and the efforts made by civil and military state agencies, the civil society, NGOs and Moroccans "at home and abroad who volunteered to help, despite challenging geographic and weather conditions. The king also expressed gratitude "to friendly nations and institutions for their support in these testing times."
http://www.arabicnews.com/ansub/Daily/Day/040326/2004032618.html
--------------------------------------------------------------------------

French Experts Assess Damages in Quake-hit Al Hoceima Region
AL HOCEIMA, Mar.22

French experts visited Sunday the quake-stricken Al Hoceima region to assess damages resulting from the earthquake that killed last month 629 people and left hundreds of others injured. The French delegation, comprising experts in construction and architecture, made field visits to schools, hospitals and other public and private buildings in the northeastern Mediterranean city of Al Hoceima and neighboring areas. Construction expert, Jean Maxladougne, told MAP the delegation's visit will assess France's assistance in expertise and funding. A French delegation had already paid a visit to the region with a view to draw up a seismic map that will enable to locate safe areas for new constructions following the quake that left some 15,230 people homeless. MAP 2004
http://www.map.co.ma/mapeng/eng.htm
---------------------------------------------------------------------------

Moroccan Wheat Import Sector in Turmoil.

The wheat processing sector in Morocco is going through a tough time with financial scandals and legal actions hurting the credibility of many of the key players. After the highly publicized scandals that rocked various public sector institutions in Morocco, including well-known organizations like the CNCA, the housing bank CIH, the social administration CNSS and the BCP bank, a new scandal is now dominating the wheat sector, a sector whose main players have always been suspected of wrongdoing. In 1997 the Moroccan government investigated and sued key players in the mill business, on the base that they have embezzled hundreds of millions of dirhams of subsidy money for their own benefit. But the industry did not only defraud the government and the Moroccan taxpayers but also its suppliers. Indeed more recently, a Swiss trading firm called Tradicran, came forward and filed a civil and criminal complaint against Cerelex, a company whose shareholders represent some of Morocco's largest cereal mill companies and owners, alleging that was defrauded of millions of dollars. Cerelex director also happen to be the memners of the Moroccan miller association, which has been under investigation from the Moroccan government for its illegal activities.

In their brief, Tradicran lawyers listed a series of complaints including fraud, embezzlement and non-payment of debts valued at tens of millions dollars. This affair is yet another indication that the wheat trading sector in Morocco is dominated by illegal operations and unethical practices. Based on the documents filed by Tradicran lawyers at the Brigade Economique et Financiere, or the special police brigade of Casa-Anfa, which focuses on financial crimes, the affair concerns the use of falsafied documents and the defrauding of millions of dollars.  The affair began in 1997 when a group of mill operators were organized into a single corporate entity under the leadership of Ghali Sebti to establish the Cerelex company. Sebti was then the most powerful cereal broker in the country in that he also ran the miller association, in a country where wheat is a dominant part of the households daily meals. Cerelex core business has been the importation of wheat to benefit the members of the corporation. The city of Casablanca was chosen to host the headquarters of the company, partly because of the quality of its seaport.

With Cerelex, the Casablanca port soon became a magnet to crago ships, turning the trade of wheat and other cereals as a very profitable business for those involved. Almost everyone fared well. The Moroccan importers turned to loans to finance their purchases, promising to pay their debts, and the Swiss suppliers trusted the system abd believed they would get paid because the 16 members of Cerelex were at that point well-known within Morocco as trustworthy and worth doing business with. Furthermore, one of the key partners in the corporation was Ghali Sebti, the former head of the powerful association of mill companies. Sebti's presence created a great deal of trust among suppliers given his influence, but instead they fell into a trap that cost them large sums of money. Indeed Sebti exhorted a lot power in the Moroccan cereal market in that he controlled all aspects of the cereal channel both upstream and downstream. A partnership agreement was signed between the two parties, with the primary element of the contract would be that the Moroccan corporation will buy exclusively from the Swiss trading firm. In exchange, the Moroccan mill owners will get a commission once the merchandise is delivered and enough time to pay their invoice.

The partnership between the two lasted four years, ending in 2000. During that period the Swiss firm shipped thousands of tons of wheat and now alleges that it has not been paid. The question many have is why did Tradicran wait so long to react? Meanwhile, the Moroccan association of mill firms became the target of an investigation. A financial and accounting audit of the organization was ordered by the then agriculture minister, Hassan Abouyoub, which uncovered suspicious activities, including signs of embezzlement The affair was quickly transferred to the ministry of justice under the leadership of Omar Aziman, which followed up with an extended inquiry into the ways the association functioned. Further details of the inner workings of the association led to the discovery of massive fraud and many key members were sentenced to jail time of between three months and six years. The lead defendant received 15 years.

When the scandal related to the wheat association became national news, the main figure, Ghali Sebti, was nowhere to be found and appeared to have escaped, leaving behind him stacks of unpaid bills owed to a number of suppliers and service providers. That was in December of 2001, a date that marked the beginning of the trial of the millers association before a special court of justice. With the beginning of the trial of the wheat importers association, the members of the Cerelex board began to panic and decided to dissolve their company even as the key figure, Ghali Sebti, was missing. In suspension of payment, the remaining board members of Cerelex halted their company's activities and ordered a mass layoff.

Meanwhile, Tradicran began to reach out to some of the leadership of Cerelex in an effort to recover its money, when it attempted to contact Hamdi Mustafa, the company's president and Kamal Ait Bouabid, its managing director. But the efforts failed leading to a worsening of the case and the inability of the two parties to solve their differences. This is because Cerelex management was also the target of a government probe in relations to the miller association. Without a counterpart at Cerelex, Tradicran quickly filed a complaint before the Casablanca commercial court, which ordered legal proceedings. Other tribunals in Morocco were also involved, including that of Casa-Anfa, which decided to involve the special economic police to investigate the case. As of today, the brigade continues its investigation, and interviewed a number of Cerelex directors.

According to well-informed sources, the complaint centers around alleged fraudulent bankruptcy, also allegedly provoked by Cerelex officials. These officials are also said to be the primary holders of the debts contracted with Tradicran. According to the civil and criminal complaints filed in Moroccan courts, all of the main directors of Cerelex made purchases under their own names on behalf of Cerelex, which has been in suspension of payment since 2000. The quantities of wheat purchased by the directors were large and were marketed and distributed using their own names. Because of their involvement and scheme, the Moroccan wheat market was at a certain point flooded with unpaid Swiss wheat, which apparently benefited only a handful of individuals.

It is a highly opaque and non-transparent industry that led to this large scale fraud. The sector of wheat import and distribution has been monopolistic, to say the least given the fact that Sebti and his partners loacked it. The debts related to this affair are said to have reached DH 109 million or some $10 million. According to sources, the directors of Cerelex have even used their company's capital for their own use, with a total amount estimated at DH 40 million. This has led to the bankruptcy of their firm. The directors of Cerelex are now accused of embezzlement of funds, which were transferred to foreign offshore bank accounts. Tradicran estimates that some $2.4 million were moved to foreign banks. Sources also name a company called Realtor Associates Limited, a Bahamas-based firm and eight other companies as having received money via another offshore company called Nuffton Properties Limited, headquartered in Tortola, British Virginia Island.
The complaint filed in court also included the disappearance of another $2.4 million though 12 wheat purchase contracts. There are also a variety of other contracts that made the value of the overall scheme in the tens of millions of dollars. The victims in the scheme were primarily Tradicran and a number of Moroccan banks.

But the troubles facing the millers and Cerelex do not originate only from Tradicran, as now the Moroccan customs service also joined the offensive against the millers. The customs service primary issue is the failure of the defendants to repatriate their hard currencies back to Morocco, as the law requires it. The ability of the defendants to move larges sums of dollars abroad almost without official monitoring is sign of a fast liberalization process that has failed to put in place all of the safeguards necessary to avoid similar situations. The liberalization of the sector brought important changes in the distribution and import of cereal products in Morocco. As part of the liberalization of the sector, free competition replaced the more controlled process whereby the official cereal authority ONICL chose intermediaries through the required call for competition for the purpose of importing cereal products during times of shortage or low inventory. But the new system was ill prepared to deal with all aspects of trading and loopholes were discovered in that not only benefited a few but also put tens of thousands of Moroccan farmers out of business as foreign cereal flooded the market. Domestic production of cereal suffered the most, as a result, particularly when the prices of cereal abroad began to decrease. This trend has harmed the entire chain of the cereal sector, from farmers and producers to their cooperatives and merchants. With growing volumes of foreign cereal entering Morocco, tens of thousands of tons of Moroccan cereal perished because they could not find buyers. The primary beneficiaries of this phenomenon now appear to be a handful of millers, many of whom are currently waiting for potential long-term jail sentences. These men sought to control an entire industry, from the importation, production, processing, sales and even re-exportation. And it is only today that the full extent and scale of their illegal schemes are becoming evident.

It is only recently that Ghali Sebti surrendered voluntarily to authorities when he returned from a trip aboard. Before his arrest, he was sentenced 15 years in prison in absentia for his role in the association but was released on bail. The Tradicran affair adds more difficulties to the already troubled Sebti. Before Tradicran, the ministries of agriculture and justice have already lodged a series of damaging complaints against him and his associates as early as 1997. The government found that Sabti and associates embezzled funds that were normally to be used in the context of state subsidy to the industry and to consumers alike, as well as part of the annual compensation the state pays to millers to allow them to remain afloat and compete. Some millers who have learned of the activities of the association say the money was channeled to other business activities that were not subsidized by the government and to benefit the businesses owned by those currently in jail, such as funding business activities that generate higher added value. It is now increasingly evident that a great amount of the money earmarked by the government to subsidize millers has gone to private hands rather than to benefit the industry as a whole and consumers as well. May be this scandal will push the government establish more efficient law enforcement mechanisms.
http://www.north-africa.com/all/industry.htm
---------------------------------------------------------------------------

Mecca-Cola Breaks Relations with its Moroccan Affiliate.

Paris-based soft drink company Mecca-Cola, which hopped to establish itself in Morocco, withdrew its support to its Moroccan affiliate. The company's CEO Tawfik Mathlouti announced Mecca-Cola business partner in Morocco will no longer market, distribute, and produce the drink, citing "hazardous management and opacity of the affiliate accounting practices." Mecca-Cola Morocco opened its doors on April 8, 2003. The move was made possible thanks to the help of Omar El-Alami, a local businessman who manages the family-owned business Mifa. A Moroccan subsidiary was created with an initial investment of Dh 10 million, with the goal of making the new unit the launching pad for an African expansion.  In early April 2003, the executives at the Moroccan unit projected 2003 revenue of Dh 120 to 150 million. But instead Mathlouti revealed that the company would announce losses of up to DH 10 million, including a credit of 350,000 euros loaned by the parent company, allegations that have been refuted by the Moroccan partner.

A legal action is likely to be taken by Mecca-Cola against its Moroccan business partners, who are accused of embezzlement and mismanagement. The 350,000-euro loan granted early on represented 110,000 euros in cash and the remaining in form of merchandise with some 40 containers carrying the beverage. Mecca-Cola alleges that it has not been paid by its Moroccan affiliate.

To recall, Mecca-Cola is a brand registered in France. It was created by Mathlouti, a French national of Tunisian origin. Makhlouti's product was first launched in November 2002 in France and in some other European markets. The launch was an overnight success and attracted a great deal of media attention, including coverage from French newspaper Le Monde and American cable news network CNN.

Driven by his religious fervor and his anti-western and anti-Israeli convictions, the trained lawyer Mathlouti first attempted to do business with the Iranian Zam-Zam Cola, seeking to open a franchise in France. In an interview given to Le Monde newspaper on February 4, 2003, Mathlouti says "all I wanted was to be the representative of that brand and make it more popular." But Mathlouti never heard from the owners of Zam-Zam, in spite of various attempts to reach them. Convinced that his Zam-Zam efforts were not productive, he decided to go it alone. He established a soda's chemical composition, set up a website and protected the brand name. With his own funds of about $22,000, he set up the Mecca-Cola Beverages Company. In spite of difficulties to find producing partners, his brand eventually took off with three million bottles of one-and-a-half liter sold in a few month period and with projections of up to 300 million bottles by December 2003. The success of Mecca-Cola in Europe astonished analysts and observers. None of them expected the brand to reach such success in less than a year activity. From Europe, Mecca-Cola decided to expand to markets where it expected to find a more open and more politically attentive consumer base.
http://www.north-africa.com/all/industry.htm
-----------------------------------------------------------------------

Risma Raises Funds for the Construction of the Casa City Center

The Moroccan hotel and real estate group Risma raised DH 201.5 million during the last week of this year to fund its growth. The money raised will be reimbursed with shares and not with cash. The effort focused on institutional investors and was not open to individuals. The bulk of the money came from insurance companies, which provided half of the money. The Risma bond was priced at a fixed DH 135 and the company pledged it intends to list in the stock market in 2006. The French hotel firm Accor, which is Risma's largest shareholder with a 45% stake, contributed with DH 40 million, followed by Investment funds OPCVM with DH 34.8 million, and banks with DH 26 million.

The money raised will be used to finance the company's growth in the next two years. The company said it needs DH 510 million to successful implement its growth plan, including the completion of the construction of the Casa City Center, which will require DH 330 million. The company plans to build a 300-room Ibis Hotel and a 250-room Novotel Hotel in a major complex that would also include offices, a commercial center, and parking. Work on this infrastructure will begin in February 2004 and is scheduled to open two years later.
http://www.north-africa.com/all/industry.htm
----------------------------------------------------------------------------

First international festival of magic arts opens in Marrakech.
Local, 3/20/2004

The first magic arts festival opened in Marrakech Thursday with the participation of about 30 world-famed magicians, including two Moroccans. Destitute school kids and children living in charity houses will be invited for free to some shows. Trophies will be awarded on Saturday to best performers.
http://www.arabicnews.com/ansub/Daily/Day/040320/2004032019.html
-------------------------------------------------------------------------

Maroc Telecom reports 8.5 percent profit increase for 2003.
Mar 24, 2004 (Al-Bawaba via COMTEX)

Maroc Telecom has reported a profit of four billion Moroccan dirhams ($444 million) for 2003, an 8.5 percent increase compared to figures from the previous year. According to the company Director General Abdeslam Ahizoune, Maroc Telecom achieved an MD 15.2 billion turnover last year, a 3.4 percent increase compared to 2002, he said at a press conference.  Ahizoune also said that the company's mobile subscriber base had reached five million users, a 68 percent market share. Maroc Telecom's fixed phone line subscriber based now stands at 1.2 million users.  Maroc Telecom is the largest telecommunications provider and mobile operator in Morocco. Global media and communications company Vivendi Universal holds 35 percent of Maroc Telecom's shares and is responsible for managing its operations. - (menareport.com) By Mena Report Reporters (C) 2004 Albawaba.com, All rights reserved http://www.zawya.com/Story.cfm?id=084w2224&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C
----------------------------------------------------------------------------

GPRS improved in Morocco.

Morocco's Marco Telecom has ordered a GPRS network monitoring <http://www.cellular-news.com/story/10919.shtml> platform from ADC. ADC has won the contract with Maroc Telecom via its partner in the region, Audilog. "Maroc Telecom has always played an important part in developing Morocco's network infrastructure and introducing new services to the region," said Vladimir Waksman, chief executive officer for Audilog. "We believe that ADC's world-class products combined with our local knowledge will help Maroc Telecom to further promote universal access to telecommunications and accelerate the deployment of quality, sophisticated mobile http://www.cellular-news.com/story/10919.shtml  services in the Kingdom."

"Over the past few years, Maroc Telecom's mobile business has grown exponentially with the number of wireless <http://www.cellular-news.com/story/10919.shtml> subscribers outnumbering fixed line subscribers four to one," said David Heaps, senior vice president and general manager of the Metrica group of the Software Systems Business Unit for ADC. "This is an exciting time for Maroc Telecom and we looking forward to working with them and our partner, Audilog, to address the increasing number of opportunities for GPRS services in the region." Maroc Telecom is Morocco's leading telecommunications provider, offering mobile, fixed and Internet access http://www.cellular-news.com/story/10919.shtml  to its local and international customers. Vivendi Universal holds 35% of Maroc Telecom's shares and is responsible for managing its operations. Maroc Telecom has over 4 million mobile phone subscribers and 1.2 million fixed-line telephone subscribers.
http://www.cellular-news.com/story/10919.shtml
----------------------------------------------------------------------------

Poll Results Show Troubling Sentiments on Immigration Among Moroccans

The Moroccan NGO "Pateras de la Vie" conducted a survey, which results point to troubling trends in immigration issues. The poll found that as many as 64% of the Moroccans wish to immigrate and move to Spain. The NGO has launched a campaign to inform Moroccans of the risks and dangers of illegal immigration and the sea crossing from Morocco to Spain.
http://www.north-africa.com/all/industry.htm
----------------------------------------------------------------------------

Large Resources for the 2004 Morocco Census

Census officials will get important resources to size the Moroccan population and measure the size of the country's housing in 2004. Some 67,000 agents will contribute to the census effort using 3,500 vehicles and some 300 tons of paper.
http://www.north-africa.com/all/industry.htm

#########################################################

These postings are provided without permission of the copyright owner for purposes of criticism, comment, scholarship, and research under the "Fair Use" provisions of U.S. Government copyright laws and it may not be distributed further without permission of the identified copyright owner.  The poster does not vouch for the accuracy of the content of the message, which is the sole responsibility of the copyright holder.