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Monday, December 13, 2010     GET REAL

Cable: Corruption among Moroccan royals called rampant

LONDON — The United States has determined that Morocco's ruling family was forcing businessmen to pay bribes.

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A U.S. government report asserted that the family of Moroccan King Mohammed has solicited payments from developers and property managers in the North African country. A State Department cable said corruption was rampant in the royal family as well as within the government.

"While corrupt practices existed during the reign of King Hassan II, they have become much more institutionalized with King Mohammed VI," a cable from the U.S. embassy in Rabat said.


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The 2009 cable, which quoted a Moroccan businessman, said the royal family was demanding payment for the approval of any development project. The cable cited Omnium Nord Africain, a Moroccan holding company owned by the king, which approves all large projects.

"To have discussions with anyone else would be a waste of time," a cable said.

ONA was said to have come under the direct control of the king and two of his aides. The cables, released by WikiLeaks, said the company has been benefiting from the real estate boom in Morocco, fueled by Gulf Arab investments and the purchase of homes by leading Saudis.

"Corruption is prevalent at all levels of Moroccan society," another State Department cable said.

The cables appear to confirm reports by the Moroccan opposition of widespread official corruption. The opposition has asserted that the king refused to disclose his interests in Moroccan companies awarded government contracts and permits.

ONA was deemed a leading company in Morocco. In 2008, the company came into the spotlight when the chief executive officer of ONA's telecommunications subsidiary was fired on allegations of mismanagement.

U.S. diplomats did not appear surprised by the dismissal at ONA. Cables from the U.S. embassy in Rabat asserted that the king regularly replaced ONA senior executives.

"The palace can be very demanding," the cable quoted an unidentified Moroccan executive as saying. "When the palace calls, if you don't pick up the phone on the first ring you're in trouble."

The State Department did not expect the king to end or reduce his investments. The cables said Mohammed held a stake in "virtually every major real estate project here."

"A former U.S. ambassador to Morocco, who remains closely connected to the palace, separately lamented to us what he termed the appalling greed of those close to King Mohammed VI," a cable said. "This phenomenon seriously undermines the good governance that the Moroccan government is working hard to promote."



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