In its 100-page annual report for 2023-2024 released in November and submitted to King Mohammed VI, Morocco’s Supreme Council of Accounts revealed significant financial irregularities in the accounting practices of many of the country’s political parties during the 2022 fiscal year.
The Supreme Council’s findings disclosed that 29 political parties had received a total of MAD 152.96 million in funds during the year, including state subsidies. However, their reported expenditures amounted to only MAD 130.65 million, leaving over MAD 22 million unaccounted for.
Further investigation uncovered financial irregularities in the records of five parties amounting to MAD 5.19 million. The report does not specify the names of the political parties.
These irregularities included receiving funds totaling MAD 3.08 million without providing the legally required documentation, and receiving amounts exceeding the legal cash payment limit for individual transactions of MAD 10,000 by MAD 2.11 million.
The Supreme Council also found that 26% of declared expenditures, equivalent to MAD 34.35 million, were undocumented or inadequately documented. Of this amount, MAD 17.25 million was spent on expenses without legal proof, MAD 1.46 million was tied to expenditures either insufficiently documented or not attributed to the party, and MAD 15.64 million involved the use of additional annual subsidies without supporting documents.
The Supreme Council criticized the poor financial management practices of political parties, highlighting widespread non-compliance with the General Accounting Standards Manual in use in Morocco and the Unified Accounting Plan. It also pointed to a lack of supporting documentation for annual financial statements, making it challenging for certified accountants to verify the accuracy of the accounts.
To address these shortcomings, the Council proposed several measures to improve financial transparency. These include holding training sessions for party staff to enhance their understanding and use of the Unified Accounting Plan, developing a standardized accounting procedures guide to unify financial management practices across parties, and introducing a unified information system for party accounting to ensure consistency and improve oversight.
The Supreme Council in its report underscored the urgent need for reforms to address such discrepancies and promote greater transparency and good governance in the financial management of Morocco’s political parties.