Bob Bradley, a semi-retired 78-year-old, leads the group of investors in PGBR, campaigning for a resolution for our investments in Morocco.
British investors in the Paradise Golf & Beach Resort in Tangier are intensifying their efforts to address a series of challenges impacting their overseas investment in the $200m Moroccan real estate project.
Amid ongoing legal and diplomatic developments, the group seeks a fair resolution reflecting the complexities and stakes of their investment.
The issue
Paradise Golf & Beach Resort, which represents the largest British investment in residential real estate in Morocco, began development in 2007 under a Moroccan government agreement aimed at attracting British investors. This project, developed on state-owned land and monitored by the Moroccan government, cannot therefore be treated solely as a private matter.
A lack of essential offsite infrastructure in the resort area caused significant delays, leading some British investors to protest at the Moroccan embassy in London in January 2016.
Despite being sold out and nearing completion, in an attempt to shift blame for the years of delay, a Moroccan official ordered the arrest of Larbi Tadlaoui, a developer, resulting in halted construction and financing, despite the project being just six months away from delivery.
This plan was disclosed to MPs in January 2018 by Alistair Burt the former Minister of the Middle East and North Africa.
Recently, the higher courts in Morocco cleared Tadlaoui. However the situation remains unresolved for British families, leaving them as collateral victims of these dysfunctions, with significant sums of savings at stake.
As a result, investors are calling on the Government to initiate diplomatic efforts to address the impasse. Over 30 MPs, including David Rutley, Chris Philp and Sir Julian Lewis, have engaged with the Foreign, Commonwealth, and Development Office to achieve a resolution.
The FCDO has expressed its willingness to mediate and facilitate a meeting between the Moroccan Ambassador in London, his officials, and representatives of the concerned investors.
The recent legal development involving Tadlaoui has confirmed his innocence, and cleared him of any fraud or misappropriation of funds. This has fuelled investors’ determination to seek a fair resolution. James Aitken, one investor, said that: “The acquittal of Mr. Tadlaoui, whose innocence has been clearly demonstrated, is a significant development.”
He stressed the necessity to cease unproductive legal battles and encouraged a comprehensive problem-solving approach through dialogue and alternative dispute resolution, respecting Moroccan judicial decisions, the rights of all parties, and the investments of stakeholders.
The UK-Morocco Bilateral Investment Protection Agreement
The role of the UK-Morocco Bilateral Investment Treaty for the promotion and protection of investments, signed in 1990 , is critical in this context. The treaty outlines the commitment to safeguarding the interests of investors in both countries, especially for protection against expropriation, as is happening in this case.
The involvement of the FCDO and the British Ambassador is seen as a positive step toward establishing a framework of trust and legal security for international investors in Morocco. Aitken stated: “We are not only seeking a resolution for ourselves but also aiming to set a precedent that ensures future foreign investments in Morocco are protected.”
We need a swift resolution
In their correspondence with the FCDO, investors have outlined their concerns and desired outcomes. They emphasize the need for a swift, fair, and rule-of-law-respecting diplomatic resolution. The significance of Morocco as a strategic partner for the UK and a preferred destination for British investment is also highlighted.
Aitken has expressed frustration over the former Moroccan government’s handling of the situation:
“The former Moroccan government’s solution, involving the unjust arrest of the developer, subsequent construction halt, and bank takeover, worsened our predicament. We transitioned from having a sold-out resort, nearly completed, to incurring total losses with our properties being dispossessed, when they could have simply allowed the developing company to finish and deliver.”
He and his fellow investors are now urging HM Government to press for the promised resolution made by the Moroccan government. This resolution was announced in Parliament by Burt in January 2018, involving Banque Populaire’s takeover.
Five years later, the situation remains unresolved. The British Ambassador, as indicated by the FCDO, has had “constructive but not conclusive meetings”.
After all these years, it is time for our ambassador in Rabat to shift gear to unlock the situation. It is crucial to call for the mediation of the right decision-makers, known for their integrity and efficiency in Morocco. These include Abdellatif Jouahri, the Director of the Central Bank; Mohcine Jazouli, the Minister for Investment; and Mohamed Benchaaboun, director of the state-owned investment fund FM6I.
As the Paradise Golf & Beach Resort case unfolds, it serves as a critical test of diplomatic relations, legal frameworks, and the commitment to protecting foreign investments as guaranteed in the bilateral investment treaty.