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Morocco World News with agencies
Casablanca, February 16, 2012
Lydec, a unit of France’s Suez Environment, which provides utility services for Casablanca on Thursday has been ordered by the city’s council to pay 546 million dirhams ($64.2 million) for alleged breach of contract.
“On February 10, (Casablanca’s City Council) sent a letter to Lydec requesting that a payment for the said amount be paid,” Lydec said in a statement carried by Reuters.
The ruling issued by Casablanca’ city council is related to “technical and economic commitments specified” under a 30-year concession contract which went into force in 1997.
Lydec, 51-percent owned by Suez Environment, said it “has always objected to both the proceedings and the findings of the audit” on which the council based its ruling.
“Under the provisions of the services management contract … Lydec will resort to a complementary expertise by a specialized and independent firm,” it added.
Since it assumed its functions 15 years ago Lydec came under fire several times for failing to provide qualities services to the population of Casablanca and for its inability to provide essential service, including electricity, water and sanitation, to people living in shantytowns.
