Paradise Golf Resort, Morocco

Jim Shannon Excerpts

Wednesday 17th January 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the right hon. Gentleman for securing this debate. I and others present have constituents who have been defrauded. Does he agree that it is past time that our Government stepped up on behalf of the 800 investors who have been defrauded, and used all diplomatic pressure available to achieve a fair solution for those 800 people?

[Tom Brake]

I could not agree more. I gave advance notice of my remarks, so I hope that the Minister will tell us this evening what our Government are able to do to assist the British investors who have been affected by the scandal.

The developer claimed that Amendis had not supplied the water connection, but subsequently it was shown that, in fact, the developer had not paid the invoices from that water company, so the services were not supplied. The scheme was financed by the Banque Centrale Populaire, which was part-owned by the Moroccan state, who provided some guarantees but then withdrew them without the investors’ consent. A critical point is that the Moroccan Government signed an investment agreement in 2015, which stated that the development

“golf course is almost completed, and the residential component is finished”,

but that is a complete fabrication. That is why I think there is a Government connection that requires the Moroccan Government to take responsibility.

In February 2016, the project was in a derelict state. At that point, the Moroccan Government handed over the land to the development company. Given that a requirement was placed on the Moroccan Government to track the progress of the project and make sure that certain milestones were hit, I wonder why they handed over money when it was clear that there had been no activity on the project for seven years. After the developer was arrested, a Government-owned construction company was appointed to complete the project. Certain reassurances were given by the Moroccan embassy here in London that additional money—130 million dirhams—would be provided to the developer, but that money was then withdrawn.

On 26 January 2017, the developer was found guilty in a penal case and sentenced to 20 months’ imprisonment but was released before completing the full sentence in May 2017. Then, on 10 October 2017, the Foreign and Commonwealth Office raised the issue in a meeting with the Moroccan Ministry of Tourism. I hope that the Minister can say whether there have been any developments since then in terms of such contact. The most recent development is that a meeting will take place with the judge involved in the case on 30 January. The core team has asked if someone from the FCO can attend, and again it looks as though the Minister might be able to clarify whether that will be the case. I and the hon. Member for Birmingham, Selly Oak want a formal UK Government representative there.

This scandal raises many issues about the Moroccan Government’s involvement and contractual responsibilities. Clearly, if nothing else, they have a moral responsibility, given the many references to their supporting this project, and they need to respond to that. There are indications that they are at least willing to engage in a dialogue, in that both I and the hon. Gentleman have been into the embassy and spoken to staff there, who are well apprised of the issue, but that does not mean that the matter is resolved. I am sure that the embassy would like it to be resolved, if for no other reason than to stop the very loud protest outside the embassy, which deafens the staff inside the building. There is some incentive, therefore, for them to resolve this.

I acknowledge that the Minister’s direct capacity or ability is restricted in this matter, but I hope that he can first confirm whether there is a role for the FCO in terms of providing advice about whether it is sensible to invest in certain countries—it provides advice, obviously, on whether a country is safe—and secondly whether the FCO will be sending a representative to help the core team and their advocates when they appear in front of the judge. Finally, as highlighted in a couple of interventions, we want reassurances from the Minister, whom I am sure will be well informed on the issue, that the UK Government will not let this drop but will take every opportunity they have to raise it, whether with the Moroccan Ministry of Tourism or the Moroccan Foreign Minister. I saw the Foreign Secretary here earlier. I thought he might be responding to the debate, so as to put lots of oomph behind it, but I am sure he will find out about this as well.

I welcome the opportunity I have had to raise this matter, and I hope that it will be appropriate if I leave my remaining time to the hon. Member for Birmingham, Selly Oak so that he might make a contribution before the Minister responds.