Algerian businessman Khalifa convinced officials to buy “scarps” to desalinate water: investigations

Lebanese journalist Raghed al-Chamaa is behind the 65 million Euros loss due to the importation of water desalination plants by Algerian businessman Abdelmoumene Khalifa, according to investigators.

In May 2002, Algerian President Abdelaziz Bouteflika gave the go-ahead for the construction of a first water desalination plant but the scandal was quickly discovered after Algerian former water minister Abdelmadjid Attar had refused to concretise the project. Investigations showed that Abdelmoumene Khalifa cheated Algerians.   

Abdelmoumene Khalifa seized the opportunity of water crisis 

In the beginning of 2002, Algeria suffered from drought and officials at the Algiers-based national water institution had no choice than cutting off water from dozens of areas in Algiers for many days. Because of that, people took the streets to protest against that. Abdelmoumene Khalifa seized the opportunity and decided to discuss with his assistants to get rid of the crisis and provide water to Algiers’ residents. In 2002, Abdelmoumene Khalifa notified public authorities of his intention to deal with water field and export 5 water desalination plants.Abdelmoumene Khalifa wanted to invest in water field through Khalifa’s branch on construction.      

The money was taken from Khalifa Bank before submitting the demand Khalifa’s representatives submitted a demand to water ministry and committed to purchase 5 water desalination plants in the second week of June, 2002.    

How Abdelmoumene Khalifa cheated the Algerian State 

Abdelmoumene Khalifa rented a floating small plant to desalinate water from the United States of America.  He tried to delude authorities that that plant was a sample of his big project meant to solve the water crisis in Algeria.   

Abdelmoumene imports “scraps” by Algerians’ money to desalinate sea water 

Investigations showed that the five water desalination plants were bought before the public authorities had given the go-ahead for the project. The public treasury paid $26.5 million while three others cost 45 million paid by Khalifa.

 Abdelmoumene Khalifa transferred 5 million Euros on March 15 to an Arab bank in Paris and other 5 billion Euros on March 29, 2002.On April 1st, he transferred 3.5 million Euros and 5 million Euros on May 28. The remaining $8 million was transferred in September 2002, five months after a visit paid by Abdelmoumene Khalifa to Saudi Arabia. In June 2003, two water desalination plants out of five arrived to Algiers’ port. Customs asked for speeding up the completion of their file but water minister refused to approve that asking for precisions from Khalifa’s officials as the file was uncompleted.

In July, Khalifa’s officials of construction decided to put the plants in Boumerdes province (50 km east of Algiers). Because of that, the public treasury lost 36 million Algerian dinars after customs had decided to take the plants out.

 Workers from Philippines started achieving the project in Boumerdes but it was stopped in November 2002. Water ministry called for Swiss experts to examine the project. They found out that the plants were not suitable and were just “scraps.”The total value of the two plants was $3.5 million. The liquidator of Khalifa discovered that the transferred money was used to buy a villa in Cannes, France.