Series of financial scandals close down major national company in eastern Algeria

The national company of electrical equipment supply based in the eastern parts of Algeria counts among the most important economic units along with the two others located in the west and center of the country.

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• But this one, whose premises are located in the province of Constantine, went on bankruptcy and wound up its activities on account of numerous problems on top of them heavy debts. This situation led to massive layoffs and the company closed down for real.
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• But compromising reports revealed to Echourok that the company’s problems came as a result of series of financial scandals and other gross mismanagements that caused billions of loses involving three successive managers over the last few years.
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• Client benefitted from more than 5 billions Algerian Dinars without guarantees.
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• According to the reports, a client from the province of M’silla acquired equipment from the company valued at more than 5 billions Algerian Dinars during the between 2001-2004 without any payment, though bills have been issued in counterpart.
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• Amazingly enough, the company’s manager has appointed a lawyer soon after discovering the scandal in March 2007 to investigate on the ins and outs of the case but the legal procedure is not making any headway and the client hasn’t been summoned yet.
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• Dead man among the company’s clients
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• The second report sheds light on another scandal involving a dead man this time around. The “client” acquired equipment, six feet under, at a value of 80 millions Algerian Dinars with the complicity of the managers who counterfeited the documents.
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• The third scandal involves a former Member Parliament who acquired equipment valued at more than a billion Algerian Dinars on behalf of company specialized in the production of TV sets devices but o trace of this transaction was found.
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• The company’s accountant has informed his manager about the existence of a deficit in the budget in 2005 as proven in the document that bears his signature.