Travel Allowance Fraud: Defendants Face Up to 7 Years in Prison

Algiers-The Economic and Financial Criminal Division Court of Sidi M’Hamed has scheduled September 2 for the delivery of its verdicts in the case involving the manipulation of the €750 travel allowance.

Eight defendants—identified by the initials “K.H.”, “Q.A.”, “H.A.”, “T.F.”, “F.M.M.”, “B.N.”, “A.S.” and “M.S.”—appeared before the Third Chamber of the Economic and Financial Criminal Division Court. They are facing charges of forming an organized criminal group for the illegal movement of capital into and out of the country, as well as abuse of office.

According to the prosecution, the mastermind of the criminal network, “K.H.”, coordinated with the other defendants to arrange their legal entry into Tunisia and have their passports stamped, before quickly returning them to Algeria through unguarded border crossings without completing the legally required seven-day stay. They were then taken back into Tunisia to complete the formalities. The elaborate scheme, prosecutors said, directly affected the stability of the foreign-exchange market.

Although the defendants denied the allegations against them and sought by various means to evade responsibility and avoid criminal penalties, the public prosecutor requested prison sentences ranging from five to seven years. He stressed that the charges concern the manipulation of the €750 travel allowance introduced by the Bank of Algeria.

The prosecution maintained that evidence and corroborating indications had established that the defendants had formed an organized criminal group to circumvent regulations governing the movement of capital into and out of the country. Several bank employees, it said, had also abused their positions to enable the defendants to obtain the travel allowance and subsequently manipulate it at will.

The Public Prosecutor’s Office further argued that the defendants had attempted to evade punishment. A judicial expert examination, it said, established that the main defendant, “K.H.”, had been in contact with the other members of the group and organized coordinated trips to Tunisia in order to circumvent the €750 travel allowance rules, without observing the statutory period required by law. The scheme allegedly involved the cooperation and complicity of bank employees who facilitated “K.H.’s” access to the allowance without him handing the funds over to the individuals named in the case whose applications were under investigation.

Moreover, the prosecutor said that an examination and forensic analysis of the seized mobile phones revealed two phone calls between the main defendant, “K.H.”, and a police officer identified as “A.S.”. According to the prosecutor, this further demonstrated the organized criminal operations allegedly carried out by the defendants, which caused significant losses to the Bank of Algeria through the manipulation of the travel allowance.

The court is expected to deliver its verdicts on September 2. The case has drawn particular attention because it concerns the misuse of a state-backed travel allowance and allegations of collusion involving bank employees, raising broader questions about controls over foreign-currency transactions and the enforcement of Algeria’s exchange regulations.