US embassy cable - 05RABAT1842

C O N F I D E N T I A L SECTION 01 OF 05 RABAT 001842 
 
SIPDIS 
 
STATE FOR NEA/MAG, NEA/OFI 
PARIS FOR ZEYA 
LONDON FOR TSOU 
ROME FOR ROSE 
 
E.O. 12958: DECL: 08/25/2015 
TAGS: PGOV, ECON, EAID, KMCA, KMPI, MO 
SUBJECT: THE KING'S ROYAL FOUNDATIONS AND THEIR ROLE IN 
MOROCCAN POLITICS 
 
REF: RABAT 1104 
 
Classified By: Pol/C Timothy Lenderking for Reasons 1.4 (b), (d) 
 
1.  (C) SUMMARY:  The Palace's royal foundations occupy a 
unique position in Morocco's political landscape.  Headed by 
a member of the royal family (often the King), they are 
autonomous from the government, which allows them freedom of 
action and funding, but have the ability to closely partner 
with the government to accomplish particular goals.  The 
diverse aims of the nine royal foundations range from 
providing services to teachers and reintegrating prisoners 
into society to building infrastructure and encouraging 
social development in the country.  Taken together, the 
foundations are meeting crucial needs that the Moroccan 
government (GOM) does not have the capability of addressing 
on its own.  Yet, key questions linger about the extent to 
which the King uses the foundations as true social 
organizations, political tools of the Palace, or something in 
between.  In any case, the royal foundations appear to be the 
King's primary vehicle for executing his "politics of 
proximity" by which he is perceived to be close to the 
populace.  This message analyzes the function, funding, and 
politics of the most important of Morocco's nine royal 
foundations.  END SUMMARY. 
 
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THE WHO'S WHO OF ROYAL FOUNDATIONS 
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2.  (SBU) Morocco's royal foundations are difficult to define 
uniformly, other than that they share the characteristic of 
being presided over by a member of the royal family.  There 
are nine royal foundations in Morocco: 
 
-- Mohammed V Foundation for Solidarity 
-- Mohammed VI Foundation for the Promotion of Social Works 
of Education 
-- Hassan II Foundation for Moroccans Living Abroad 
-- Mohammed VI Foundation for the Reinsertion of Prisoners 
-- Mohammed VI Foundation for the Protection of the 
Environment 
-- Hassan II Foundation for Ex-Servicemen and Veterans 
-- Hassan II Foundation for the Handicapped 
-- Lalla Asmaa Foundation for the Deaf 
-- Hassan II Foundation for Social Works for the Agents of 
the Interior Ministry. 
 
3.  (SBU) The Mohammed V Foundation for Solidarity is by far 
the largest and most prominent of the nine in terms of budget 
and public stature.  It serves as the "mother hen" of other 
foundations, often providing funding for their activities. 
After the Mohammed V Foundation for Solidarity, the 
foundations focusing on education, Moroccans living abroad, 
prisoners, and the environment attract the most public 
attention.  The remainder have a much lower public profile. 
This cable focuses only on those foundations that are most 
prominent and about which post is best informed. 
 
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LEADERSHIP 
---------- 
 
4.  (SBU) Each royal foundation is led by a board of 
directors that is chaired by a member of the royal family. 
King Mohammed VI chairs the important Mohammed V Foundation 
for Solidarity as well as the foundations bearing his name 
that focus on education and prisoners.  Princess Lalla Hasna, 
the King's younger sister, chairs the Mohammed VI Foundation 
for the Environment, while Princess Lalla Meryem, an older 
sister of the King, heads the Hassan II Foundation for 
Moroccans Living Abroad.  The composition of the board of 
directors is slightly different for each foundation, but each 
board generally includes influential members of the business 
community as well as the heads of government ministries that 
correspond to each foundation's sphere of activities.  For 
example, the heads of the national electric, water, ports, 
phosphates, and aluminum companies sit on the Mohammed VI 
Foundation for the Protection of the Environment's board of 
directors.  The King's advisor for social affairs, Zoulikha 
Nasri, moreover, is President of the Mohammed V Foundation 
for Solidarity and is a member of the board of the Mohammed 
VI Foundation for the Reinsertion of Prisoners.  This 
leadership structure ensures the royal family's near absolute 
control over these foundations. 
 
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LEGAL STRUCTURE 
--------------- 
 
5.  (SBU) Several of the royal foundations trace their 
existence and formal grounding in the state to a "dahir," or 
royal decree.  The Mohammed V Foundation for Solidarity, 
Mohammed VI Foundation for the Promotion of Social Works of 
Education, and the Hassan II Foundation for Moroccans Living 
Abroad, for example, were established by dahir, which is a 
legal charter called for by the King, passed by Parliament, 
and converted into law.  These charters specify precisely the 
mission of a foundation and the means by which it is to 
achieve this mission.  This legal charter allows the 
foundations to be able to utilize government materials and 
assets.  Moroccan NGOs do not enjoy the same legal 
relationship with the state and monarchy as do these three 
royal foundations. 
 
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FUNDING 
------- 
 
6.  (SBU) Royal foundations can solicit and are able to use 
both private and public funds.  Some, like the Mohammed V 
Foundation for Solidarity, rely solely on private funds, 
which are raised throughout the year but largely during the 
annual, week-long, solidarity campaign across Morocco.  In 
2004, for example, the Mohammed V Foundation for Solidarity 
raised 208 million Dirhams (USD 23 million) during the 
fundraising campaign, according to its 2004 financial report. 
 The lion's share of these private donations comes from the 
members of the board of directors and the foundation's 
"permanent support committee," which comprises a group of 
Morocco's top business leaders.  While it is unknown how much 
money the Palace contributes, the Mohammed V Foundation for 
Solidarity has built up a 370.9 million Dirhams (USD 41.7 
million) surplus in the five years between 1999 and 2004, and 
has dispensed 811.6 million Dirhams (USD 91.2 million) over 
the same period, according to its 2004 financial report. 
 
7.  (SBU) The smaller foundations rely on a blend of funding. 
 The Mohammed VI Foundation for the Protection of the 
Environment is funded through private sponsorships and 
donations (Maroc Telecom, for example, recently sponsored one 
of the foundation's city beautification projects) as well as 
through government contributions.  The same is true of the 
Mohammed VI Foundation for the Reinsertion of Prisoners, 
which, according to press reports, raised 14.4 million 
Dirhams (USD 1.6 million) in 2005, but also receives 
contributions from the Mohammed V Foundation for Solidarity 
for specific projects and closely cooperates with the 
government. 
 
8.  (SBU) The exception to this funding structure is the 
Mohammed VI Foundation for the Promotion of Social Works of 
Education, which receives the bulk of its money through small 
fees (20-80 Dirhams, or USD 2-8)) charged to its members and 
an annual subsidy from the state equal to two percent of the 
government's total expenditure on education wages in the 
country.  While each foundation may have unique sources of 
funding, they all share a commitment to the responsible use 
of their resources.  Most foundations, including the Mohammed 
V Foundation for Solidarity, are independently audited by the 
American firm KPMG as a safeguard against financial 
mismanagement and as a means for the King to set an example 
of his commitment to the corruption-free management of public 
resources. 
 
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MOHAMMED V FOUNDATION FOR SOLIDARITY 
------------------------------------ 
 
9.  (SBU) According to its incorporation documents, the 
Mohammed V Foundation for Solidarity, which was established 
in 1999 by King Hassan II, is a "state-approved public 
utility institution that works with other social partners to 
fight poverty."  The foundation undertakes initiatives 
organized under three broad pillars: Humanitarian Action, 
Social Action, and Sustainable Development.  Recent 
humanitarian actions have included assistance to the region 
of Al Hoceima, which was struck by a devastating earthquake 
in 2004, as well as the provision of food and other 
assistance to the poor during Ramadan.  Under the social 
action pillar, the foundation has, among other things, built 
dormitories for students, tended to the handicapped, and 
extended healthcare to rural areas.  Under the sustainable 
development pillar, the foundation has partnered with civil 
society and the government to expand basic infrastructure 
(e.g., potable water), promote adult literacy, and underwrite 
projects that generate sustainable income.  Its actions 
closely shadow those of the Ministries of Health, Social 
Development, Family, and Solidarity.  The foundation enjoys a 
very positive public image thanks in part to frequent public 
events involving the King as well as its annual, national 
solidarity week held in late October/early November. 
 
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MOHAMMED VI FOUNDATION FOR THE PROMOTION OF EDUCATION 
--------------------------------------------- -------- 
 
10.  (SBU) According to its website (www.fm6-education.ma), 
the Mohammed VI Foundation for the Promotion of Social Works 
of Education was established by dahir in 2001 out of "concern 
for Morocco's family of teachers."  Parliament approved its 
charter in 2001 and in 2002 the foundation initiated 
operations.  The foundation provides its members with 
discounted medical insurance and mortgages.  It also has a 
pension fund and offers a competitive scholarship program for 
children of members.  In addition, the foundation provides 
discounts for hotels, trains, and camping, as well as aid for 
members to complete the Haj.  Benefits are limited solely to 
educators and civil servants involved with education.  The 
foundation works closely with the government and provides a 
strong incentive for a career in education. 
 
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MOHAMMED VI FOUNDATION FOR THE PROTECTION OF THE ENVIRONMENT 
--------------------------------------------- --------------- 
 
11.  (SBU) Under the leadership of his sister Princess Lalla 
Hasna, who has a history of involvement with environmental 
causes, the King created the Mohammed VI Foundation for the 
Protection of the Environment in 2001.  The foundation's 
programs focus on initiatives involving beaches, city 
beautification, and air quality.  It sponsors national 
campaigns to keep beaches clean, equip them with adequate 
infrastructure, and have them certified under the 
international "blue flag" program run by the Federation for 
Environmental Education.  The foundation also supports a 
"flowering cities" program that plants gardens in major 
cities such as Rabat and Marrakech.  Its air quality programs 
have included initiatives to control exhaust emissions and 
introduce cleaner-burning gas in the country.  The 
foundation's actions closely shadow those of the Ministry of 
Agriculture, Rural Development, and Sea Fisheries. 
 
--------------------------------------------- --- 
HASSAN II FOUNDATION FOR MOROCCANS LIVING ABROAD 
--------------------------------------------- --- 
 
12.  (SBU) Established in 1990 by the late King Hassan II, 
the Hassan II Foundation for Moroccans Living Abroad features 
seven major programs dedicated to helping Moroccans living 
abroad (MRE) maintain their ties to the "fatherland".  The 
foundation: 1) analyzes the Moroccan community abroad; 2) 
arranges language training and religious education abroad, 
particularly during Ramadan; 3) provides social assistance 
(in the form of material aid and information) to MREs in the 
case of a disaster; 4) informs MREs of events in Morocco and 
aims to promote the public image of MREs in the countries in 
which they live (mainly France and Spain); 5) provides legal 
assistance to MREs; 6) coordinates and ensures effectiveness 
of private efforts to meet the needs of MREs; and 7) 
facilitates MRE investment in Morocco.  The foundation's 
operations are parallel to those undertaken by the Minister 
Delegate to the Minister of Foreign Affairs and Cooperation 
in Charge of Moroccans Living Abroad.  The foundation also 
reinforces cultural and social ties, subtly encouraging 
important remittances and MRE tourism in Morocco (reftel). 
 
--------------------------------------------- ---------- 
MOHAMMED VI FOUNDATION FOR THE REINSERTION OF PRISONERS 
--------------------------------------------- ---------- 
 
13.  (SBU) King Mohammed VI created the Mohammed VI 
Foundation for the Reinsertion of Prisoners in 2002.  The 
foundation is smaller than other foundations in terms of both 
public presence and outreach.  It has three main aims under 
the philosophy of "consolidating the reforming and teaching 
vocation of the penal establishment by making prisons a 
social and human space of reintegration," as the King stated 
on the occasion of the foundation's establishment.  The first 
objective is to create vocational training centers in prisons 
in order to develop skills that are readily employable after 
a prisoner's release.  Since its inception, these centers 
have trained some 5,130 prisoners, focusing particularly on 
younger prisoners, according to press reports.  The second 
priority of the foundation is to improve the conditions 
within the country's 56 prisons.  Finally, the foundation 
endeavors to change the public's negative perception of 
prisoners in order to mitigate the barriers to their complete 
reintegration upon release.  The foundation sponsors for this 
purpose an annual nationwide awareness week in late May. 
Activities of the foundation mirror in many respects those of 
the Ministries of Justice and Social Development. 
 
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SOMEWHERE BETWEEN NGOs AND THE GOVERNMENT 
----------------------------------------- 
 
14.  (SBU)  Neither an NGO nor an arm of the government, the 
foundations have a unique relationship with the GOM, but all 
retain a large degree of independence.  The Mohammed VI 
Foundation for the Promotion of Social Works of Education 
collaborates perhaps most closely with the government, 
working directly with the various ministries responsible for 
education in Morocco to provide additional benefits for 
teachers.  Of the nine foundations, it also appears to have 
the tightest funding ties to the government, a connection 
that is reinforced by the link to the foundation's website 
from a GOM website.  Other foundations seem to maintain a 
healthy distance between themselves and the government. 
 
15.  (SBU) Nevertheless, all foundations partner with 
government ministries to execute their activities.  The 
Mohammed V Foundation for Solidarity, for example, 
collaborates with the Ministry of Habous and Islamic Affairs 
to provide the poor with meals during Ramadan.  The Mohammed 
VI Foundation for the Reinsertion of Prisoners cooperated in 
2004 with the Secretary of State in Charge of Vocational 
Training in the Ministry of Justice and with the Office of 
Vocational Training and Job Promotion to build a vocational 
training center in Ain Sebaa for women prisoners, press 
reports.  Foundations seem to enjoy the luxury of 
independence while benefiting from partnerships with 
government agencies as needed to achieve their goals. 
 
16.  (SBU) All nine foundations also work with NGOs across 
Morocco, not as a substitute but rather as a companion and 
enabler of civil society organizations.  The Mohammed V 
Foundation for Solidarity in particular has made it a 
priority to collaborate with and support NGOs.  Since its 
inception, it has supported more than 500 associations 
throughout Morocco through either financial assistance or 
in-kind donations.  King Mohammed is cautious, however, not 
to allow his royal foundations to take over as the only 
social actor in Morocco.  As he stated in his National 
Solidarity Week speech in 2000, "When we created the 
(Mohammed V Foundation for Solidarity)...our objective was 
not to create an alternative structure to replace the various 
organizations of the State or the public institutions that 
protect social security or to compete with other social 
actors.  Our effective leadership of the (foundation) does 
not distinguish it from the other structures which act in 
civil society." 
 
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COMMENT 
------- 
 
17.  (C) King Mohammed VI is keenly aware that he and the 
government are under intense pressure to satisfy the mounting 
social and economic needs of Morocco's growing population, as 
demonstrated by the King's introduction of the National 
Initiative for Human Development.  The royal foundations 
equip the King with a convenient and well-financed tool that 
is outside the realm of government through which the King can 
deliver critical services and other forms of relief to his 
citizens.  By funding NGOs, initiating projects of assistance 
for the neglected, and tending to the many social ills of the 
country, the foundations expand the King's prestige and 
attract public and private awareness and funding to where 
they are needed most.  The universally positive press that 
the King's visible involvement in the foundations' work 
generates helps alleviate the political pressures on the King 
and shifts negative attention away from the Palace and toward 
the Moroccan government, which many see as being broken and 
ineffective.  In this fashion, the royal foundations function 
as the King's primary vehicle for carrying out his "politics 
of proximity," by which he is seen as being close to and in 
tune with the needs of his people.  END COMMENT. 
RILEY