Thread: Iraq Corruption and Investments

This is from a report of Iraq's anti-corruption committee.

'Billions lost' to corruption in Iraq

18 May [BBC] ... a recent report by Iraq's anti-corruption committee, leaked to the Western media, which reveals the magnitude of the problem facing the Iraqi government.

The report, which is a result of the committee's investigation into some 12,000 complaints of government corruption, says that that among the worst offenders are - in no particular order - the ministries of defence, interior, finance, education and health.

One of the cases, says a defence ministry official, involves tens of thousands of dollars made by illegally charging young recruits up to US $500 each to join the army.

"The report does not even scratch the surface of what goes on. Millions, billions of dollars are being stolen," says Alia Nusaif, an Iraqi MP and member of the parliamentary anti-corruption committee.

After she publicised evidence of corruption in the trade and defence ministries, Ms Nusaif says that both filed law suits against her. Iraq's Prime Minister Nuri Maliki has recently called on his government to declare a war on corruption. But Ms Nusaif says for her it has been a lonely battle.

"He made the same promises last year. The problem is that senior officials are never punished in Iraq," she said. ....

In late April the anti-corruption committee sent a police unit to deliver arrest warrants for senior trade ministry officials, including the minister's two brothers.

But the police were greeted by shots fired into the air by the ministry's own guards. During the brief shoot out that followed, the officials, including the brothers, escaped through a back gate.

One of the brothers has since been caught, but the minister denies allegations of wrong-doing. ...

The problem is that fighting corruption in Iraq is not only difficult, it's also highly dangerous. Last week one of the members of the committee that put together this anti-corruption report was shot dead in the streets of Baghdad.

The infusion--or better yet, avalanche--of US dollars or aid into any impoverished region for warmaking (or peacekeeping) seems to have that effect. It was an enormous problem in Vietnam. Somalia, too. It opens up too many illegal career options.

I'm hoping Iraq will have better luck.

Not sure if this crackdown genuine and effective in reducing corruption?

Culture of corruption prompts Iraq's PM to pledge crackdown

30 May [IrishTimes] THE RESIGNATION of a minister and the levelling of charges of embezzlement, mismanagement and criminality by parliament at several ministries have forced Iraq’s prime minister to pledge to crack down on corruption.

Deputies have been spurred to act by a scandal that precipitated the resignation of trade minister Abdul Falah al-Sudany, a member of Nuri al-Maliki’s own faction.

Investigations are targeting ministry officials responsible for purchasing billions of dollars of rice, flour, edible oil, tea and sugar for rations on which 60 per cent of Iraqis depend. The officials are accused of graft and buying food unfit for human consumption. ...

Although Iraq is an oil exporter, one-quarter of its 27 million people subsist below the poverty line. This scandal erupted in April when police were fired on by ministry guards seeking to prevent the arrest of 10 officials.

Mr Sudany’s two brothers and nephew, accused of taking commissions on sugar purchases, escaped. One brother, Sabah Muhammad Sudany, who served as an aide to the minister, was apprehended in flight with cash, gold and travel documents.

The scandal was transformed into a crisis for Mr Maliki after a mobile phone video surfaced. It showed a party where drunken ministry officials, including Mr Sudany’s brothers, dallied with prostitutes and made fun of the prime minister.

Sabah al-Saadi, chairman of the Commission for Public Integrity, said the gathering “represents the impact of nepotism on the government and wasting of funds by senior officials’ family members”.

The commission issued 387 arrest warrants last month, including for 51 department heads, and has prepared another 997 detention orders.

Mr Maliki told the police to arrest all on the list. He intends to create a committee drawn from his own staff, the cabinet secretariat and anti-corruption agencies to take over the task of purchasing foodstuffs. Oil minister Hussein Shahristani, an ally of the prime minister, is to be summoned before parliament to explain why his ministry has performed poorly in the past three years.

Corruption is endemic in Iraq. ... Iraq is rated the third most-corrupt country of 180 listed by Transparency International.