Iraq’s “theft of the century”…government heralds a positive development

Iraqi government In a statement released by the Presidency of the Council of Ministers Mohamed Shiaa Al-Sudani.

The release said that some 182 billion Iraqi dinars, or $125 million, of an embezzled sum will be recovered through the confiscation of government-owned property and assets. for a businessman accomplice in one case corruption.

Al-Sudani stressed that the ongoing investigations will not rule out anyone involved in the case, and that the government is working to recover the entire stolen amount.

The Iraqi prime minister indicated that the investigation was still ongoing and identified other people involved.

embezzlement process

• The refunded amount had been paid to Noor Zuhair Jassim, a businessman arrested in connection with the case, along with interest officials. taxes government after withdrawing money from a tax filing account between September 2021 and August 2022.
• Jassim was named CEO of two out of five fictitious companies It was stolen funds.
• Jasim was arrested in late October at Baghdad International Airport.
• According to an internal press release seen by the agency "Associated press"Jassem made more than $1 billion from the account.

How was it stolen?

• The scheme was revealed in October when an internal audit conducted revealed Iraqi Ministry of Finance The General Tax Authority – Iraq’s Internal Revenue Department – fraudulently paid about 3.7 trillion Iraqi dinars, or the equivalent of about $2.5 billion, to five companies.
• These payments were paid with 247 checks cashed in the period from September 9, 2021 to August 11 this year, by a branch of Al-Rafidain Bank which is run by the state and is located within the General Tax Authority.
• The bill included billions of dollars in corporate deposits that should have been returned to them once taxes were deducted and the companies filed updated financial statements.
• The then interim finance minister, Ihsan Abdul-Jabbar, who also held the post of minister, headed oilverify.
• He discovered the theft after receiving complaints from an oil company that it could not recover its tax deposits, according to a senior official familiar with the investigation.
• When the minister inquired about the remaining balance in the account, the tax authority said it had $2.5 billion, but further examination revealed the actual balance was only $100 million, according to the official.
• It was the first indication of the massive theft and provided the subsequent scrutiny to the House Finance Committee.
• Before the check, it was a counter section Money laundry In Rafidain Bank expressed concern to the Ministry of Finance about the high rate of cash withdrawals.
• Former minister before Abdul-Jabbar, Ali Allawi, had asked his office to approve any large levies, but senior tax authorities ignored the request.
• The former minister has resigned Allawi In August to protest corruption and foreign interference in Iraqi affairs.
• Weeks before the first checks were cashed, authorities removed a key element of the complaint, claiming that businesses had complained of long wait times.
• The decision to dismiss the Federal Bureau of Financial Oversight from the trial came at the request of Representative Haitham Al-Jubouri, who then headed the parliamentary finance committee.
• The audit found that the companies, three of which had been set up just weeks before payments were made, submitted false documents in order to claim payments and the auditors could not follow up on the money because it was collected in cash.

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An announcement has come Iraqi government In a statement released by the Presidency of the Council of Ministers Mohamed Shiaa Al-Sudani.

The release said that some 182 billion Iraqi dinars, or $125 million, of an embezzled sum will be recovered through the confiscation of government-owned property and assets. for a businessman accomplice in one case corruption.

Al-Sudani stressed that the ongoing investigation will not rule out anyone involved in the case and that the government is working to recover the entire stolen amount.

The Iraqi prime minister indicated that the investigation was still ongoing and identified other people involved.

embezzlement process

• The refunded amount had been paid to Noor Zuhair Jassim, a businessman arrested in connection with the case, along with interest officials. taxes government after withdrawing money from a tax filing account between September 2021 and August 2022.
• Jassim was named CEO of two out of five fictitious companies It was stolen funds.
• Jasim was arrested in late October at Baghdad International Airport.
• According to an internal statement seen by The Associated Press, Jasim made more than $1 billion from the account.

How was it stolen?

• The scheme was revealed in October when an internal audit conducted revealed Iraqi Ministry of Finance The General Tax Authority – Iraq’s Department of Internal Revenue – fraudulently paid about 3.7 trillion Iraqi dinars, or the equivalent of about $2.5 billion, to five companies.
• These payments were paid with 247 checks cashed in the period from September 9, 2021 to August 11 this year, by a branch of Al-Rafidain Bank which is run by the state and is located within the General Tax Authority.
• The bill included billions of dollars in corporate deposits that should have been returned to them once taxes were deducted and the companies filed updated financial statements.
• The then interim finance minister, Ihsan Abdul-Jabbar, who also held the post of minister, headed oilverify.
• He discovered the theft after receiving complaints from an oil company that it could not recover its tax deposits, according to a senior official familiar with the investigation.
• When the minister inquired about the remaining balance in the account, the tax authority said it had $2.5 billion, but further examination revealed the actual balance was only $100 million, according to the official.
• It was the first indication of the massive theft and provided the subsequent scrutiny to the House Finance Committee.
• Before the check, it was a counter section Money laundry In Rafidain Bank expressed concern to the Ministry of Finance about the high rate of cash withdrawals.
• Former minister before Abdul-Jabbar, Ali Allawi, had asked his office to approve any large levies, but senior tax authorities ignored the request.
• The former minister has resigned Allawi In August to protest corruption and foreign interference in Iraqi affairs.
• Weeks before the first checks were cashed, authorities removed a key element of the complaint, claiming that businesses had complained of long wait times.
• The decision to dismiss the Federal Bureau of Financial Oversight from the trial came at the request of Representative Haitham Al-Jubouri, who then headed the parliamentary finance committee.
• The audit found that the companies, three of which had been set up just weeks before payments were made, submitted false documents in order to claim payments and the auditors could not follow up on the money because it was collected in cash.