Tag Archive | "Corruption"

The latest corruption news from Iraq – company or government bribes, theft, stealing – brought to you by Iraq Business News

Contractor Pleads Guilty in Iraq Bribes Case


By John Lee.

A man extradited from Iraq to the United States has pleaded guilty to conspiracy to commit wire fraud, and to two charges related to leaving the country after his arrest.

Metin Atilan, who has dual Turkish and U.S. citizenship, was charged with conspiring to pay bribes and kickbacks to win a contract to supply 353 trailers for U.S. operations in Iraq.

He is scheduled to be sentenced on 1st July; his attorney said Thursday that the two sides agreed to request a sentencing range of 30 to 63 months with a $1 million fine and other conditions.

(Source: ABC News)

(Justice image via Shutterstock)

Posted in SecurityComments (0)

KRG Rejects Korean Corruption Claims


By John Lee.

The Kurdistan Regional Government (KRG) has completely rejected what it calls “the false and malicious allegations of misuse of funds made against the KRG and the Minister of Natural Resources” by an opposition MP in the Republic of South Korea and which were published by the Korea Times.

Korean MP Chun Soon-ok claims that $31.4 million (36.6 billion Iraqi dinars), given as a signature bonus by the Korea National Oil Corporation (KNOC), disappeared after the KNOC sent it in 2008 to HSBC in London to an account given by KRG minister Ashti Hawrami.

The KRG says that KNOC paid a total of $235,500,000 (which included the $31.4 million amount referred to by the Korean MP) to the KRG as part of its contractual obligations under the PSCs, and that this money was paid into the KRG’s account in HSBC in London.

This money and the whole amount referred to above is fully accounted for in the KRG’s accounts, and has been spent by the KRG in the normal course of government business,” the KRG added in a statement.

(Sources: Korea Times, KRG)

(Corruption image via Shutterstock)

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Bogus University Grads Clog Job Market


By Adnan Abu Zeed for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Meager employment opportunities have led Iraqi university graduates holding doctoral and master’s degrees to despair, as they pursue fruitless searches for jobs in government ministries and the private sector.

In Babil province Feb. 3, some 200 unemployed university graduates attended a seminar in Murdoch Hall in Babil’s tourist resort. Also in attendance were the parliamentarian Haitham al-Jubouri as well as representatives from the Ministry of Higher Education and civil society organizations. The seminar included discussions about how to improve employment opportunities in Iraq.

Shabib al-Midhati, who has a master’s degree in the plastic arts, told Al-Monitor at the seminar, “After my trip to the Ministry of Culture and Higher Education where I was looking for a job, I felt that it won’t be easy [to find work] especially in light of the financial crisis the country is going through.”

Mohammed Alaa, who hails from Baghdad and is a graduate of the Academy of Fine Arts at the University of Baghdad, told Al-Monitor, “Such meetings no longer work, as they mostly lead to promises that will not be kept. These are promises made for political campaigns only.” He stated, “The scarce opportunities are first and foremost given to the relatives and acquaintances of politicians and officials.”

On the sidelines of the seminar, Saad Hassan, who has a master’s in education, said that bribery “is the nearest road to appointment” and admitted that he had “paid around $3,000 to a broker in order to get a teaching job.”

Iraqis with bachelor’s and postgraduate degrees as well as graduates of institutes are actively organizing protests to compel the government to create job opportunities. Dozens of unemployed graduates demonstrated Feb. 3 in front of the provincial council building in Najaf, carrying banners demanding employment.

Posted in Education & Training, EmploymentComments (0)

Iraq’s Corruption Continues Unchecked


By Wassim Bassem for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

An Iraqi contractor who works on road pavement and sewage projects in the Iraqi capital told Al-Monitor, “Government officials as well as senior contractors related to them have stakes in most, if not all, of Iraq’s construction projects, which are sold to executing contractors at a price that guarantees their implementation with the minimum level of specifications and at the lowest cost.”

Speaking on condition of anonymity, he said, “This revelation is not a secret. It is a fact that the people, government officials and the media continuously talk about.” The contractor’s assertion was supported by a statement issued by Baghdad province Jan. 19, reporting that 42 people had been referred to the Commission on Public Integrity for corrupt practices involving projects in Baghdad.

Bahaa al-Shammari, a civil engineer who has worked on several reconstruction projects, confirmed to Al-Monitor, “It’s not just about financial corruption, but administrative corruption and circumvention of the law as well. Officials are resorting to their relatives and friends by registering companies in their names for form’s sake when these companies do not have skilled technicians or mechanisms.

With the help of officials, [the companies] sign a contract to rebuild a school, for example, and they carry out the projects either by selling it to another contractor or by recruiting workers and developing mechanisms. This ultimately leads to failed projects.”

In Mahawil city, north of Babylon, a contractor with limited resources was paving a street. He told Al-Monitor on condition of anonymity, “[I] only got a street pavement contract after hard efforts and after [I] had to offer employees and officials several gifts. I will do my best to do a good job, but the problem is the lack of allocated money.”

Posted in Industry & Trade, Politics, SecurityComments Off

$434m in Damages and Fines for Fraud


By John Lee.

Two companies, Supreme Foodservice GmbH and Supreme Foodservice FZE, have pleaded guilty to fraud charges and been ordered to pay $288.3 million (336 billion Iraqi dinars) in fines and restitutions.

According to the US Department of Justice, the companies, part of the Supreme Group, supplied food and water to coalition troops in Iraq and Afghanistan, and used a local company it controlled, Jamal Ahli Foods Co, to mark up the prices was paying for the products, costing the government an estimated $48 million.

Frederick Morgan, lawyer for the whistleblower Michael Epp, said:

“We believe this is the largest fraud recovery against any contractor relating to the Afghanistan and Iraq wars, the largest recovery in a military procurement case initiated by a qui tam whistleblower, and one of the largest fraud recoveries against any defense contractor.”

In a statement, Emma Sharma, general counsel for Supreme Group USA, said:

“We accept full responsibility for and deeply regret our past actions. We have implemented new compliance mechanisms and strengthened our internal processes.

We now have some of the most rigorous controls in the industry. We recognise that to re-earn trust, we must always act with integrity.

That’s where our focus is and that’s where our focus will continue to be.”

(Sources: Supply Management, Supreme Group)

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CEO Guilty in Iraq USAID Fraud


By John Lee.

The former CEO of US-based engineering consulting firm Louis Berger Group has pleaded guilty to overbilling for reconstruction contracts in Iraq and Afghanistan.

Bloomberg reports that Derish Wolff, 79, admitted that he conspired to defraud the U.S. Agency for International Development (USAID) over nearly 20 years, enriching himself and his company with money intended for important reconstruction projects.

Wolff is scheduled to be sentenced on 20th March, and could face up to 10 years in prison.

(Source: Bloomberg)

(Corruption image via Shutterstock)

Posted in Construction & Engineering, SecurityComments (2)

Ghost Contractors sink Baghdad after Rains


By Wassim Bassem for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The first rainfall of the season swept Iraqi cities Nov. 21, causing flooding in schools, houses and streets.

Siham Ahmed, a student from al-Diwaniya city south of Baghdad, couldn’t get to class since the roads flooded and the school itself was submerged. “The students’ school uniforms and books were ruined in the mud,” she told Al-Monitor.

The flooding of schools in al-Diwaniya and other parts of Iraq has become an annual phenomenon that local authorities have failed to resolve. A video of a school flooding in Basra province went viral on YouTube and Facebook. Ghayath, a digital activist, commented on the video: “Where is the custodian of Basra?” in reference to the Basra governor and officials.

As Iraqis wage war against the Islamic State (IS), they are also engaged in another war against nature, as streets, city centers and sewage systems flood. Financial corruption has stalled infrastructure projects, and Iraqi infrastructure has subsequently collapsed following first rainfall of the season.

The flooding has even become good material for jokes, despite the tragedy. A YouTube video described the virtual lakes in the streets as an Iraqi “Titanic.”

The people blame corruption and ghost contractors who coordinate with officials to get tenders in return for financial kickbacks, and then sell subcontracts to other people. Jawad al-Chamri, the media officer of the High Commissioner for Human Rights in Iraq, confirmed this practice.

“Corruption in infrastructure [projects] is not just a waste of money, but also a a failure of human rights,” he told Al-Monitor. “The floods in newly built schools have pushed Iraqis to lose trust in their society, as it derogated their right to education.”

Posted in Construction & Engineering, SecurityComments (3)

PM Abadi: Corruption as Dangerous as Terrorism


By John Lee.

On a recent visit to the holy city of Karbala, Prime Minister Haider Al-Abadi described the existence of ghost” soldiers as a crime on two fronts – the theft of public money and the breach in security which led to the murders of innocent people.

He described the efforts of the Ministry of Interior to pursue those who are unlawfully receiving salaries and warned that corruption is no less dangerous than terrorism.

The Prime Minister also noted that Iraq is facing a financial crisis because of the decline in oil prices and oil revenues, reiterating that he had taken measures to confront this serious problem, starting with the reduction of salaries of cabinet members.

(Source: Office of the Prime Minister)

Posted in Industry & Trade, SecurityComments (6)

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