The OPM is wrong and should be very careful in its statement. What was mentioned by the joint report is not “proof” of guilt or wrong doing but “allegations” substantiated by very strong and many documents-mainly thousands of emails. It is up to the due process legal investigation and court of law decision to prove or otherwise these allegations.
- The Prime Minister instructed the Integrity Commission (an Independent Commission) to take legal measures and calls on the judiciary to open immediate legal proceedings concerning the grave newspaper reports on corruption “during the former governments”; on Saturday 2 April the Integrity Commission began its investigation.
This is very important and welcoming course of action, which echoes what I called for launching immediate investigation in my commentary above mentioned regarding this scandal.
In addition to the corruption cases referred to in the reports, I suggest the Iraqi investigation should also include the sub-contract that was awarded to Unaoil for the rehabilitation of West Qurna oilfield Compressor Stations CS7 and CS8 in July 2015, under current government.
- This Unaoil case as well as the scandalous Missan Refinery contract with the bankrupt Satarem Company (both concluded under current government) should be thoroughly investigated and the Supreme Council for Combating Corruption-SCCC that is chaired by the Prime Minister ought to monitor such investigation thoroughly and constantly.
- Parliamentarian and member of Oil & Energy Committee, Dr. Jamal Abdul Zahra Al-Mohammadawi, in a press conference held yesterday called upon the government to take actions similar to those suggested in my commentary of 31March;
- The Integrity Committee of the Parliament-PIC held this morning a meeting with Inspector General of the Ministry of Oil. The Chairman of PIC, Mr. Talal AlZowbai, in press conference held with other PIC members has reportedly said that the Ministry of Oil have already requested formally from the British and Australian embassies in Baghdad to provide the Ministry with the information related to the allegations. Moreover, PIC is scheduled to hold meetings with the American, British and Australian ambassadors on the same issues.
- Finally, it is vital that the Iraqi related authorities cooperate fully with the international investigations on Unaoil case; keep the public informed on its deliberations, the process and outcome of the investigation.
The co-author of the joint report, Nick McKenzie wrote, “The sources of this story never asked for money”, “What they wanted was for some of the wealthiest and most powerful figures in governments and companies across the globe to be exposed for acting corruptly, and with impunity, for years.”
Though corruption cases have no terms of limitation, nevertheless justice delayed .. justice denied.
Mr Jiyad is an independent development consultant, scholar and Associate with Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: [email protected], Skype ID: Ahmed Mousa Jiyad).
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I received the following feedback from Dr. Hussain Al-Shahristani who also agrees to post it as comment. His feedback was cc-ed to the Prime Minister and many senior government officials, especially at the Ministry of Oil.
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Dear Dr Ahmad Mousa Jiyad
Thank you for your thorough follow-up on the recent Huffington Post and Fairfax Media report. As you may have noticed, I responded immediately to the report publishers and made public statement that I have not known, met or communicated in any way with anybody from Unoil or Ahmad Al Jubouri, and called on the Prime Minister, the Integrity Commission and Ministry of Oil to investigate the allegations and I demanded handover of any documents, emails or other available evidence to the competent Iraqi authorities to help them with the investigation.
I am pleased that the relevant authorities in UK, USA, France, Australia and Monaco are teaming up to uncover any wrongdoing or corruption in regard to this and I am asking the Iraqi government to join this international investigative team to obtain all documents or evidence related to Iraq.
I hope you will continue to follow-up this case eagerly, as you have been on other matters concerning oil contracts in Iraq, and make any new findings available to the widest possible circles as we all owe it to the Iraqi people to inform them truthfully and responsibly about any mishandling of their public funds.
I offer my full cooperation to identify and bring to justice any individual regardless of his position, and to recover any misappropriated public funds.
Best regards,
Hussain Al-Shahristani
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Ahmed Mousa Jiyad,
Iraq/ Development Consultancy & Research,
Norway.
4 April 2016
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Ahmed Mousa Jiyad,
Norway.
4 April 2016
Statement of the Ministry of Oil on Unaoil Corruption Scandal
On 4 April the Ministry issued a statement on the Unaoil scandal posted on its website
http://www.oil.gov.iq/index.php?name=News&file=article&sid=1105 (in Arabic) and the day after, the English text posted on the same website:
http://www.oil.gov.iq/index.php?name=News&file=article&sid=617
In a nutshell, the Statement (or Clarification) whether in its Arabic or English text, is very disappointing reflecting very limited understanding of the issue, inconsistent, contradictory, vague and lacks respect for Iraqi authorities and the informed public. Here is why.
1- The Statement asserts, “the press investigation which was made by the two Australian & American journals is only information that does not have any Investigative journalist working criteria, especially when it did not have any documents or papers Corroborates the allegations. Which makes it an in accurate press investigation and Free of credibility accusations.”
Apart from its apparent weak language, which I am copying as is, it seems the Ministry or its Public Relation & Press Office-PRPO did not read the long parts of the related article and it is not aware of the thousands emails upon which the article was premised. Email messages are considered, for the legal investigation and courts of law verdicts, powerful documents. It is also laughable for the Ministry’ PRPO to say the article “does not have any Investigative journalist working criteria” when it does not recognize email messages as significant evidence for investigative journalism;
2- By concluding that the article is “in accurate press investigation and Free of credibility accusations” (meaning inaccurate, not credible and accusing press investigation), the Statement shows no respect to national and international efforts to investigate the allegations of corruption and wrong doing that were uncovered by the article. In fact the Statement makes “conclusions” even before the investigations began!!
3- Also the Statement is contradictory and inconsistent. If the Ministry thinks that these are inaccurate and not credible accusation, why then the Ministry took many measures to address, “the concerned authorities in order to supply it with the documents which confirms these accusations. And the ministry did also address the supervisory and security authorities to let them know about the subject in order to make a high level coordination about it”;
4- But what the Statement says about Unaoil sub-contract is the most alarming and causes serious concerns. It says, “Regarding to (Unoil): it is the secondary contractor and their contracts was signed with the main contractor and the ministry of oil has no relation these assignments.”
This is in fact in response to what I mentioned in my email communication of 3 April 2016, which says “In addition to the corruption cases referred to in the reports, I suggest the Iraqi investigation should also include the sub-contract that was awarded to Unaoil for the rehabilitation of West Qurna oilfield Compressor Stations CS7 and CS8 in July 2015.”
What warries and alerts me is the following:
(i)- The Ministry did not specify the “the main contractor” who concluded the sub-contract deal with the allegedly corrupt company, Unaoil. Here there are three possibilities: Basrah Gas Company-BGC; West Qurna 1-WQ1 oilfield; or West Qurna 2-WQ2 oilfield.
(ii)- If the sub-contract is related to BGC, which Iraq holds 51% of the Joint Venture the then the Ministry of Oil, through South Gas Company-SGC and as a majority shareholder, is legally responsible for any financial irregularities, wrong doing or corruption relating to sub-contracting;
(iii)- If the sub-contract is related to either WQ1 or WQ2 then first; there is no such “main contractor” in the signed contracts for these oilfields; what is there is “Operator”. That could indicate PRPO have not read the contracts properly; second, the related Operator or the Joint Management Committee-JMC, or the South Oil Company-SOC or/and the Ministry of Oil is responsible for such sub-contract; depending on the value of the said sub-contract according to Article 9.19 (c) of the signed contracts for WQ2 and Article 9.20 (c) of the signed contracts for WQ1.
But, under both Articles the sub-contracting should be done under specific conditions and procedure, which makes the Ministry the ultimate guardian to protect the Iraqi interest against any infringement whatsoever.
(iv)- By stating the Unaoil “contracts was signed with the main contractor and the ministry of oil has no relation these assignments” is gross violation of the signed contracts and inadmissible waiver of the Ministry’s sovereign right and obligation; and this gives the impression that the “main contractor” / Operator can sub-contracts at will.
Article 43 on General Business Ethic of the WQ1 signed contracts permits the termination of the sub-contract on grounds of corruption; similar provisions are applicable also for WQ2 and also for BGC. If the allegations against Unaoil are proven in a court of law that would call for immediate termination of its sub-contract(s)
Finally, may I strongly remind the Ministry’ PRPO that these signed WQ1& 2 contracts are service contracts and the Ministry should be very keen to monitor and audit all cost including sub-contracts. Moreover, for corporate income tax purposes the sub-contractors are included under the tax related contractual provisions and Law.
I think the said Statement by or on behalf of the Ministry of Oil does disservice to the Ministry itself and, therefore, I suggest for the Ministry to withdrew such a statement; apologies for it; hold tight and strong leash on its PRPO to prevent such unworthy and damaging statement; and issue new, reasonable and responsible statement. No harm to start afresh.
Ahmed Mousa Jiyad,
Iraq/ Development Consultancy & Research,
Norway.
5 April 2016
Dear Sir,
It's very common that an official denies any wrongdoing! nothing new !
The current faces who rule Iraq have to retire and sit at home. The Iraqis have been demanding and demonstrating vigorously for the past two years. Dr Shahrestani and his peers have failed badly to manage the country. in fact they have casued substantial financial and other losses to the country. Why can't they admit this ?, and leave with dignity if they have any !!
Thank you
New statement from the Ministry of Oil.
MoO issues today 7 April the following statement in Arabic:
استنادا الى توجيهات الدكتور حيدر العبادي رئيس مجلس الوزراء عقد في وزارة النفط اجتماعين ضم الاول اللجنة التحقيقية المشكلة في هيئة النزاهة ومكتب المفتش العام والثاني ضم رئيس لجنة النزاهة مع اعضاء لجنتي النزاهة والنفط والطاقة النيابيتين والكادر المتقدم في الوزارة ومكتب المفتش العام وتم التاكيد في الاجتماعين على ما يلي .
1- تأكيدا لنهج وزارة النفط في التنسيق والتواصل مع جميع السلطات الرقابية والتدقيقية والتنفيذية للوصول الى الحقائق والادلة حول ما اثير من شبهات فساد تتعلق بعقد تصعيد الطاقات التصديرية وما نشرته وسائل الاعلام من معلومات تتعلق بذلك فقد تم عقد اجتماع يوم الثلاثاء 5/4/2016 في مكتب المفتش العام في الوزارة مع اللجنة التحقيقية المشكلة في هيئة النزاهة والمكونة من نائب رئيس هيئة النزاهة ومدير عام الدائرة القانونية ومدير عام دائرة التحقيقات للاطلاع والتداول بشأن الاوليات والاجراءات المتخذة من قبل وزارة النفط في كشف ملابسات الموضوع وما اثير حولها في وسائل الاعلام .
2- وفي نفس السياق عقد في مبنى وزارة النفط يوم الثلاثاء 5/4/2016اجتماعا مشتركا ضم رئيس لجنة النزاهة النيابية مع اعضاء لجنتي النزاهة والنفط والطاقة النيابيتين والكادر المتقدم في الوزارة ومكتب المفتش العام وتم مراجعة جميع التفاصيل المتعلقة بشبهات الفساد المثارة في وسائل الاعلام والاتفاق على استمرار اللقاءات وتبادل المعلومات للوصول الى الحقائق .
3- وقد بينت الوزارة في الاجتماعين انها سبق واتخذت الاجراءات الضرورية مع الجهات ذات العلاقة حال ورود المعلومات المنشورة والمتعلقة بشبهات الفساد ومنذ عام 2012 ومنها ايقاف التعامل مع الشركة مورد الشبهة ، وقد شكلت عدة لجان في حينها لمتابعة واستكمال الاجراءات بهدف الوصول الى الحقائق والادلة لتقديم المتورطين الى القضاء .
4- وفي ذات الوقت فأن الوزارة تدعو الجهات التي تمتلك معلومات او وثائق تتعلق بهذه الشبهات لتقديمها الى الوزارة واللجان المشكلة في مجلس النواب او هيئة النزاهة.
انتهى
وزارة النفط
Obviously, the current statement is more reasonable, responsible and factual; it refers to the two meetings with the Integrity Commission and Integrity Commission, which I mentioned in my last commentary on the previous statement by MoO dated 4 April. Also the new statement is empty from the shallow rhetoric that characterizes its previous statement.
But in item 3 of the new statement the Ministry mentions it had previously taken the necessary measures when it received such information alleging or concerning corruption cases.
In my view the Ministry should now provide full information on such cases; what measures were taken; what are the outcomes so far. It is honorable course of action to be proactive in disclosing fully all such cases.
Ahmed Mousa Jiyad,
Iraq/ Development Consultancy & Research,
Norway.
[email protected]
7 April 2016
Dear Mr. Ahmed,
In Iraq corruption is well documented for many cases that includes minsters, high public servants, politicians, academic and so on. However accountability is lacking without punishment every official has a room to get exposed to corruption.
Whether una oil has bribed Iraqi officials or not, nobody will be sentenced and no money will recover for the public benefit. I say it is a tragedy for Iraqis.
Raad zahid
Retired employee