Iraq’s prime minister-designate Mohammed Shia Al Sudani vowed on Sunday to act against corruption after authorities announced nearly $2.5 billion was embezzled from the account of a government agency.
The Iraqi Integrity Commission announced it was opening an investigation into the theft of 3.7 trillion dinars, while confirming that the case is currently before the judiciary.
The amount was stolen from the General Tax Authority's trust account held by a branch of the Rafidain Bank, according to the Iraqi finance ministry.
“We will never hesitate to take real measures to curb the corruption that has so brazenly spread in the joints of the state and its institutions,” Mr Al Sudani tweeted on Sunday.
“We have put this file in the first priority of our programme, and we will not allow the money of the Iraqis to be stolen, as has happened with the funds of the General Authority for Taxes in the Rafidain Bank.”
Snap elections were held last year following nationwide protests that erupted in October 2019 to decry endemic corruption, decaying infrastructure and the absence of services and jobs for youth.
On Thursday, Iraq’s parliament finally elected Abdul Latif Rashid as the country’s new president, who then tasked Mr Al Sudani to form a new government to end a year of political gridlock.
Mr Al Sudani faces a challenge in the coming weeks to appoint a new cabinet of ministers after the Iraqi political bloc led by influential Shiite cleric Moqtada Al Sadr said on Saturday that it would not join the new government.
Mr Al Sudani, a former minister, has the backing of Mr Al Sadr's Iran-backed rivals, the Co-ordination Framework, which controls 138 out of 329 seats in the Iraqi legislature.
Meanwhile, Iraq's outgoing Prime Minister Mustafa Al Kadhimi appointed Hayam Nemat as acting finance minister after accepting the resignation of Ihsan Abdul Jabbar, the state news agency said on Saturday. Mr Jabbar remains Oil Minister.
In mid-August, Mr Al Kadhimi assigned the Finance Ministry to Mr Albdul Jabbar after the resignation of Ali Allawi, who stepped down in protest against what he called widespread corruption and the influence of political parties over the country’s revenue.
Last week, Parliament voted to remove Mr Abdul Jabbar over "mismanagement" and for allegedly failing to send financial statements to parliament.
Mr Nemat will now fill the position until a new government is formed.
A $2.5 billion fraud
The embezzlement Mr Al Sudani spoke of is just one of a number of major corruption-related scandals in the war-torn country. It was revealed late on Saturday by Mr Abdul Jabbar.
He used his resignation letter from the role of acting finance minister to share the results of the investigation. More documents related to the investigation were leaked to media on Saturday.
The investigation found that 3.7 trillion Iraqi Dinar (slightly over $US2.5 billion) was fraudulently paid to five companies by the General Commission of Taxes.
The money was paid to the companies through 247 cheques between September 9, 2021, and August 11 this year from the General Commission of Taxes account at the State-run Rafidain Bank.
At least three of the companies were established in July last year, according to registration documents included in the leak.
Trading companies and individuals who have dealings with the government have to deposit a specific amount of money as a performance guarantee, from which later the taxes will be deducted.
Afterwards, the companies and individuals can apply to withdraw what is left from their deposits.
“These amounts have been stolen by the companies through the cheques issued by the General Commission of Taxes instead of going to the real beneficiaries,” the investigation concludes.
The owners of the companies in question and how they escaped scrutiny is still unknown, nor whether they are linked to any political parties or politicians.
“This economic crime is an extension of smaller irregularities that are widespread in the Finance Ministry’s departments and are continuing,” Mr Abdul Jabbar said in his resignation letter.
“This is one of the reasons behind the collapse of the Iraqi economy and the loss of the biggest chunk of the state revenues by experienced groups,” he added.
He said one of the reasons behind his removal as acting finance minister was this case, accusing those behind the scheme of a campaign against him which resulted in his forced resignation. He didn’t divulge more details.
Corruption has been rife in Iraq since the 2003 US-led invasion that toppled Saddam Hussein. Many politicians have been arrested or removed from office for the practice.
Iraq is considered one of the most corrupt countries in the world. It ranked 157th out of 180 nations on Transparency International’s 2021 corruption index.
The endemic corrupting was among the key motives behind 2019 pro-reform protests that engulfed major cities in central and southern Iraq.
The months-long protests forced the previous government to resign and early elections to take place.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
The Kites
Romain Gary
Penguin Modern Classics
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
RESULT
Arsenal 0 Chelsea 3
Chelsea: Willian (40'), Batshuayi (42', 49')
Race card for Super Saturday
4pm: Al Bastakiya Listed US$250,000 (Dh918,125) (Dirt) 1,900m.
4.35pm: Mahab Al Shimaal Group 3 $200,000 (D) 1,200m.
5.10pm: Nad Al Sheba Conditions $200,000 (Turf) 1,200m.
5.45pm: Burj Nahaar Group 3 $200,000 (D) 1,600m.
6.20pm: Jebel Hatta Group 1 $300,000 (T) 1,800m.
6.55pm: Al Maktoum Challenge Round 3 Group 1 $400,000 (D) 2,000m.
7.30pm: Dubai City of Gold Group 2 $250,000 (T) 2,410m.
TWISTERS
Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
Rating: 2.5/5
The%20specs
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
The%20specs
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Profile
Company: Libra Project
Based: Masdar City, ADGM, London and Delaware
Launch year: 2017
Size: A team of 12 with six employed full-time
Sector: Renewable energy
Funding: $500,000 in Series A funding from family and friends in 2018. A Series B round looking to raise $1.5m is now live.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
