The head of Iraq's Commission of Integrity, the country's official anti-corruption body, submitted his resignation on Sunday as a wave of scandals rock the country.
Prime Minister Mohammed Shia Al Sudani quickly accepted the resignation and picked judge Haider Hanoon Zayer as his replacement.
Judge Alaa Al Saadi didn’t give the reasons for his decision to step down, but alluded to pressure from political parties.
“Giving up this post is a relief to the one in charge and an emancipation from the heavy and perilous responsibilities that cause problems with different parties inside the executive authority or the blocs which support their members inside the legislative authority,” Mr Al Saadi said.
He said that he faced a smear campaign from “media arms linked to the influential parties that have sought to manipulate public opinion against all serious efforts to fight corruption and to protect public funds”.
The latest development came as authorities investigate a number of major corruption scandals involving the theft of billions of dollars.
Last month, a former minister revealed that 3.7 trillion Iraqi dinars (almost $2.5 billion) was embezzled from the tax authority in what is being described locally as “the theft of the century”.
A few weeks later, the National Security Service announced the arrest of a criminal network that siphoned crude oil from pipelines in remote areas of southern Iraq and smuggled it out of the county. Senior interior ministry and intelligence officers were allegedly involved.
Mr Al Sudani, who took over late last month, has said corruption is the main threat to the country.
“Corruption is a serious threat to the Iraqi state, more dangerous than all other threats that have weighed on Iraq”, he said in a press conference early this month.
He vowed to tackle the problem. “The citizens want to feel that there is a sense of responsibility and that looted money is returned,” he said.
Speaking at the annual Middle East Research Institute Forum in Erbil last month, the UN Special Representative for Iraq Jeanine Hennis-Plasschaert described the corruption as “pervasive, structural and systemic”.
Ms Hennis-Plasschaert blamed the informal power-sharing arrangement — called Muhasasa in Arabic — that was established after the overthrow of dictator Saddam Hussein in the 2003 US-led invasion.
Under the arrangement, which has been the basis for all subsequent Iraqi governments, Shiites are entitled to 12 ministries, Sunnis six, Kurds four and the rest distributed among other religious and ethnic groups, regardless of election results.
“That arrangement turned into a quite closed community, a community of collusion and a community of corruption protection,” Ms Hennis-Plasschaert said.
Mr Al Saadi is not the first to resign from his post due to pressure from political parties.
In August, Ali Allawi resigned as finance minister in protest against what he called widespread corruption and the influence of political parties over the country’s revenue.
Iraq is considered one of the most corrupt countries in the world, ranking 157 out of 180 in Transparency International's corruption perceptions index.
Widespread corruption has crippled the country’s efforts to recover from decades of war and UN-imposed economic sanctions, eating into ministry funds that are desperately needed for vital services such as electricity and water.
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The%20specs
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COMPANY%20PROFILE
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How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
COMPANY%20PROFILE
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Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A
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French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
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