Iraqi Prime Minister Ali Al Zaidi on Saturday ordered the creation of a high-level body to tighten control over government spending and reduce financial waste.
During a meeting with senior officials, Mr Al Zaidi announced the establishment of the Supreme Sovereign Council for Integrity, Oversight, and Recovery of Public Funds, said a statement from his office.
The meeting was attended by the president of the Federal Board of Supreme Audit, the head of the Federal Integrity Commission, the Public Prosecutor, and the chief judge of the Karkh Investigation Court specialising in corruption cases.
Mr Al Zaidi directed the council to be established under his chairmanship, with the heads of the Board of Supreme Audit and the Integrity Commission serving as members, the statement added.
The council’s mandate is to monitor ministries, non-ministerial bodies, and governorates on matters of “significant public impact”, with the goal of reducing public money waste and recovering state funds, it said.
All findings will be referred to the judiciary for prosecution, it added.
Mr Al Zaidi, a 41-year-old businessman, was selected last month as a compromise candidate. He has no political track record and did not take part in November's national elections. Instead, his public profile is built on a business empire that has thrived on lucrative government contracts.
Among his government priorities is tackling corruption in a country ranked 136 out of 181 in Transparency International's corruption perceptions index in 2025.
Corruption has been rife in Iraq under successive governments elected after the US-led invasion of 2003, which toppled the dictator Saddam Hussein. Billions of dollars given to the government for reconstruction were misused by authorities.
The widespread corruption has crippled the country’s efforts to overcome the effects of war and UN-imposed economic sanctions. In 2021, former president Barham Salih estimated that Iraq had lost $150 billion to embezzlement since 2003.
In October 2022, Iraq’s acting finance minister Ihsan Abdul Jabbar announced an investigation into billions of dollars of alleged thefts from the General Commission for Taxes, a department in the Ministry of Finance – the “robbery of century” in which at least $2.5 billion was allegedly embezzled from government funds.
The PM also instructed that economic feasibility checks be made mandatory for projects, and that specialised subcommittees be formed to audit government contracts to ensure compliance with existing laws and regulations.
The meeting further discussed forming a central committee composed of the Board of Supreme Audit, the Integrity Commission, and the Ministry of Finance. The committee will be responsible for developing a mechanism to audit and investigate government contracts before they are signed, verifying that they align with approved budget allocations.
Iraq’s anti-corruption drive drew renewed attention following an announcement last week of large-scale attempted embezzlement. The Integrity Commission announced it had thwarted a scheme to embezzle nearly 1.5 trillion dinars from two state banks in Baghdad.
The establishment of a high-level body directly overseen by the Prime Minister reflects growing pressure from both domestic public opinion and international partners to improve transparency and financial accountability.
The new council signals the government’s intent to shift from reactive investigations to pre-emptive action.
