BAGHDAD, 26 Nov. - (ANA) - The Iraqi government is under scrutiny following allegations by the labour minister that 2.5 trillion dinars (approximately $1.9 billion) are missing from the Social Welfare Fund. State institutions have denied these allegations, and an official investigation is underway.

 

Ahmed al-Asadi, Minister of Labour and Social Affairs, intensified political tensions by alleging in a recent television interview that 2.5 trillion dinars from the Social Welfare Fund had disappeared. This allegation has exacerbated divisions among state institutions and prompted an urgent investigation by the Integrity Commission.

 

A member of the Iraqi parliament's Integrity Committee declined to comment when contacted by The New Arab, stating that remarks would be withheld until the judiciary resolves the matter.

 

Al-Asadi, an ally of Prime Minister Mohammed Shia al-Sudani, stated that his ministry neither authorised nor was informed of any withdrawal, characterising the funds as "missing". His remarks were made following parliamentary elections, during the government's caretaker period. He further suggested that the Ministry of Finance may have withdrawn funds to pay public sector wages due to unacknowledged cash shortages.

 

Al-Rafidain Bank, the state-owned institution accused of facilitating the withdrawal, rejected the minister’s claims. The bank described the comments as "inaccurate" and asserted that the funds remain in a separate, centrally managed account for the Social Protection Network.

 

The Ministry of Finance also denied any withdrawals, stating that the account was frozen due to detected irregularities. The ministry noted that certain deposits, including smart-card refunds since 2015, were made "contrary to the nature of the account".

 

Joint audits conducted with the Federal Board of Supreme Audit determined that the account had been used inconsistently with its intended purpose. However, the Ministry of Finance emphasised that all funds remain present.

 

 

 

 

Amid ongoing uncertainty, Iraq's Federal Integrity Commission issued a statement on Tuesday outlining its inquiry. Investigators reviewed financial records and correspondence among the Ministry of Finance, the Ministry of Labour, al-Rafidain Bank, and the Federal Board of Audit and Supervision.

 

The investigation determined "clearly and conclusively" that the nearly $1.9 billion remains untouched. According to the commission, the funds are still held in account number 568, managed by the Social Protection Authority.

 

The commission stated that the account is now subject to stricter controls to separate Ministry of Finance funds from those raised by the Ministry of Labour, in accordance with Iraq's Social Protection Law of 2014, and that the judiciary supervised all procedures.

 

The commission acknowledged media efforts to promote transparency but cautioned against exaggeration or unverified claims, warning that such actions could undermine Iraq's financial reputation and stability.

 

The dispute has generated public criticism, with some observers drawing comparisons to Iraq's "Theft of the Century" in 2022, when over $2 billion was stolen from tax deposits.

 

On social media, Iraqi writer and journalist Falah al-Mashal stated, "The answers about the Social Welfare Fund's money have been many and contradictory, and its fate is not clear. It would not be surprising if the funds had disappeared due to the actions of someone like Noor Zuhair. In Iraq today, you can steal public money and live in luxury—all you have to do is promise to pay back 5%."

 

Economists and lawmakers warn that a severe cash shortage could have significant consequences, citing Iraq's reliance on imports and the ongoing smuggling of dinars and US dollars to neighbouring countries. Some suggest that the next government may need to devalue the Iraqi dinar to address the crisis.

 

However, Iraq’s Central Bank denied these reports, stating that it has no plans to devalue the currency.

 

When asked about the causes of Iraq's cash shortages, economic expert Ziad al-Hashimi explained to The New Arab, "It is because Iraq relies on petrodollars for almost 90% of its spending, while also keeping government spending high despite falling oil prices. This has created a deficit in public finances."

 

In November 2022, Prime Minister Mohammed Shia' al-Sudani stated that Zuhair had admitted to embezzling more than $1.1 billion and would be released on bail to repay the remaining funds within two weeks. The government reported recovering a portion of the funds, but the majority remain unaccounted for.

 

Zuhair left Iraq and is now considered a fugitive after missing court hearings in August 2024. In November, a Baghdad court sentenced him in absentia to 10 years in prison, identifying him as the mastermind behind the scheme.

 

In August 2024, Lebanese media reported that Zuhair was involved in a serious car crash in Beirut, days before a scheduled hearing. Some Iraqi officials and journalists suggested that the incident may have been fabricated to delay legal proceedings. He is now believed to be in the United Arab Emirates, following a brief stay in Lebanon.

 

Before his conviction, Zuhair appeared on television to deny the accusations, asserting that the money was legitimate private income rather than state funds. He also threatened to name politicians and media figures whom he claimed were involved in blackmail or a broader corruption network if granted a public trial.   - (ANA) -

 

AB/ANA/26 November 2025 - - -