Iraq corruption operation: 21 detained, economic cost hits $1 trillion

The Iraqi government detained 21 people, including senior officials, as part of its anti-corruption efforts. Experts say the economic cost of corruption in the country has exceeded $1 trillion.

Scraper SystemJuly 03, 2026, 10:51 AM

Iraq corruption operation: 21 detained, economic cost hits $1 trillion

In operations carried out as part of the fight against corruption in Iraq, 21 officials, including lawmakers and senior bureaucrats, were detained. The government announced that efforts to apprehend other suspects are ongoing.

Prime Minister Ali al-Zaydi, in a speech at the Cabinet meeting, stressed that the government is determined to fight corruption and recover public assets. "There are strong guardians of public resources," al-Zaydi said, pointing to oversight and judicial institutions.

Trillion-dollar cost

Economist Abdurrahman al-Mashhadani, in an assessment to Al Jazeera, said the economic cost of financial and political corruption in Iraq has exceeded $1 trillion. Noting that most of the stolen money flows to economies abroad, al-Mashhadani recalled that a previous study he prepared estimated the amount smuggled abroad at $600 billion, while the government put the figure at $350 billion and former President Barham Salih at $150 billion.

Al-Mashhadani stated that after 2018, corruption spread in an unprecedented manner, and the bribe paid to secure some ministerial posts rose from $5 million to $50-100 million. He stressed that this increase shows the stolen money has multiplied.

Development collapses, services halt

Al-Mashhadani noted that the consequences of corruption are not limited to financial loss, saying that since 2005 the country has had a shortage of about 9,000 schools, and in the health sector only one or two new hospitals have been built since the 1980s. He added that the $1-2 billion seized in current investigations would be enough to build 10 strategic factories and provide employment for 5,000 to 10,000 people.

Financial and banking expert Mustafa Akram Hantoush also said that the cost of corruption is not limited to stolen money, but leads to the decline of public services, deprives new generations of job opportunities, and weakens state institutions. "Corruption has caused severe damage under three main headings: the depletion of public resources, the squandering of development opportunities, and the threatening of future generations," Hantoush said.

New steps from the government

The Iraqi government ordered the opening of a special account at the Ministry of Finance for the recovery of proceeds from corruption. The Recovery Department of the Integrity Commission announced that large amounts of assets abroad have been frozen and suspects are prevented from using them. The commission reported that lawsuits have been filed in coordination with the Ministry of Justice to recover these funds.

Journalist Mustafa Jalil, however, said that recovering stolen money alone is not enough, and that institutional, legal, and oversight reforms are essential to prevent corruption. "With the looted resources, a prosperous country, even two countries, could have been built," Jalil said.

The operation comes at a time when Iraq is almost entirely dependent on oil revenues, the budget has not been approved, unemployment is high, and massive investments are needed in education, health, and infrastructure. Eyes are on the outcome of the judicial process and whether the campaign can ease the economic bill that has accumulated since 2003.

Iraq corruption operation: 21 detained, economic cost hits $1 trillion

The Iraqi government detained 21 people, including senior officials, as part of its anti-corruption efforts. Experts say the economic cost of corruption in the country has exceeded $1 trillion.