Iraq's judiciary has taken a new step in combating corruption crimes that plunder public resources. The Supreme Judicial Council put into effect a mechanism that will provide sentence reductions for defendants who voluntarily return embezzled funds to the state.
According to the Council's statement, this practice will first be implemented in the tax trusts case publicly known as the 'theft of the century'. Then it will be expanded to other major corruption cases involving lawmakers and senior officials.
$2.9 billion heist from tax trusts
The statement noted that foreign companies' tax trusts were illegally withdrawn through intermediary companies 'Al-Qant' and 'Al-Mubdiun' belonging to convict Nur Zuheyr, in cooperation with public officials. It was reported that the total amount withdrawn from Rafidain Bank reached 3.8 trillion Iraqi dinars, approximately $2.9 billion.
Main suspect fled, sentenced in absentia
The Council announced that main suspect Nur Zuheyr had been released on bail in exchange for paying his debt, with the agreement between Supreme Judicial Council President Faiq Zidan and former Prime Minister Mustafa Al-Kadhimi and the approval of the investigating judge. It was stated that Zuheyr returned 365 billion dinars of the 1.6 trillion dinars for which his companies were responsible, but then payments stopped after he fled abroad. Consequently, the Central Anti-Corruption Criminal Court sentenced Zuheyr to 10 years in prison in absentia, and international prosecution was initiated through Interpol.
Amnesty request pending Finance Ministry response
It was reported that Nur Zuheyr's lawyer applied for his client to benefit from the new amnesty law amendment, provided the remaining debt is paid. It was emphasized that the judiciary asked the Ministry of Finance, as the injured party, for its opinion, but since no response has been received, the amnesty decision is suspended.
12 officials imprisoned, former officials arrested in absentia
It was announced that within the same case, prison sentences were handed down in person to 12 tax department employees and individuals who facilitated the withdrawal of funds using their ties to the former finance minister, and their movable and immovable assets in Iraq and Kuwait were seized. It was reported that in absentia convictions and international arrest warrants were issued for the former prime minister's office director and some advisors living abroad.
It was stated that an investigation was conducted regarding former Prime Minister Mustafa Al-Kadhimi in connection with this crime committed during his term, but since sufficient evidence was not found, the investigation was officially closed. It was noted that the convicted officials and advisors could benefit from the amnesty law if they pay the compensation to be determined by the Ministry of Finance.
Mechanism to be applied in oil sector case as well
The Supreme Judicial Council announced that the same mechanism would also apply in the 'North Refineries Company' case, in which detained Deputy Oil Minister Adnan Al-Jumaili and some current lawmakers are defendants. It was stated that a sentence reduction would be applied provided the crime was committed before the amnesty law amendment and the damage is fully compensated; otherwise, they will face aggravated sentences.
At the end of the statement, it was emphasized that continuous coordination is underway with the current Prime Minister to create a unified legal roadmap for the collection of state receivables and sentence reduction for voluntary restitution.
