Shafaq News/ Iraqi Prime Minister Mohammed Shia Al-Sudani has condemned the massive embezzlement of tax funds, known as the "Theft of the Century", calling it a "dark chapter" in Iraq's history.

During his visit to the Federal Integrity Commission (CoI) on Saturday, Al-Sudani revealed that the theft was conducted with official cover and that half of the stolen funds were smuggled abroad. He urged all officers and commanders to disclose their financial assets.

In a meeting at CoI, Al-Sudani emphasized the Commission's critical role in the government's anti-corruption agenda. He praised the staff's efforts, which have bolstered public hope for genuine action against financial and administrative corruption.

Al-Sudani detailed that the embezzlement, involving substantial sums and official collusion, resulted in the transfer of half the stolen funds out of the country. He assured that efforts are ongoing to recover these assets.

Highlighting a significant shift in the Commission's operations compared to the previous administration, Al-Sudani noted that current efforts are more professional and devoid of the political biases that previously plagued anti-corruption initiatives, such as those seen with Committee Order 29.

The Prime Minister stressed the need for swift action to address any misconduct within CoI, emphasizing that no employee should misuse their position, particularly those responsible for oversight. He maintains daily communication with the Commission's leadership to ensure constant monitoring and direction.

Al-Sudani has instructed all officers and commanders to submit financial disclosures and directed all departments to continue updating anti-bribery measures based on citizen feedback. He also mandated regular reports on ministry actions related to integrity and prompt responses to notifications received.

The Prime Minister announced the formation of special committees to investigate high-ranking officials and hold senior employees accountable for any proven financial misconduct. He also instructed the creation of investigative committees within ministries, governorates, and independent entities to address delays in handling notifications and lawsuits.

In the Theft of the Century, $2.5bn was allegedly spirited away from the country's tax authority between September 2021 and August 2022 through 247 cheques that were cashed by five companies.

The money was then withdrawn in cash from the accounts of these companies, most of whose owners are on the run.

The scandal broke days before premier Mohammed Shia Al-Sudani's government was sworn in and he has said his administration will prioritize fighting corruption, which has "so brazenly spread through the joints of the state and its institutions."

He has begun publicly purging acolytes of the former prime minister Mustafa al-Kadhimi.

Corruption in Iraq is endemic and has corroded state institutions, sanctioned by a political class that has governed the country since former president Saddam Hussein was toppled in 2003.

The ethno-sectarian arrangement intended to foster power-sharing has instead entrenched a system of horse-trading between factions competing for top government jobs and sources of patronage within ministries.

In a public letter after the embezzlement was revealed, ex-finance minister Ali Allawi said that he had alerted al-Kadhimi's office about the scheme in November 2021 and ordered payments to be halted from the accounts without his approval, but the payments continued.

A former senior adviser to al-Kadhimi said the premier’s office had not seen "official correspondence" from Allawi about the fraud.

The companies claimed to be acting on behalf of bigger firms, including several international oil companies, according to the ministry.

Three of the companies were founded in the month before the scheme began, four people with knowledge of the investigation said.

In total, the ministry said $2.5 billion were withdrawn from the accounts at Rafidain Bank— or around 2.81% of the country’s 2021 budget.

Some of the cash was then used to buy US currency through the daily "dollar auction" — a process in which the Central Bank provides dollars to a commercial bank in exchange for Iraqi dinars.