Iraq’s bank withdrawals under previous government face scrutiny

Shafaq News- Baghdad

Trillions of Iraqi dinars were withdrawn from state-owned banks during the previous government under former prime minister Mohammed Shia al-Sudani to help finance public-sector salaries amid a fiscal crisis, but the scale and legal basis of the transactions require official scrutiny, a source familiar with the matter told Shafaq News on Saturday.

The withdrawals “exceeded the legal limits” applicable to individual state banks and were made from bank reserves and balances during a period of financial strain to pay government employees.

Read more: Iraq turns to bank borrowing to cover salaries

The source alleged that using bank reserves to finance government spending without formal approvals would violate Iraqi financial regulations and called for a comprehensive financial and legal audit to determine the amounts withdrawn, the legal basis for the transactions, and any administrative or legal responsibility.

Separately, former lawmaker Amir al-Mamouri said in televised remarks that about 118 trillion Iraqi dinars (≈ $90.8B) had been withdrawn from government institutions for projects or other activities without supporting documentation required to complete financial settlements.

No official investigation or audit findings have been released regarding the alleged withdrawals, and the previous government has not publicly responded to the allegations.