Iraqi Ministry responds to audit report on energy contracts

Shafqq News / The Iraqi Ministry of Electricity issued a clarifying statement in response to a report from the Federal Audit Bureau, as well as media coverage regarding alleged financial mismanagement and investment contracts pertaining to energy procurement.

The ministry's statement today indicated that the report from the bureau pertained to power purchase agreements signed with investment companies under the "Tuke or buy" mechanism.

Elaborating further, the ministry clarified that these investment contracts were inked in the years 2014, 2015, and 2016, under the purview of governmental decisions from preceding administrations and with the endorsement of the Ministerial Energy Council at the time.

According to the statement, the current government, upon directives from Prime Minister Mohammed Shia Al-Sudani, has embarked on a comprehensive review of these contracts. This process involves the formation of a ministerial committee, led by Minister of Electricity Ziyad Ali Fadel, and comprising advisors and sector-specific entities. The committee is tasked with revisiting these previously concluded contracts and formulating recommendations that align with the state's interests and the preservation of public funds. The statement noted that the committee has convened several meetings to deliberate and develop appropriate recommendations.

The statement quoted the Minister of Electricity affirming that the ministry operates with transparency and clarity. All avenues of the ministry and its departments are open to oversight by regulatory, parliamentary, and judicial bodies for the review of both past and present contracts. The ministry expressed its support for the efforts of these entities in monitoring governmental performance and safeguarding public funds.