ISTANBUL / Leith Al-Junaidy / Anadolu Agency

The Supreme Judicial Council in Iraq announced on Friday the adoption of a new mechanism that allows for reduced penalties for those involved in financial and administrative corruption cases, in exchange for voluntarily returning embezzled funds to the state.

The council explained in a statement that this mechanism will be applied in the case known in the media as the 'Theft of the Century,' and will be extended to other major corruption files involving deputies and officials.

Days earlier, Iraqi authorities announced the arrest of dozens of suspects in major financial and administrative corruption cases, including deputies and officials whose legal immunity was lifted.

These developments came based on confessions related to the case of suspended Deputy Oil Minister Adnan Al-Jumaili, who was dismissed on June 2 last year, on suspicion of squandering public funds and signing illegal contracts.

** 'Theft of the Century'

In clarification regarding the 'tax deposits' case, the Supreme Judicial Council stated in its statement that the embezzlement operations were carried out through intermediary companies, most notably 'Al-Qanat' and 'Al-Mubdi'un' belonging to the convicted Noor Zuhair.

The statement added that the tax deposits deposited by foreign companies with the General Authority for Taxes were withdrawn illegally, in collusion with employees.

It pointed out that the total amount withdrawn from Al-Rafidain Bank reached 3.8 trillion Iraqi dinars (about $2.9 billion).

The council revealed that an earlier agreement was reached between the head of the Supreme Judicial Council (Faiq Zaidan) and former Prime Minister (Mustafa Al-Kadhimi), with the approval of the investigating judge, to release the main defendant Noor Zuhair on bail in exchange for paying the amounts owed by him, allowing for a reduced sentence.

He noted that Zuhair had already returned 365 billion dinars (about $278 million) out of 1.6 trillion dinars that fell under the responsibility of his two companies.

He stated that the repayment process stopped after the defendant fled the country, prompting the Central Anti-Corruption Criminal Court to issue a 10-year prison sentence in absentia, with the activation of his international pursuit via the International Criminal Police Organization (Interpol).

** Request for 'Amnesty'

The statement clarified that Noor Zuhair's lawyer submitted a request to include his client under the new amendment to the amnesty law in exchange for completing the payment of the remaining amounts.

He affirmed that the judiciary contacted the Ministry of Finance (the affected party) to obtain the minister's opinion, and due to the lack of any response so far, the decision to include him in the amnesty remains 'pending.'

In terms of rulings and prosecutions related to the same case, the Iraqi judiciary announced the issuance of in-person prison sentences for 12 employees of the Tax Authority, and other individuals who exploited their connections with the former finance minister to facilitate withdrawals, along with confiscation of their movable and immovable assets in Iraq and Kuwait.

Likewise, absentee judgments and international arrest warrants were issued against the office director of the previous prime minister and a number of advisors residing abroad.

The statement confirmed that former Prime Minister Mustafa Al-Kadhimi was investigated regarding the crime that occurred during his government's tenure, and the investigation against him was officially closed due to insufficient evidence.

It noted the possibility of including the convicted employees and advisors under the amnesty law, provided they pay the amount of financial compensation determined by the Ministry of Finance.

The details of the case, classified as one of the largest financial corruption cases in the country's history and known in the media as the 'Theft of the Century,' date back to the fall of 2022.

The Ministry of Finance and the Federal Integrity Commission revealed at the time the disappearance of approximately 3.8 trillion Iraqi dinars (about $2.5 billion at that time) from the tax deposits account of the General Authority for Taxes at the state-owned Rafidain Bank.

Investigations stated that the seizure of these funds occurred between September 2021 and August 2022, through the organization of bank drafts issued in favor of shell companies and local intermediary firms.

This was done in collusion with a wide network that included employees of various ranks, advisors in the previous government, and legislators, causing widespread shock both locally and internationally.

** North Refineries Case

In a related context, the Supreme Judicial Council announced that anti-corruption courts will adopt the same mechanism in the case of the 'North Refineries Company,' in which the detained Adnan Al-Jumaili and a number of current members of parliament are accused.

It said they will be included for reduced penalties or measures if their crimes were committed before the enforcement of the amnesty law amendment and they have fully repaid the funds to the affected ministry.

If the crime was committed after the enforcement of the amnesty law, the defendants will be dealt with under strict procedures as they are not covered by the law.

The judiciary concluded its statement by noting ongoing coordination with the current prime minister to develop a unified legal roadmap that ensures the recovery of state funds in exchange for reduced sentences for those who voluntarily return them.