‘Heist of century’: ex-Iraq finance minister says ‘no evidence’ links him to tax fraud   

ERBIL (Kurdistan 24) – Former Iraqi Minister of Finance and Deputy Prime Minister Ali A. Allawi has denied his involvement in the country’s tax fraud scheme, in which $2.5bn was stolen in less than a year, The National reported.

Allawi’s remarks to the UAE-based newspaper came after Iraq recently made a red notice request at Interpol to extradite the former minister, along with other ex-high-ranking officials that currently reside outside Iraq, over their alleged involvement in the tax authority fraud.

“I want to say that, as it relates to me, there is no evidence that links me to the case or taking money from the heist. And I believe there is no evidence that I mismanaged my post, or that I was grossly negligent,” the former minister told the UAE-based The National.

Allawi described the accusations as “shocking,” expressing his readiness to cooperate with authorities who wish to investigate in the matter.

“I am prepared to open whatever bank accounts they want from me and from my family …to be accused of these things is shocking,” he told The National.

The significant sum was stolen through the issuance of 250 cheques between Sept. 2021 and Aug. 2022 for five shell companies. 

The ex-Iraqi Prime Minister Mustafa al-Kadhimi’s government last year arrested Noor Zuhair Jasim, a businessman, who is believed to be the main suspect. He was later released on bail by the current Iraqi government led by Prime Minister Mohammed Shia’ al-Sudani to retrieve the stolen funds.

Iraq has so far recovered around $125 million of the sum, which is suspected to have been mainly laundered in real estate acquisitions.

The Iraqi government has frozen the assets of Mr. Allawi and a number of other officials from Kadhimi’s government, accusing them to have facilitated the embezzlement.  

“I was the number two man in the Kadhimi government. For whatever reason, I don't think that they would want to, but I don't think they can issue charges against Mustafa so I'm the second best,” Allawi, who resigned from his post in Aug. 2022, said.

The former minister, currently residing in London, previously served as defense, trade, and finance minister in the successive governments following 2003.

Iraq is ranked 157 out of 180 countries on the Transparency International Corruption Perceptions Index in 2021.

Between $50-$300 billion has been lost to corruption in Iraq since the country’s long-time dictator, Saddam Hussein, was toppled in 2003 by a US-led coalition.