Iraq Arrests Automobile Company Chief in Corruption Probe

ERBIL (Kurdistan24) - Iraqi authorities have arrested Hashim Al-Sudani, Director General of the General Automobile and Machinery Trading Company, over alleged corruption involving Ministry of Defense procurement contracts, according to a security source who spoke to Kurdistan24 and an informed source cited by the Iraqi News Agency (INA).

Al-Sudani was arrested in Baghdad by a specialized security force and is undergoing interrogation, according to the security source.

Investigators are examining several contracts involving machinery and vehicles for the Defense Ministry, amid allegations that substantial portions of the allocated funds were disbursed while the delivery or acquisition of the contracted equipment could not be verified.

The source said Al-Sudani had been responsible for documentation and oversight related to the contracts. INA separately reported, citing an informed source, that he was being questioned over what it described as allegedly fraudulent contracts.

The allegations have not been established in court, and Al-Sudani has not been reported as having publicly commented on the case.

Trade official arrested over contracts

The case has drawn particular attention because of Al-Sudani's unusual administrative history.

According to the supplied information, the then-minister of Trade issued a decree in November 2022 terminating Al-Sudani's tenure as director general and appointing a successor. 

Despite the order, however, Al-Sudani reportedly remained in the position and continued exercising executive responsibilities, including presiding over meetings of the company's board.

The circumstances raise questions about the administrative authority under which he continued performing those duties, although the supplied reports do not establish whether his continued role itself forms part of the corruption investigation.

Al-Sudani, born in Baghdad in 1966, holds a bachelor's degree in electrical engineering and spent much of his career in senior positions within the Ministry of Trade. 

He previously served as a director general at the Ministry of Education and held senior administrative and financial posts within the Trade Ministry.

His arrest comes as Iraqi authorities pursue a broader campaign against alleged corruption in state institutions.

Operation Dawn widens its reach

The investigation is taking place within Operation Dawn, an anti-corruption campaign launched by Prime Minister Ali Zaidi in late June 2026, according to the supplied reports.

The campaign has focused on alleged graft and the recovery of state assets.

Reports provided to Kurdistan24 say that dozens of senior officials and members of parliament have been arrested since its launch, while cash, gold and other assets have been recovered.

The Eco Iraq Observatory reported on Sunday that approximately 390 billion Iraqi dinars, $141 million and 500 kilograms of gold had been returned to the national treasury.

The figures come from Eco Iraq and have not been independently verified by Kurdistan24.

The Observatory also calculated that the recovered gold, valued at about 185,000 dinars per gram, would bring the combined value of the recovered assets to roughly 482 billion dinars.

Eco Iraq compared that amount with government spending, saying it would be equivalent to the monthly budget of the Ministry of Foreign Affairs and roughly half of the Kurdistan Region's monthly civil-servant payroll.

The financial figures illustrate the scale of the asset-recovery component of Operation Dawn, but the Al-Sudani case remains focused on specific procurement contracts and allegations concerning their implementation.

Nearly 390 billion dinars recovered

The reported recovery of state assets has become a central feature of the government's presentation of Operation Dawn.

Eco Iraq has called for transparency over the recovered funds and assets, including information on their return to the treasury and subsequent handling.

Its figures cover cash, foreign currency and gold rather than representing a government audit independently confirmed in the material supplied for this report.

For the authorities, the recovery of public assets is proceeding alongside criminal investigations into officials suspected of exploiting their positions. Each case, however, remains subject to its own investigation and judicial process.

The reported sums should therefore not be interpreted as evidence of wrongdoing by every official arrested under the campaign.

Former minister also faces arrest warrant

The anti-corruption drive has also reached former cabinet officials.

On Sunday, the Baghdad/Karkh Federal Appeals Court issued an arrest and search warrant for former Labor and Social Affairs Minister Ahmed Jassim Sabir Al-Asadi, according to the court document supplied in the source material.

The document accuses Al-Asadi of obtaining personal benefit from contracts and projects that fell under his authority while serving as minister. It also alleges that he facilitated contracts intended to benefit himself and others.

The court issued the warrant under Article 319 of Iraq's amended Penal Code No. 111 of 1969, which concerns public officials who exploit their positions for personal benefit.

The warrant is an investigative and judicial measure and does not constitute a conviction.

The Al-Asadi case has not been presented in the supplied material as legally connected to the investigation involving Al-Sudani. Rather, both cases illustrate the range of senior officials being subjected to judicial action as Baghdad pursues Operation Dawn.

For Al-Sudani, the immediate issue is the investigation into alleged Defense Ministry procurement irregularities and the circumstances surrounding his continued exercise of authority after his reported dismissal in 2022.

The broader campaign will ultimately be judged not only by the number of arrests and the value of assets recovered, but by whether those investigations establish individual responsibility through due legal process and lead to lasting institutional accountability.