Iraq shifts anti-corruption drive to pre-emptive contract scrutiny
BAGHDAD – Iraq has ordered government contracts to undergo mandatory scrutiny before they are signed in a significant shift in its anti-corruption strategy, as Prime Minister Ali al-Zaidi seeks to prevent fraud before public funds are spent rather than investigate wrongdoing after it occurs.
The directive, issued during Zaidi’s visit on Tuesday to the Federal Board of Supreme Audit, marks the government’s latest effort to tighten oversight of public spending by embedding what officials describe as a system of “preventive oversight” into Iraq’s procurement process.
Chairing a joint meeting with the head of the Federal Board of Supreme Audit, the chairman of the Federal Integrity Commission and the finance minister, Zaidi said Iraq’s oversight institutions should play a proactive role in identifying legal and financial weaknesses before they evolve into corruption cases or waste public money.
He instructed the audit board to establish a specialised team that would examine designated government contracts before they are signed, with reviews to be completed within 10 working days. The board will also determine the financial thresholds and categories of contracts subject to the new procedure in an effort to maintain speedy procurement while strengthening oversight.
Zaidi said government contracts must rest on sound legal and technical foundations, reflect fair market prices and be executed according to agreed specifications and quality standards.
“Inflated costs constitute one of the most significant avenues for corruption,” he said, stressing the need to tackle excessive pricing before projects are approved.
The move reflects a broader change in the government’s approach to fighting corruption by focusing on preventing abuses at the contracting stage, widely regarded as the most vulnerable point in Iraq’s public spending cycle, particularly for major infrastructure and investment projects.
Rather than relying primarily on investigations after irregularities emerge, the new approach aims to reduce opportunities for manipulation before contracts enter into force.
The initiative also seeks to strengthen coordination between the Federal Board of Supreme Audit and the Federal Integrity Commission as Baghdad continues to roll out large-scale investment and public service programmes requiring greater transparency and stronger governance.
Zaidi described the two oversight bodies as the state’s “shield” in protecting public funds and safeguarding citizens’ rights, calling for a preventive mindset to complement their traditional role of uncovering violations after they occur.
He also stressed that the audit board should remain insulated from political influence and power-sharing arrangements, saying competence, integrity, professionalism and impartiality must remain the governing principles of its work.
The government, he added, would provide both oversight bodies with the support needed to enable them to operate independently.
The latest measures build on Baghdad’s broader anti-corruption campaign. On June 28, Zaidi’s government launched “Dawn Crackdown,” targeting politicians, senior officials, civil servants and business figures suspected of corruption. Authorities announced dozens of arrests during the operation’s opening days, while subsequent raids in late July led to further detentions and the seizure of more than 41 billion Iraqi dinars, $400,000 and 45 kilograms of gold, according to official figures.
Officials say the new contract review mechanism is intended to strengthen public confidence in state institutions, protect public resources and improve Iraq’s investment climate by ensuring government contracts are subjected to rigorous legal, financial and technical scrutiny before they take effect.