Report claims $35bn Iraq oil scheme financed militias, political parties
DUBAI/BAGHDAD – A vast corruption network inside Iraq’s oil sector diverted more than $35 billion through illegal crude deals and fuel schemes over the past decade, with proceeds allegedly financing armed groups and political parties, according to information obtained by Al Arabiya.
The allegations come as Iraqi judicial authorities continue expanding a high-profile corruption investigation involving former Deputy Oil Minister for Refining Affairs Adnan al-Jumaili, announcing fresh asset seizures linked to the case.
According to Al Arabiya’s sources, illegal oil transactions dating back to 2011 channelled revenues from more than 1.5 million barrels per day, over a third of Iraq’s oil production, to militias and political factions, depriving the state of billions of dollars in income.
The sources said officials manipulated crude allocations issued by the Oil Ministry, diverting volumes for the benefit of armed groups and political organisations. They also alleged that politically connected entities received official licences to establish oil-processing facilities through patronage and bribery.
The sources further alleged that manipulation of fuel earmarked for domestic consumption helped sustain large-scale fuel smuggling operations, while price differentials on petrol created lucrative opportunities for theft.
The claims emerge as Iraq’s judiciary continues one of its largest corruption investigations.
On Sunday, Iraq’s Central Anti-Corruption Criminal Court announced the seizure of an additional 27 billion Iraqi dinars allegedly linked to Jumaili and individuals under investigation.
The investigating judge said the money had been concealed through several individuals as part of efforts to hide proceeds allegedly generated from corruption in projects overseen by the suspended official and others connected to the case.
The latest recovery adds to a series of major seizures announced by judicial authorities.
Iraq’s judiciary said it has now confiscated 213 billion Iraqi dinars, $12 million in cash and 400 kilograms of gold in connection with the investigation into Jumaili, while stressing that inquiries remain ongoing.
Jumaili, who previously headed the North Refineries Company before becoming deputy oil minister for refining affairs, was arrested in May on allegations including corruption, embezzlement and misuse of public funds.
Judicial authorities say investigators are continuing to trace financial assets, identify additional suspects and recover proceeds believed to have been concealed through intermediaries.
The investigation has become one of Iraq’s most prominent anti-corruption cases as authorities seek to recover public assets and dismantle alleged financial networks operating within state institutions.