Bastions of corruption: Auction of currency in Iraq as a model

Bastions of corruption: Auction of currency in Iraq as a model

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Only in Iraq !! No voice is louder than corruption, and there is no word more popular among Iraqis  except it  , It has become the focus of everyone’s attention, especially with the spread of international and local documents, that   the Iraqis who are tired of killing, displacement and poverty to wake up on  the largest operations of  systematic corruption in history, and of course  the simple citizen and no one else pays the bill in  the end .

 

We’re going to  complete the talk, which we began in a previous article about the auction of  currency done by the Central Bank of Iraq , The importance of this auction stems from being an auction for the exchange of foreign currency in Iraq to cover large expenses to support Iraq’s foreign trade and the other hand to help Iraq on a partial withdrawal of local currency from the  markets to help maintaining  on specific levels of inflation.

 

A few Days ago ,the Iraqi Central Bank announced its decision to deprive three private banks and 99 banking company from entering to  the window of  currency sale , for violating the laws and regulations on the purchase and sale of foreign currency. It is of course  information in which we’ve published a number of articles and reports on corruption within the corridors of the currency auction, and  for the influential figures who do not care about the law or regulations.

 

Many of the documents revealed the largest  gaps of  corruption  that leaked from it  $ 312 billion through auctions of the Central Bank to sell the currency through fake invoices .. It seems that these documents there will  come daily according to the  events experienced by Iraq, and because of the evidence of the involvement of figures in the processes of corruption, and recently , the Minister of Finance Hoshiyar Zebari, revealed  during an earlier television interview  for converting an amount of six billion , four hundred and fifty million dollars to account Hamad Yasser Mohsen al-Moussawi, the owner of Bank of Huda , and   sources have  indicated that the  transferred amount is more than nine billion and  it has been converted from Hamad al-Moussawi.

 

The central bank publish a copy of the  letter  which was sent to the Integrity Committee of the parliament  , and it was  declared in it  for the lack of any transfer of $ 6 billion and $ 455 million outside Iraq to account of  Moussawi.

 

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what makes it easier for the work of  these people who  abuse with money of  Iraqis  is  that the  influential  personalities are standing   behind them, thus the field was available to them and their  suspicious operations , and here we mention reports  indicated that former Prime Minister Nuri al-Maliki   stood  behind characters like; Hamad al-Moussawi, which had a long history at the central bank operations and money laundering , and sources indicated Maliki has defended about the innocence of al-Musawi, who is one of the closest merchants  to  him  ,   and who is also one of the arms of Almaliki, to close all the files of corruption that could topple the big heads.

 

In the same context,  the parliamentary finance committee member Majda al-Tamimi revealed  that banks managers benefit from currency auction of the Central Bank of the value range between 300 to 400 million dollars a month.

 

She pointed out that «the state reserves of foreign currency has greatly decreased as a result of leakage of funds to the pockets of the ” corrupt ”  In addition to the presence of 20 defendants in these cases, some of them are with a  degree of   Chairman of Bank Management Board .

 

And as the Rawbet center   for Research and Strategic Studies  has been distinguished  in a previous article in detection  of  a meeting of a number of banks and banking employers in Baghdad about the price of  dollar and the need to reduce its price on the black market, and they threatened to  issue a decision to limit the auction with  a limited number of banks.

 

As it is well known, ”  to be  safe from the penalty ,  to offend the morality” noting that the  whales of  auction threatened to issue a decision to limit the auction to  a limited number of banks, some of them  said they were able to  control  of  all  joints  of the state , and the price of the dollar and they reject to sell the dollar   available in their accounts abroad.

 

To go in details  into the subject of the currency auction is  complex and  sensitive , as a result of providing the necessary cover by personalities of a sensitive positions in Iraq , and it is shown through the size of money that has  been smuggled in the currency auction, which was estimated at 57% of oil incomes since 2006 , while  reports talking of  smuggling of nearly 200 billion dollars from Iraq to other countries between 2005 and 2014. And reports  talked earlier  that the central bank in 2009 sold 92%, of  oil incomes which entered the country. ”

 

The Iraqi central bank sold more than $ 44 billion in foreign currency auction in 2015, and   statistics mentioned , published by the bank,  that the quantity sold to banks amounted to 44 billion and 303 million and 799 thousand and $ 966.

 

We pointed out that Iraq’s debt is today about 77% of GDP, while the normal  not exceed 60% of GDP, which is an abnormal situation and worrying.  this case  creates the growth of  Iraqi debt  that it  became  large and   Iraq has become running   to countries and donor financial institutions like the World Bank and the IMF and 7 industrialized states  , and currently is discussing with Britain to borrow $ 13 billion. However, the current policy has not changed noting that  wealth of people  is stolen    through the window of  selling  the currency in force  till now .

 

The economists indicates that the Iraqi borrowing exceeded $ 100 billion, a very large number  and enter the country in a dark tunnel because if the interest rate of 2% , Iraq will pay $ 2 billion per year.

 

Suspicious transactions that took place over the currency auction wasted huge amounts of the capabilities of the Iraqi people, as reports  have talked  of wasting billions of dollars by Iraqi officials between 2008 and 2014, during the reign of al-Maliki, who  his tenure as prime minister has seen the biggest corruption in Iraq’s history, however, there was no punishment or account.

 

While the Parliamentary Commission of Economy announced that the bank presented an appeal to the Federal Court to cancel setting the auction at 75 million dollars a day in the budget, which led to cover the merchant need of hard currency on the black market.

 

The dollar exchange rate in the Iraqi market  see  a continuous rise despite central bank measures to maintain stability; During the past two months, Iraqi market has seen a gradual rise in the dollar’s exchange rate against the dinar, is currently up to 1300 dinars to the dollar.

 

The banking sector in Iraq need to re-review and revealing, the sector  has witnessed  suspicious operations of hundreds of billions of dollars, in addition to that it has become a hotbed for some politicians and corrupt and needed today to find strict legislation that  deters those who tempted to  touch  the food of Iraqi people and the wealth of the country, and put in place mechanisms to check the credibility of  invoices  and make sure of  the customer’s account and the fact of  the required amounts , Do it covering imports by the private sector or for other reasons.

 

Iraqi citizen has been suffering from this corruption, which came on everything and everybody, and even with the government’s attempt to facing this great genie ,a torrent of corruption  is still tremendously that nothing  stand in his way , thus  the street exploded  and  thousands of Iraqis  came out to the streets, demanding the “cleansing” of state institutions of corruption , but  the matter is  large equal to the size of corruption and its  family, however, reports  continued  revealing the extent of the disaster that befell Mesopotamia in which  its resources were looted  and capabilities lost and divided among a bunch of thieves.

 

The builder of the renaissance of Singapore Lee Kuan Yew kan  say ” when thieves walking in the streets are safe , there are two reasons:” Either the system is a great thief or the  people is  the largest stupid , ” the corrupt is still  practice of   scheduled theft operations  over the office and their relationships  under  the sight of  government. .. While  the phenomenon of begging were spread  in the heart of the capital Baghdad because of the deteriorating economic situation in Iraq, while the auction of  currency at the Central Bank of Iraq has become  a big feast and money laundering and the smuggling of the dollar abroad, and here , a  very large and fast action is put on  both the government and the people  to save what can be saved before it is applied to Iraq the saying   “that hole in the dress is bigger than anyone can fix . ” ( it is said  at the spread of  corruption and could not be  reformed ).

 

Rawabet Center for  Research and Strategic Studies