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DINAR REVALUATION UPDATE: The "Theft of the Century": Unraveling the Iraqi Tax Deposit Scandal, 27 AUGUST

 The "Theft of the Century": Unraveling the Iraqi Tax Deposit Scandal

In a startling exposé, the Iraqi Observer has illuminated the full narrative of the infamous tax deposit theft, referred to as the "theft of the century," shedding light on the pivotal role of Nour Zuhair Jassim in orchestrating the heist. 2

Unveiling the Scheme

The General Tax Authority's secret report has unveiled the intricate details of how the theft unfolded, revealing a network of complicity and deception. Between September 9, 2021, and August 11, 2022, a staggering amount of 3.7 trillion Iraqi dinars, equivalent to approximately $2.5 billion, was systematically siphoned off. 2

The Masterminds and the Shell Companies

The report implicates two key individuals, Nour Zuhair Jassim and Abdul Mahdi Tawfiq Mahdi, who utilized five shell companies as fronts for the illegal withdrawals. 2 These companies, Al Qant General Contracting, Humpback Whale General Trading, Baghdad Winds General Trading, Innovators for Oil Services, and Badia Al Masaa General Trading, served as conduits for the embezzlement, with each company receiving significant sums ranging from 433.015 billion dinars to 1.185 trillion dinars.  2

The Auditors' Revelation

The auditors' investigation, which came to light recently, has exposed the depth of the fraud. The auditors discovered that the checks, totaling 247 in number, were cashed from a branch of the state-run Rafidain Bank housed within the tax commission. 6

Political Ramifications

The scandal has cast a shadow over the Iraqi government, particularly the administration of former Prime Minister Mustafa Al-Kadhimi, who was in office when the theft occurred. 4 Current Prime Minister Mohammed Shia Al-Sudani, who assumed office in late 2022, has vowed to address the issue but faces significant challenges in light of Iraq's entrenched patronage system.  6

Public Outrage and Parliamentary Inquiry

The public outrage sparked by the scandal has led to a parliamentary investigation into the sudden increase in taxes, which many suspect is an attempt to recoup the lost funds. 5

The Aftermath

The repercussions of this theft continue to unfold, with growing demands for accountability and transparency in Iraq's governance. The scandal has become a rallying point for anti-corruption movements in the country, which has long struggled with systemic corruption. 3

Secrets” Of The Theft Of The Century... “Iraq Observer” Publishes The Full Story From A To Z, 27 AUGUST

  August 26, 2024  Baghdad/Iraq Observer   A secret report prepared by the Iraqi General Tax Authority revealed the full story of the theft of tax deposits, or as it is known as the “theft of the century,” while  highlighting the role of Nour Zuhair, the most prominent accused of the theft.

 According to the report, which was reviewed by “Iraq Observer”, “after auditing the Authority’s deposit account in Rafidain Bank No. (60032), the facts contained became clear to us,” indicating that “during the period from (September 9, 2021) to (August 11, 2022). ) A total amount of three trillion, 701 billion and 380 million Iraqi dinars was withdrawn from the tax deposit account.

He added,  “The amount was withdrawn using 247 bank instruments by third parties that do not represent the original depositing parties nor the General Tax Authority,” pointing out that  “the parties to whom the total amount was disbursed are five companies, namely:

 A. Al Qant General Contracting

for. Humpback Whale General Trading

T. Baghdad Winds General Trading

 Th. Innovators for oil services

C. Badia Al Masaa General Trading.

According to the confidential report prepared by the General Tax Authority, it was found that  “the five companies in whose names these amounts were withdrawn are owned by only two people, namely Nour Zuhair Jassim and Abdul Mahdi Tawfiq Mahdi.” 

The report indicates that  “during the period referred to (September 9, 2021 to August 11, 2022), the five companies withdrew the amounts listed below:

A. Al-Qant General Contracting Company:  1.185 trillion dinars

 for. Humpback Whale General Trade Company:  982 billion dinars

 T. Badia Al Samaa General Trading Company:  624 billion dinars

 Th. Baghdad Winds General Trade Company:  477 billion dinars

 C. Mbdoun Oil Services Company:  433.015 billion dinars

 He stated that “all the amounts withdrawn from its bank account were withdrawn in cash and by hand,” pointing out that  “the largest instrument disbursed was in the amount of 44 billion dinars, and that the smallest instrument was in the amount of 10 million dinars, and the  companies that withdrew the funds had no tax deposits.” 

He noted that  “the five companies are newly established companies with small capitals.  The two companies, Al-Qant and Mbdoun, were founded in 2021, and  the other three companies were recently established.”  

https://observeriraq.net/خفايا-سرقة-القرن-عراق-اوبزيرفر-تنشر/     

LATEST FROM TEXAS SNAKE, 27 AUGUST

 TEXAS SNAKE

Will read all your posts and hopefully the banker will have something positive I can share with y'all tomorrow.

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TEXAS SNAKE

Nothing to share just wanted to let you folks I was still around

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 TEXAS SNAKE

Well folks everything remains very positive for our anticipated event so continue to pray this event in for the sake of the world's economy as well as each of us participants.  GOD Bless each member.

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TEXAS SNAKE

Banker indicates many positive items are pointing to Thursday, we shall see.

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TEXAS SNAKE

AUGUST 03

 love this room now, Leaves TS to be free to speak, admins never jump in cause issues and people have continued to come in and all seem to keep to the subject, truly the room has become what we all wanted it to be.

It is presently 3:10 AM in Bagdad Monday morning and additional info is coming forward over and above what was shared on the Conf Call I was included in last night.  Still very encouraged about tomorrow in US as well as this coming week.

You are correct it will be Monday when the banker calls me in the morning.

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AUGUST 06

Well foiks truly wish I had something to report but with all the NDA;s being issued it is much harder to obtain anything of value.

AUGUST 07

Things are in positive motion folks hang in there, NDA's are the issue at present for status of our benefits to be realized but it is days not months

AUGUST 09

Texas Snake, [08/09/2024, 9:13:08 p. m.]:

While due to the many NDA's that those who have provided info to me has resulted in the limited info I can share we are still in a positive situation to realize our objective.  Wish I could share more of the particulars but cannot risk their safety.

Gonna be an early night forme as I need tp prepare a men's breakfast for our church in the morning but will open for a bit for you folks to share anything you may have.

LATEST REPORTS OF TEXAS SNAKE: 

RV UPDATE BY TEXAS SNAKE, 4 AUGUST

https://dinarevaluation.blogspot.com/2024/08/rv-update-by-texas-snake-4-august_01843290374.html 

RV UPDATE BY TEXAS SNAKE, 2 AUGUST

https://dinarevaluation.blogspot.com/2024/08/rv-update-by-texas-snake-2-august.html 

"WE ARE CLOSER EACH DAY" BY TEXAS SNAKE, 1 AUGUST

https://dinarevaluation.blogspot.com/2024/08/we-are-closer-each-day-by-texas-snake-1.html

Iraqi Banks Take Charge: Financing Foreign Trade with Own Dollar Reserves!

DINAR REVALUATION UPDATE: Iraqi Banks to Finance Foreign Trade Using Own Dollar Reserves in 2024, 27 AUGUST

Iraqi Banks to Finance Foreign Trade Using Own Dollar Reserves in 2024

As of August 27, 2024, Iraqi banks have taken on the responsibility of financing foreign trade directly through the dollars they own, rather than relying on the Central Bank of Iraq's (CBI) reserves. 1 This shift marks a significant change in the country's financial operations, aiming to enhance economic stability and reduce dependency on central bank funds.

Background and Context

Iraq has been grappling with a complex financial landscape, characterized by corruption and regulatory challenges within its banking sector. 2 The decision to have banks finance foreign trade through their own dollar reserves comes amid efforts to reform the banking system and improve financial governance. 3

Impact on Foreign Trade

The move is expected to have substantial implications for the way foreign trade is conducted in Iraq. By utilizing their own dollar reserves, banks can potentially streamline transactions and foster greater independence in managing foreign currency flows. 4 This could lead to improvements in the efficiency of trade operations and a reduction in reliance on central bank interventions.

Challenges and Opportunities

Despite the potential benefits, this transition presents challenges. Banks will need to carefully manage their dollar reserves to ensure they can meet the demands of foreign trade without jeopardizing their liquidity positions. 5 It also signals a need for enhanced regulatory oversight to prevent misuse and ensure compliance with international financial standards.

Conclusion

The decision for Iraqi banks to finance foreign trade using their own dollar reserves is a pivotal step in the country's financial reform agenda. It underscores the government's commitment to modernizing the banking sector and reducing the economy's dependency on central bank resources. As Iraq continues to navigate its economic challenges, this move could pave the way for a more resilient and self-sufficient financial system.

Iraq Central Bank says regulated dollar transactions rising, 27 AUGUST

 With dollars dominating the country's economy, Baghdad has imposed a series of restrictions on the use of American greenbacks domestically. 

At the end of 2022 the country's bankings sector also adopted the international financial messaging system known as SWIFT as part of the reforms, to help tackle money laundering and ensure respect for international sanctions.

Oil-rich Iraq has no shortage of dollars, with foreign currency reserves of more than $100 billion (92 billion euros). But experts say tax evasion, the black market and dollar smuggling to countries and entities facing United States sanctions, mainly neighbouring Iran, have increased demand for foreign currencies.

Transactions through the Central Bank electronic platform -- which ensures compliance with SWIFT -- have considerably increased, the bank's vice governor Ammar Khalaf told AFP.

Many "foreign trade transactions are now being conducted via the platform," he said.

"At the beginning of 2023, transactions were at $50 million per day. Now, we have around $200 million, which is consistent with the size of Iraq's economy," he added.

Iraqi banks wanting to access dollar reserves held in the United States must make transfers through the electronic system. The US Federal Reserve will then examine the requests and block them if it finds them suspicious.

"We noticed that rejections have decreased recently because the banks understood international requirements" and traders know better what is needed to transfer their money, Khalaf said.

But the black market is still thriving. 

The official exchange rate is fixed by the government at 1,320 dinars to the dollar. On unofficial markets the dinar has been trading at 1,470 per dollar.

Iraq has close commercial ties with Iran, which also wields considerable political influence in Baghdad where its Iraqi allies dominate parliament and back the current government.

Prime Minister Mohamed Shia al-Sudani acknowledged last year that sanctions preventing dollar transfers to Iranian banks had driven Iraqi traders to the black market.

In late November, the government announced steps to encourage importers of goods like cigarettes, cars, gold and mobile phones to use official channels to obtain dollars.

Iraqi authorities have banned more than 20 Iraqi banks from conducting dollar transactions in accordance with US regulations regarding sanctions and against money laundering.

"We are in constant contact with the American Treasury in an attempt to lift the ban," Khalaf said, hoping that talks "will yield good and positive results." 

The banned banks are restricted from dealing in dollars, but they are allowed to operate local transactions.