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Allawi distances himself from the "trillion scandal" and throws the ball into the Parliamentary Finance Court. Documents

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Allawi distances himself from the "trillion scandal" and throws the ball into the Parliamentary Finance Court. Documents

politics  breaking  Minister of Finance  Iraqi parliament  Ali Allawi  tax authority  Tax money theft
2022-10-19 19:18

Shafaq News/

The "resigned" Finance Minister Ali Allawi held today, Wednesday, the

Finance Committee of the former parliament, responsible for

canceling the Oversight Bureau, which led to the "big trillion theft."

To the disbursement of 247 checks to “influential political parties
that profit fromwhales of corruption
provide “immunity” for the corrupt.

And the statement of former Minister Allawi, which was received by Shafaq News Agency, stated that

"on August 16, 2022, he submitted his resignation from the Iraqi government, and

at that time explained the decay and deterioration of state institutions, especially in the financial, and the

spread of interference from outside the illegal ministry in the state administration." He explained,

"Two months after the resignation, we faced perhaps one of the biggest financial scandals of the modern era." and punishment."  The minister added,

"The enormous scope of the scandal also provides opportunities to make irresponsible allegations and draw conclusions without any serious justification, and

for this purpose we found it necessary to clarify in detail the position of the Ministry of Finance from the perspective of the Minister of Finance so that the public is aware of the facts of the matter."  And Allawi indicated that

"a letter received from the Finance Committee of the previous parliament, dated July 13, 2021, and carried the issue 2021, requesting that the audit of tax and customs secretariats be limited by the General Tax Authority without going through the Office of Financial Supervision, and

based on that request, the receipt of complaints to the Finance Committee regarding delays and others.

One of the reasons mentioned in the committee’s book,” noting that

there is correspondence between the Financial Supervision Bureau and the Prime Minister’s Office on the same content, as the Bureau supports the proposal of the Parliament’s Finance Committee.”  He noted that

"the letter of the Office of Financial Supervision of the Office of the Prime Minister No. 12772/3/1/1 on July 27, 2021 and

a letter that the Office of the Prime Minister answered to the Office in the number M.S.R.S./S.D. 2907/2 on August 1, 2021."  Allawi pointed out that

"the approval of the Minister of Finance on August 26, 2021 was made according to the above, as

it was based on the
request of the legislative body represented by the Finance Committee of the previous parliament and the
approval of the Financial Supervision Bureau and the
Office of the Prime Minister, as well as the
request of the authority responsible for the process (the General Authority for Taxes),

which allows It may request that the nature of the work structure in the ministry, which includes the institutions, companies and bodies affiliated with it, to manage its financial affairs in accordance with its founding laws,” stressing that

“the approval of the Minister of Finance was conditional on the implementation of the regulations in force in the matter.”  And the former minister continued in his clarification, that

"and to ensure that the tax secretariats are not tampered with, the Minister of Finance issued on August 5, 2021 Ministerial Order No. (5)

in which he decided to form a central ministerial committee headed by him for the purpose of organizing and supervising the tasks of tax work, including by following up on the responses of taxpayers in coordination with The financial section on the correctness of the taxpayer’s payment,” noting that

the above administrative measures and control tools instructed by the Minister of Finance led to the impossibility of acquiring tax trusts by promoting false return transactions by the group accused of theft.”  The resigned minister added that

"the Integrity Commission has investigated some transactions to return suspicious tax deposits," explaining that

"the results of this investigation came in the Federal Integrity Commission letter No. T5/7079 on August 31, 2021, which indicated that the Integrity Commission did not request to stop The instrument resulting from the treatment of refunding questionable tax deposits and the absence of damage to public funds.  And he continued,

"The above Integrity Book indicated taking the necessary measures to proceed with refunding the tax deposits," noting that

"the Minister of Finance informed the Prime Minister's Office several times about the risks involved in allowing this situation to continue."  Allawi added,

"On September 29, 2021, he informed the Prime Minister's Office of the text, verbatim:

   “They move around and appoint fools whom I have to clear up later.

I can't go on like this when I know the ministry is being eaten up from within and I can't do anything about it.

All circles are infiltrated by parties and oligarchs and
there is no one capable and capable who is willing to work in This atmosphere."      Minister Allawi stated,

"Nevertheless, when the Minister's office received indications that raise doubts about the continuation of manipulation operations with regard to the recovery of tax deposits, the Minister of Finance addressed the General Tax Authority on November 1, 2021, requesting the priorities of all transactions to recover the deposits that took place during the years 2020 and 2021." Indicating by saying,

"And to confirm the prevention of manipulation, the Minister of Finance attributed on November 4, 2021 that the General Tax Authority did not issue a refund of deposits to the taxpayers before obtaining the approval of the Minister, provided that all the transactions of refunding the deposits are presented to the Minister after completing all the fundamental procedures." He continued,

"On November 5, 2021, he confirmed to the Prime Minister's Office that there were doubts about the continuation of manipulation operations with regard to the recovery of tax trusts, and a report was submitted on this."      The former minister pointed out that

what could not be monitored is the group accused of theft issuing sukuk without promoting deposit recovery transactions through a direct process between the General Tax Authority and Rafidain Bank and without being disclosed by the Ministry’s Audit and Oversight Department.

It was an operation that was carried out within the corridors of the General Tax Authority and the Rafidain Bank.  He added,

"Among the powers available to them, without the Ministry of Finance having any interference in these dangerous practices, as

the Minister of Finance did not receive any notification from the Ministry's departments about the process of releasing and withdrawing the aforementioned instruments,

and the Rafidain Bank, in turn, did not inform the Minister about the huge sums that were He withdrew it from the bank despite the minister’s meeting with the banks’ departments periodically to follow up on their affairs.  

Allawi believed that

"the withdrawal of the Financial Supervision Bureau and

limiting the process of auditing transactions to return the amounts of tax deposits to the General Authority for Taxes, and according to

the request of the Finance Committee of the House of Representatives,

led to an increase in the possibility of fraud on the Tax Authority,

however, the internal procedures of the Tax Authority to verify the legitimacy of the transactions of trusts were They should have stopped outright fraud, but

what seems to have happened is that checks were issued to return the deposits without any recorded transaction or paper trail,

which means that no audit, from any source, could stop them because they were off the records,” adding,

“So received The bad guys were not registered in the tax authority accounts.

According to the instructions issued by the Minister of Finance, it was not possible to issue bonds without going through the audit steps of the tax authority, followed by specific approval from the minister's office."  

The resigned minister pointed out that

one of the main factors that led to this brazen theft is the fact that the ministry, its arms, and the state as a whole are unfortunately behind in terms of adopting automated information, accounting and reporting systems,” explaining that

to address this, the finance minister has put in place four different programs to fully automate the ministry.”, customs and tax authorities, and the establishment of a single treasury account, and he continued,

"If these systems were fully available, it would have been impossible for a theft of this magnitude to occur.

However, these programs are not yet fully installed.

It takes more time and will to
rein in resistance to change and to
confront the broad and deep resistance to automation
until systems are rescued and fully operational.”  
Minister Allawi warned against "some general managers and state employees

not complying with the regulations and laws governing their tasks,
not following the ministerial orders and the minister's directives,
concealing information and
preventing the supervisory departments from playing their role and reporting it," pointing to

"what happened in the Ashtar case, where the

contract was signed despite The explicit directive of the Minister of Finance to the contrary and the

issue of tax secretariats where no less than 247 trust response instruments have been issued despite the explicit directive of the Minister of Finance to stop it.  He said,

"All of this is due to loyalty to influential political parties that
profit from whales of corruption and
provide immunity to the corrupt

The resigned minister advised whoever assumes responsibility to "check the accounts of other trusts in the state, including the accounts of the customs authority,"

wishing success for "the judicial authorities that are looking and working to punish the corrupt by performing their duties in the fullest manner and returning the right and public money to the people."

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