Iraq lawmakers scrutinize Karbala Refinery contracts amid government anti-corruption drive

Baghdad (IraqiNews.com) – Iraqi lawmakers have begun reviewing government contracts suspected of containing inflated costs, as Prime Minister Ali Al-Zaidi intensifies efforts to tighten oversight of public spending and prevent corruption before contracts are approved. The renewed scrutiny comes a day after Al-Zaidi ordered the Federal Board of Supreme Audit to establish a specialized team responsible for conducting pre-contract financial audits within 10 working days. The initiative aims to identify high costs before agreements are finalized, marking a shift from investigating corruption after it occurs to preventing it at the contracting stage. MP Haider Mohammed Al-Mutairi, a member of the Ishraqat Kanoun bloc, called on the prime minister to review several contracts related to the Karbala Refinery, arguing that some agreements warrant immediate investigation due to their financial burden on the state. Al-Mutairi urged the formation of a high-level investigative committee to examine a consultancy contract involving 49 advisers, claiming it costs the Iraqi government approximately $52 million annually. He also highlighted an operational contract for the refinery valued at $180 million per year, which he said amounts to nearly 750 million Iraqi dinars in daily expenditures. The MP called for greater transparency in reviewing major state contracts, particularly those involving strategic infrastructure projects. The parliamentary review follows a broader government campaign to strengthen financial oversight across ministries and state institutions. Prime Minister Al-Zaidi directed the Federal Board of Supreme Audit to implement mandatory pre-audit procedures for government contracts, including setting financial thresholds that determine which agreements require advance scrutiny. According to the prime minister, inflated contract values and weak oversight have long been among the primary channels through which public funds were lost. He stressed that Iraq’s next phase of anti-corruption efforts should focus on preventing irregularities before contracts are signed rather than relying solely on post-contract investigations. The government says the new oversight framework is intended to improve transparency, accelerate contract reviews, and safeguard public finances without delaying legitimate development projects. The initiative forms part of a wider reform agenda aimed at enhancing accountability, improving governance, and restoring confidence in public procurement procedures. No official findings regarding the Karbala Refinery contracts have been announced, and any investigation would be subject to the legal and auditing procedures established by Iraqi authorities.