UPDATE ON TRADE MINISTRY ARRESTS OVER CORRUPTION

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 001224 SIPDIS E.O. 12958: DECL: 05/09/2019 TAGS: PGOV KCOR ETRD IZ SUBJECT: UPDATE ON TRADE MINISTRY ARRESTS OVER CORRUPTION REF: BAGHDAD 1176 Classified By: ACCO COORDINATOR JOSEPH STAFFORD, REASON 1.4 (B AND D). SUMMARY -------------- ¶1. (C) The Commission on Integrity (COI) head, Judge Rahim Al-Ugaili, confirmed the arrest of one the Trade Minister's two brothers accused in the ongoing investigation into corruption at the Trade Ministry. Judge Rahim said that he was convinced of the Minister's personal involvement, but that the investigating judge did not regard the evidence gathered to date as sufficent to act against the Minister. The outcome of this investigation, given the senior officials allegedly involved, is likely to be an important test of the GOI leadership's often-professed commitment to combating corruption at all levels. END SUMMARY. ARREST OF MINISTER'S BROTHER -------------- ¶2. (C) In May 9 meeting, Commission on Integrity (COI) head Judge Rahim Al-Ugaili provided Anti-Corruption Coordinator and staff (ACCO) with an update on the corruption allegations centering on the Trade Ministry (MOT) that surfaced in late April (reftel). Confirming press reports, he stated security officials had arrested Sabah Mohamed Al-Sudani, a brother of Minister Abd Al-Falah Al-Sudani, at a checkpoint in southern Iraq as he attempted to flee the country. Judge Rahim stated that officials found $100,000 and 16 cell phones in the brother's passenger. According to Judge Rahim, authorities are continuing to search for another brother of the Minister was well as other MOT officials. THE MINISTER'S INVOLVEMENT -------------- ¶3. (C) Judge Rahim said that, based on the results of the COI's investigation to date, he was convinced of the Minister's personal involvement in the alleged corruption scheme, which entailed kickbacks to MOT officials from the purchase of spoiled tea for the MOT-administered food ration program, the Public Distribution System (PDS). He expressed certainty that Minister Al-Sudani, his denials of wrongdoing notwithstanding, would have been aware of -- and approved -- the relevant purchase contracts for the spoiled tea from which the kickbacks stemmed. Judge Rahim added, though, that the investigating judge handling the case had not found the evidence submitted so far to be sufficient to justify issuance of a warrant for the Minister's arrest. (COMMENT: Judge Rahim made clear his view that the evidence was indeed sufficent to justify action against the Minister. END COMMENT) PROSPECTS OF PUNISHMENT -------------- ¶4. (C) The COI head acknowledged ruefully that it was possible that in the e>.Q0RQG:lQQ1MQin his or her ministry for actions undertaken in the performance of their official duties. Also still in effect is the Prime Minister's "secret order" of 2007 providing that no minister can be investigated without the Prime Minister's expressed permission. END COMMENT. BUTENIS BAGHDAD 00001224 002 OF 002 under the controversial 136b provision of the criminal code, to block prosecution of officials in his or her ministry for actions undertaken in the performance of their official duties. Also still in effect is the Prime Minister's "secret order" of 2007 providing that no minister can be investigated without the Prime Minister's expressed permission. END COMMENT. BUTENIS