ANTI-CORRUPTION UPDATE: TRADE MINISTER'S CASE TO

UNCLAS SECTION 01 OF 02 BAGHDAD 001990

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KCOR KDEM KCRM PGOV IZ
SUBJECT: ANTI-CORRUPTION UPDATE: TRADE MINISTER'S CASE TO
COURT

REF: BAGHDAD 1601 ET AL


1. (SBU) SUMMARY: In a significant ruling, the Council of
Ministers clarified existing requirements regarding
minister-level permission to send criminal cases against
former government employees to Iraqi courts. Prime Minister
al-Maliki's office subsequently announced an agreement to
send the former Trade Minister's case to the judiciary. The
GOI Anti-Bribery Campaign is still a work in progress.
Parliament probably will not pass any anti-corruption
legislation this year. END SUMMARY.

UPDATE ON THE TRADE MINISTER'S CASE - GOING TO COURT


2. (SBU) Responding to a Commission on Integrity (COI)
inquiry, the secretariat of the Council of Ministers (COM)
notified the Higher Judicial Council and the COI July 20 that
ministerial level permission is not required to refer to the
competent court criminal cases against former government
employees accused of illegal acts committed while in their
official positions. This ruling clarifies executive branch
application of rule 136b of the Iraqi Code of Criminal
Procedure. With this ruling, Ministers cannot invoke rule
136b to end any investigation against the former employee.
Following this decision, the Prime Minister's office
announced that al-Maliki had agreed to forward to the courts
the case of administrative and financial corruption charges
against former Trade Minister Abdul-Falah al-Sudani.
According to the Head of Investigations for the COI, Sajaad
Maa'touk, the COI completed the investigation of the
allegations against the Trade Minister and he believes there
is sufficient evidence against al-Sudani. Sajaad said he
does not know the Trade Minister's whereabouts, but noted he
is out on bail and has no legal right to leave Iraq.

ANTI-BRIBERY CAMPAIGN


3. (SBU) Sajaad said the GOI's Anti-Bribery Campaign
launched on June 1 is still in its nascent stages.
Nevertheless, the COI and the Inspectors General (IGs) are
coordinating well on this project and have had numerous joint
committee meetings to plan their strategies. Much of the
actual project implementation, including the installation of
cameras and listening devices to monitor GOI employees'
interaction with Iraqi citizens, has not been done. However,
there has been a media campaign to make the public and GOI
public servants aware that such a program will soon be a
permanent part of the GOI's way of doing business. Since the
June 1 kickoff, Deputy COI Commissioner Judge Ezzat Jaafer,
who is coordinating the program, and committee members have
conducted unannounced inspections at selected offices,
including the passport and ID directorate, notary office, tax
directorate, court order implementation office, and property
registration directorate. In the future, the Public
Distribution Program in the Trade Ministry and various
offices in the Oil, Electricity, and Human Rights Ministries
will be targeted. Eventually, Sajaad added, all ministry
offices will be subject to this monitoring as each IG devises
a plan to bring his/her ministry into the fold.


4. (SBU) Sajaad could not give examples of anyone caught in
the act yet, but noted the awareness campaign itself gives
employees the incentive to behave properly on the job. He
did say a forgery gang that supplied 5000 certified high
school diplomas for USD 3000 each had been arrested after a
COI sting operation, but this arrest was the result of
information obtained through a snitch, not through
monitoring. He lamented that some IGs and IG investigators
were weak and needed extensive training. Some also still had
to obtain permission from their ministers to implement
Qto obtain permission from their ministers to implement
monitoring activities even though no minister had publicly
objected to the campaign and the Prime Minister publicly
supported it.

STATUS OF DRAFT ANTI-CORRUPTION BILLS AND STRATEGY


5. (SBU) Sajaad did not believe any anti-corruption
legislation would emerge from the Parliament this year,
although several members from smaller political parties
continue to call for more anti-corruption investigations of
senior government officials. He noted members of Parliament
(MPs) objected to various sections of the draft laws for the
Board of Supreme Audit, IGs, COI, and the draft comprehensive
Anti-Corruption Law; these laws were accordingly amended.
(NOTE: MPs from various political affiliations have told
poloffs and the media that the Parliament's anti-corruption
drive has become highly politicized in the run-up to the
January 2010 elections. The Parliament has tightened the
procedure for questioning ministers by requiring both the
Speaker and the two Deputy Speakers to approve such action.
END NOTE.).

BAGHDAD 00001990 002 OF 002




6. (SBU) Sajaad was more optimistic about the draft
Anti-Corruption Strategy on which Judge Rahim Al-Ugaili, COI
Acting Commissioner, is working. The COI will host in August
a conference to discuss the strategy and get input from other
sources, particularly the UNDP on the UN Convention against
Corruption (UNCAC) obligations. UNDP is working on a GOI
self-assessment and GAP analysis to help the GOI figure out
what they need in order to be in compliance with their
obligations under the UNCAC. The COI also wants to add new
sections to the current draft related to their Anti-Bribery
Campaign. They would like to finalize the draft shortly
after this conference so they can forward it to the Prime
Minister for his approval. (NOTE: The Anti-Corruption
Coordinating Office will be invited to this conference. END
NOTE.).
FORD