GOI RAISES PROFILE OF ANTI-CORRUPTION EFFORTS

UNCLAS BAGHDAD 000441

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV KCOR KDEM PREL IZ
SUBJECT: GOI RAISES PROFILE OF ANTI-CORRUPTION EFFORTS

REF: 08 BAGHDAD 4047

SUMMARY
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1. (SBU) In recent days, statements and actions by the Prime
Minister, parliamentarians, and others have pointed up the
GOI's heightened concern over corruption -- but there is also
recognition that the GOI has a ways to go in establishing a
strong anti-corruption regime. END SUMMARY.

PRIME MINISTER'S STATEMENT: CORRUPTION AS "WHITE TERRORISM"
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2. (U) In a February 18 press statement, PM Nuri Al-Maliki
stressed the GOI's determination to conduct a "war" against
corruption, describing it as "white terrorism." He asserted
that no mercy would be shown those stealing government funds,
saying they were no different from terrorists in terms of the
seriousness of their crimes against the public.

MAJOR CORRUPTION SCHEME THWARTED
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3.(U) A spokesman for the Council of Representatives' (COR)
Complaints Committee told the media February 17 that the
Committee had thwarted a major corruption scheme at the
Municipalities and Public Works Ministry. The spokesman said
the scheme involved Ministry officials issuing false
contracts valued at $126 million. He added that the COR
Complaints Committee had acted in cooperation with the
concerned Minister, who had established a committee composed
of the Ministry's Inspector General and other senior
officials to investigate the scheme. The spokesman reported
the arrest and sacking of various officials implicated in the
scheme.

RECOVERY OF FUNDS BY MINISTRY
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4. (U) The Labor and Social Affairs Ministry announced
February 15 that it had recovered 1.75 billion dinars
(approx. $1.5 million) distributed to ineligible persons
under the anti-poverty social welfare program (Social
Protection Network program) run by the Ministry. According
to the Ministry's statement, 80,000 current and retired
Ministry employees had wrongfully obtained these funds.
(NOTE: This program, established in 2005, has long been
plagued by allegations of abuses by Ministry employees. As
reported in reftel, in December 2008 the Ministry's Inspector
General claimed in a press statement that 70 percent of the
funds allocated to the program were siphoned off by corrupt
employees and others. END NOTE) A source at the Ministry
corroborated the reported recovery of funds, but indicated
that there were no plans to sanction those implicated in the
wrongdoing.

CALL FOR INVESTIGATION OF CORRUPTION IN PROVINCIAL COUNCILS
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5. (U) The chairman of the COR's Legal Committee, in a recent
press statement, called for the investigation of possible
corrupt practices at the provincial level. He stated that,
following the January 31 Provincial Council elections,
allegations of corruption by outgoing Council members needed
to be examined. The media suggested possible implication of
provincial officials in alleged corruption schemes involving
U.S. military officials and others currently being
investigated by U.S. authorities in connection with
U.S.-funded reconstruction projects in Iraq.

COMMENT
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6. (SBU) The recent spate of GOI statements and actions
against corruption are welcome signs of officials' heightened
concern over the seriousness of this problem. However, the
GOI also recognizes that it has far to go in establishing a
strong anti-corruption regime and ensuring that those guilty
of abuses are brought to account -- as evidenced by the
failure, according to our source, to impose sanctions on
those implicated in the siphoning off of funds from the Labor
Qthose implicated in the siphoning off of funds from the Labor
and Social Affaris' social welfare fund. END COMMENT.

BUTENIS