The Iraqi Council of Representatives convened to address a sweeping financial audit detailing widespread public fund mismanagement, including 26 trillion dinars in uncollected corporate profits and illegal encroachments on roughly 500,000 state-owned properties.

Published initially by the state-run Al-Sabah newspaper, the Federal Board of Supreme Audit report outlines extensive financial discrepancies across multiple state sectors, prompting parliamentary leaders to demand accountability and course corrections.

Unrecovered Funds and Property Infringements

The audit identifies significant gaps in revenue collection and property management across Iraq's public enterprise and judicial sectors:

• Uncollected Enterprise Profits: A total of 26 trillion dinars in profits generated by state-owned companies over past years remains uncollected and has not been returned to the public treasury.
• Property Encroachments: Approximately 500,000 state-owned real estate units and properties have been illegally encroached upon. All associated cases have been referred to the Ministry of Justice for legal action to restore state ownership.
• Court-Ordered Compensation: The state has failed to collect 4 trillion dinars ordered by court rulings as financial compensation.
• Petroleum Tax Discrepancies: A tax discrepancy of more than 388 billion dinars was recorded regarding the financial entitlements of foreign and domestic oil companies between 2018 and 2023.

Parliamentary Response and Criticism

Haibat Al-Halbousi, Speaker of the Council of Representatives, criticized the performance of the Federal Board of Supreme Audit during the session, stating that the document fell short of expected standards of responsibility.

Al-Halbousi stated that Parliament will take decisive steps to correct the audit body’s trajectory. He demanded formal written responses detailing the precise sums of wasted funds and the specific nature of violations within each state institution.

Scrutiny of SOMO and Housing Sector

Discussions also focused on auditing current contracts held by the State Organization for Marketing of Oil (SOMO) and evaluating the economic feasibility of national housing projects.

Citing incomplete responses to questions raised during the proceedings, lawmakers decided to recall the staff of the Federal Board of Supreme Audit for further questioning. The parliamentary session was adjourned until Thursday.