Iraq's Federal Supreme Audit Board has identified widespread financial and administrative irregularities across several government institutions, including millions of dollars in questionable spending, uncollected taxes, and budget discrepancies, according to its latest report.

Millions Lost in Oil Sector Projects

The report found that the Dhi Qar Oil Company carried out the Nasiriyah oil field water project at a cost of $3.5 million without referring it to the cost assessment committee or imposing contractual penalties for delays.

It also said the Basra Oil Company spent $6.729 million drilling an oil well that never entered production, resulting in no economic return.

$2 Million Spent on Protective Equipment

At the Zubair oil field, the Audit Board reported significant irregularities in the purchase of safety equipment and food supplies. It said protective items, including face masks, gloves, and sanitizers, which were estimated to cost about $281,000, ultimately cost $2.176 million, resulting in nearly $1.9 million in excess spending.

Irregularities in Electricity and Fuel Swap Records

The report also highlighted accounting discrepancies in the Ministry of Electricity related to fuel swap agreements with Iran. It identified audit differences amounting to 9.661 billion Iraqi dinars and discrepancies involving fuel shipments valued at $106.42 million.

In addition, a power transmission project in southern Iraq was delayed by 828 days without contractual penalties being imposed.

Billions in Uncollected Taxes

The Audit Board said the government failed to collect 231 billion Iraqi dinars in taxes linked to Shell's equity sales and the profits of foreign energy companies.

It also found that tax discrepancies between the Ministry of Oil and major taxpayers exceeded 388 billion dinars between 2018 and 2023. Separately, the Basra tax branch recorded revenue discrepancies worth 3.905 billion dinars related to Ibn Al-Bitar Hospital.

Budget Discrepancies

The report identified an overspend of 2.246 trillion Iraqi dinars in the 2017 federal budget, as well as 5.383 trillion dinars spent on investment allocations outside approved regulations.

For the 2019 budget, auditors reported a discrepancy of 8.293 trillion dinars between recorded external debt balances and official financial accounts.