At a Glance:

• CMC Head Baligh Abu Kilel affirmed that regulatory actions against Korek Telecom are purely technical and legal.
• Korek Telecom's commercial operating license officially expired in 2022 without renewal.
• The company owes 2 trillion IQD in regulatory fees, 2 trillion IQD in taxes, and $1 billion in external debt.
• The CMC extended an eight-month grace period for debt restructuring, which Korek failed to satisfy.

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The Head of Iraq’s Communications and Media Commission (CMC), Baligh Abu Kilel, rejected claims that regulatory enforcement against Korek Telecom is politically motivated. Speaking at a press conference, Abu Kilel clarified that the mobile operator's operating status is a purely technical and financial dispute resulting from expired licensing and unfulfilled debt-settlement agreements totaling billions of dollars.

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Key Statements and Focus Area:

• Rejection of Politicization:"It is wrong to politicize Korek's issues. The political group I belong to is the Al-Hakim family, and everyone knows that the relationship between the Al-Hakim and Barzani families is excellent." — Baligh Abu Kilel, Head of Iraq's Communications and Media Commission.
• Financial Default and Broken Agreements:"There was an agreement with Korek to settle its debts, but Korek failed to comply. We waited eight months for the company to fulfill its commitments, but to no avail." — Baligh Abu Kilel, Head of Iraq's Communications and Media Commission.

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License Expiration and Accumulation of Liabilities

The CMC confirmed that Korek Telecom has been operating without a valid commercial license since its formal expiration in 2022. According to regulatory disclosures presented by Abu Kilel, the operator’s outstanding obligations include:

• 2 Trillion IQD in unpaid regulatory fees owed directly to the Communications and Media Commission.
• 2 Trillion IQD in accumulated tax liabilities to the Ministry of Finance.
• $1 Billion in unresolved external debts and international commercial obligations.

Eight-Month Grace Period and Breach of Contract

Addressing the legal process, the CMC chief noted that regulatory authorities offered Korek a debt-settlement agreement to restructure its outstanding payments over an eight-month period. Following the company’s failure to meet the agreed-upon payment schedules within that timeframe, the regulator initiated formal enforcement measures to protect public revenue and sector compliance.

FYI

The CMC’s enforcement action reflects broader effort by federal regulatory bodies to enforce financial accountability and tax compliance across Iraq's telecommunications sector. By publicly separating regulatory oversight from political ties, the commission aims to signal a strict legal approach toward major corporate debtors while maintaining market standards across the country's mobile network infrastructure.

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