Baghdad wants Lebanon to extradite two Iraqis accused of tax fraud

Iraqi officials reminded caretaker Justice Minister Henri Khoury on Thursday that Baghdad is attempting to repatriate two Iraqi nationals detained in Lebanon, accused of participating in the “heist of the century” involving the theft of approximately $2.5 billion from the Iraqi tax authority. A delegation of Iraqi officials, including anti-corruption network members Judge Haydar Hanoun and Iraq’s mission head to Lebanon Amine Nasraoui, met with Khoury, according to the National News Agency (NNA). Lebanese anti-corruption commission member Ali Badran also attended the meeting.

The meeting focused on “cooperation in fighting corruption through oversight committees in Lebanon and Iraq,” the NNA reported. Khoury highlighted the “brotherly relationship” between Lebanon and Iraq, noting Iraq’s recent approval to supply fuel to Lebanon’s public electricity provider. He mentioned discussions on “receiving funds from abroad and the repatriation of certain detainees.” Judge Hanoun informed Khoury that “two dangerous Iraqi detainees in Lebanon are accused of the so-called ‘heist of the century’ involving the theft from Iraqi tax administrations. We are trying to repatriate them.”

“The heist of the century”

An article published by The Guardian in November 2022 titled “The Heist of the Century: How $2.5 Billion Was Stolen from Iraqi Public Funds” detailed the theft, allegedly carried out with the help of Iraqi bureaucrats. Government documents from the summer of 2021, consulted by The Guardian, revealed that various governmental institutions canceled audits of withdrawals from Iraqi tax commission accounts, facilitating the theft.

The theft was labeled “the biggest corruption scandal under the then Iraqi Prime Minister Mustafa al-Kadhimi,” The Guardian noted. The stolen tax money was withdrawn by shell companies with minimal trace and laundered through real estate purchases in Baghdad’s wealthiest district, aided by corrupt officials, according to a 41-page internal investigation report seen by The Guardian.

Baghdad and Beirut vs. Corruption

Judge Hanoun also discussed broader anti-corruption cooperation between Baghdad and Beirut with Khoury. “This issue is not just about anti-corruption commissions but also requires the involvement of other authorities like the government and legislative institutions,” he stated. Hanoun emphasized that such cooperation should “reduce the extent of corruption and send a new message to the corrupt that justice will reach them.”