Monthly Spotlight: Barzani Corruption Year in Review

From the Barzani Watch Editorial Board – Every year, December 9^th marks the United Nations International Anti-Corruption Day, where the international community confronts challenges, tragedies, inequalities, and injustices tied to corruption. Barzani Watch marks the occasion by reviewing a selection of stories surrounding the Barzani family’s alleged corruption in 2024.

Iraqi Kurdistan’s ruling Barzani family in spotlight for alleged extortion – Medya News

A young member of the Barzani clan began the year on the receiving end of allegations of corruption. Three news outlets reported that Areen Masoud Barzani, the son of Prime Minister Masrour Barzani, was facing allegations of extortion. According to the reports, Areen was accused of coercing $5 million from Haj Ahmed, the owner of Majidi Mall in Erbil.

US court summons Iraqi Kurdistan PM Masrour Barzani over multiple charges – The New Arab

In January 2024, Prime Minister Masrour Barzani was summoned by the US District Court for the District of Columbia in relation to the Kurdistan Victims Fund lawsuit, an ongoing civil court proceeding filed against him and other members of the Barzani family. The 332-page complaint accused Masrour and his co-defendants, many of them also members of Kurdistan’s ruling Barzani family, of authorizing their agents to commit crimes including “extrajudicial killings, genocide, hostage taking and kidnapping, enforced disappearances, inhuman treatment, torture, rape, crimes against humanity, and multitudinous other unlawful and material acts”.

The case remains ongoing.

Foreign investment undermined by corruption risks in Iraqi Kurdistan – Diplomatic Courier

In April 2024, corruption was cited as a key factor undermining the investment climate in Kurdistan. In an opinion piece published by the Diplomatic Courier, Dr. Joel Ruet argued that Kurdistan, once considered a promising investment destination, faced challenges such as budget shortfalls, economic crisis, and political discord.

According to Dr. Ruet, despite Prime Minister Masrour Barzani’s Invest Kurdistan initiative to attract foreign investment, pervasive corruption and investor disputes hinder progress. The op-ed cites Sirwan Barzani’s company Korek refusing to pay a $1.65 billion damages award, following a ruling by a Paris arbitration tribunal which found that the company colluded with Iraqi authorities to unlawfully expropriate assets from French telecommunications company Orange and its joint venture partner Agility.

Kurdish oil smuggling to Iran flourishes – Reuters

In July 2024, Reuters published an investigation finding that oil smuggling from Kurdistan to Iran had boomed since 2023, with officials in the Barzani family’s Kurdistan Democratic Party reaping the benefits.

According to the report, more than 1,000 tankers were thought to be carrying at least 200,000 barrels of discounted oil every day to Iran and, to a lesser extent, Turkey. The trade was believed to be making about $200 million a month. The Reuters report added: “Twelve people said officials in Kurdistan’s two ruling parties, the Kurdistan Democratic Party (KDP) of the Barzani clan and the PUK of the Talabani clan, were the beneficiaries [of the smuggling].” It is not known whether the activity continues.

Postcard from Erbil – Private Eye

In August 2024, the United Kingdom’s leading news and current affairs magazine, described the Barzani family as a “mafia outfit dedicated to lining their own pockets.”

The Private Eye article stated that widespread corruption had allowed the family to amass significant wealth in the US, all while failing to pay Kurdistan’s civil servants, teachers and doctors, according to the magazine. The story also warned that efforts to diversify Kurdistan’s economy have been hindered by its treatment of international investors.

UNDP examines Kurdistan Region’s anti-corruption efforts – Rudaw

August 2024 also saw the publication of a report by the United Nations Development Programme (UNDP), the Human Rights Office of the United Nations Assistance Mission for Iraq (UNAMI), and the Judicial Council of the Kurdistan Region of Iraq, examining major corruption cases and efforts to combat corruption in Kurdistan.

According to the report, the “lack of corruption cases identified in the oil sector and related industries raises concerns regarding reporting and auditing mechanisms, given the sector’s crucial role in the KRI economy.” The UNDP added that “the rate of high-level defendants remains low, with few senior government officials being charged.”

The UK suburban homes where bribed Iraqi officials fled mobile phone corruption fallout – The National

In October 2024, an investigation in The National citing legal documents found that Sirwan Barzani and his company Korek Telecom had “bribed” officials at Iraq’s Communications and Media Commission (CMC) with two houses in London to ensure their support in defrauding Iraq Telecom.

The report named Ali Al Khwildi and Safa Rabee from the CMC as beneficiaries of a house each in 2016, one near the city’s iconic Wembley Stadium. An arbitration tribunal between Korek and Iraq Telecom – a joint venture between Kuwait’s Agility and France’s Orange – found that Sirwan Barzani and Korek “did bribe and corrupt CMC officials”, according to the National. The report added: “The two CMC officials are alleged to have enabled the expropriation of Iraq Telecom’s assets, the tribunal found.”