Official statement

Iraq’s integrity commission arrests five Rafidain bank employees for alleged embezzlement

2024-08-20 | 19:33

KARBALA — Iraq’s Federal Commission of Integrity announced on Tuesday the arrest of five employees from the Rafidain Bank’s Hussainiyah branch in Karbala, including the former branch manager, for their alleged involvement in embezzling one billion IQD ($763,000).

The commission stated that a 21-day audit revealed the organization of fraudulent loans for car purchases. The repayment dates for these loans coincided with official holidays, raising further suspicions and contributing to the discovery of the embezzlement.

Below is the statement from the commission detailing the operation:

The Integrity Commission: Arrest of 5 employees in a government bank in Karbala for embezzling one billion dinars.

The former bank manager was arrested at his residence in Babil Governorate.

The Federal Commission of Integrity revealed the embezzlement of more than one billion dinars from a branch of a government bank in Karbala, stating that the former bank manager and four other employees were arrested for their involvement in the embezzlement.

The Office of Media and Government Communication indicated that information was received regarding the Rafidain Bank – Hussainiyah branch granting car loans without contracts between the bank and borrowers, and cases of embezzlement of paid installments were found. A team from the Karbala Investigation Office was formed and moved to the mentioned bank to audit the borrower files, guarantor forms, loan contracts, receipts, daily reconciliation records, and the relevant electronic program.

The media office explained that the audit lasted for 21 days, during which 2,413 files were reviewed. It was found that five employees, including the former bank manager, embezzled 1,034,682,625 dinars by organizing fraudulent car loan transactions. The amounts paid by borrowers appeared only in the calculator’s records, with no trace in the daily ledger, and no receipts or daily reconciliation records were found, indicating that the payments were fictitious.

The office added that the audit revealed that the fictitious repayment dates coincided with official holidays. It also mentioned that the audit related to these embezzlements concerns only one of nine cases involving the same bank, which are under review and awaiting completion before being presented to the judiciary

The office continued that the external audit division in the Karbala Investigation Office reported violations and cases of embezzlement, which were presented to the relevant judge, who issued an arrest warrant for the suspects under Article 315 of the Penal Code. The arrest warrant was executed against four suspects, while the fifth suspect (the bank manager) was apprehended at his residence in Babil Governorate, following coordination with the judge of the Integrity Investigation Court and the commission’s investigation office in the governorate. The operation also secured the 2,413 files under review.