Integrity Commission opens probe into claims of withdrawal from social welfare fund

BAGHDAD — Iraq’s Federal Integrity Commission on Tuesday opened an investigation into widely circulated claims that 2.5 trillion dinars (about $1.78 billion) were withdrawn from the country’s Social Welfare Fund, moving to independently verify competing statements from the Labor Ministry, Finance Ministry and Rafidain Bank.

In its announcement, the commission said it had begun “investigative and verification procedures regarding the financial amounts deposited in the Social Welfare Fund,” and that its teams were examining reports about “the withdrawal of two and a half trillion dinars.” It added that assigned investigators have started “verification, investigation and auditing tasks” in line with legal procedures.

The inquiry follows a public dispute triggered by televised remarks from Labor Minister Ahmed al-Asadi. In the interview, al-Asadi said the fund had a balance of 430 billion dinars (about $307 million) when he took office, and that it had grown to roughly 2.53 trillion dinars (about $1.8 billion). He said that during a recent review, “we found that the two and a half trillion had all been withdrawn,” adding that a dispute arose between the Finance Ministry and Rafidain Bank, with “each side blames the other,” and alleging the funds were “used to buy bonds.” He said the ministry had filed a lawsuit.

The Labor Ministry later issued a clarification saying media had “misinterpreted” the minister’s comments, stressing that stipends for low-income families remain fully funded within the federal budget and that the issue he described related to liquidity at banks, not missing balances.

The Finance Ministry rejected any suggestion that money had been withdrawn, saying the account “was not withdrawn but the account was frozen only,” and insisting all funds remain intact. It said some deposits were made “outside its intended purpose,” but audits by the ministry and the Federal Board of Supreme Audit showed the balances were still present.

Rafidain Bank also denied that any withdrawals took place, saying its role is limited to holding accounts and executing official payment orders. It said the balance of the Social Protection Network account is 2.49 billion dinars (about $1.78 million), while the Social Protection Commission Fund account holds 390 billion dinars (about $278 million), and that “all these balances are fully available at the bank without any shortage or withdrawal.”

The dispute has intensified public concern about how social protection funds are managed. The program — established under Social Protection Law No. 11 of 2014 — provides monthly cash assistance to low-income families and vulnerable individuals. The Labor Ministry continues to say stipends are fully secured and paid on schedule.