Integrity Commission says Social Welfare Fund remains intact after audit

BAGHDAD — Iraq’s Federal Integrity Commission said Tuesday that the full 2.5 trillion dinars (about $1.76 billion) rumored to have vanished from the Social Welfare Fund is present in the account, concluding an investigation triggered by widespread claims that the money had been withdrawn.

The commission said it formed a fact-finding team “immediately after wide circulation of information in the media and on social platforms” alleging that the fund had been emptied. It said investigators conducted “expanded auditing and investigation,” reviewing financial records, official correspondence and administrative exchanges between the Finance Ministry, Labor Ministry, Rafidain Bank and the Federal Board of Supreme Audit. The findings showed “clearly and conclusively” that none of the money “was withdrawn, spent or transferred” and that the entire amount remains in account number 568 belonging to the Labor Ministry’s Social Protection Authority.

The commission said the account is now under “strict monitoring measures” designed to separate Finance Ministry transfers from revenues generated by the Labor Ministry, in line with Social Protection Law No. 11 of 2014. It said the inquiry was conducted under direct judicial supervision and pursuant to Integrity Commission Law No. 30 of 2011.

The probe was opened on Nov. 24 after televised remarks by Labor Minister Ahmed al-Asadi ignited public concern. Al-Asadi said the fund contained 430 billion dinars (about $303 million) when he took office, and that its capital later reached 2.53 trillion dinars (about $1.78 billion). He then said his ministry found “the two and a half trillion had all been withdrawn,” describing a dispute between the Finance Ministry and Rafidain Bank and claiming the money “was used to buy bonds.”

The Labor Ministry later said media misinterpreted the comments and that stipends for low-income families remain fully financed through the federal budget. The Finance Ministry said no funds had been removed and that the account “was not withdrawn but the account was frozen only,” insisting the balances remained intact. Rafidain Bank also rejected any suggestion of withdrawals, saying the Social Protection Network account holds 2.49 billion dinars (about $1.75 million) and the Social Protection Commission Fund holds 390 billion dinars (about $274 million), with “all these balances fully available at the bank without any shortage or withdrawal.”