Dhi Qar’s Reconstruction Fund: A $950M revival effort under fire for corruption allegations

Shafaq News/ Born from the Tishreen protests, the Dhi Qar Reconstruction Fund, with hundreds of millions of dollars in funding, was established to rebuild the “disaster-stricken” province in southern Iraq. Despite overseeing numerous projects, the fund is now facing corruption allegations, with some lawmakers accusing its management of financial violations.

Tishreen Protests and Dhi Qar Fund

The Tishreen protests, which erupted in October 2019, were a direct response to Iraq's reportedly deteriorating conditions, including widespread corruption, unemployment, human rights violations, and demands to remove corrupt political factions and reject foreign interference. These protests quickly gained momentum, mobilizing millions across the country for political change.

Under mounting public pressure, the government of Prime Minister Adil Abd Al-Mahdi resigned, and the Iraqi parliament was compelled to enact urgent reforms aimed at quelling public anger. These measures included plans to amend the Constitution and Electoral Law, as well as reducing the salaries of officials. However, the protests were met with violent clashes between security forces and demonstrators, leading to thousands of casualties.

In response to the aftermath of the protests, the Iraqi Council of Ministers, under PM Mustafa Al-Kadhimi’s government, declared Dhi Qar a “disaster-stricken province.” During an extraordinary session in 2020, the government announced the establishment of the Dhi Qar Reconstruction Fund, aiming to rebuild the province and address the challenges it faced following the upheaval of Tishreen.

A Budget of Over $900M

The Dhi Qar Reconstruction Fund has spent over one trillion Iraqi dinars (about $767 million) since its establishment in 2020, implementing hundreds of projects across the province, a source familiar with the matter told Shafaq News Agency.

"The budget of the Dhi Qar Fund has reached 1.25 trillion Iraqi dinars ($950 million)," the source said, adding that the amount has been allocated and spent over the past four years.

The fund has overseen 400 service projects in Dhi Qar, completing 250 so far, the source said. "Efforts are ongoing to complete the remaining 150 projects soon.”

Corruption Allegations

Iraqi MP Vian Dakhil, a member of the Parliamentary Integrity Committee, has sharply criticized the management of the Dhi Qar Fund after its head, Mohammed Jawad, was questioned over allegations of corruption and misuse of public funds in its projects.

"The questioning came after receiving reports from the Federal Board of Supreme Audit (FBSA) indicating financial violations in contracts, where an additional 10% is added to the value of each project," Dakhil stated to our agency. She further noted that "many of the contracting companies lack experience, financial capability, or guarantee letters."

Dakhil confirmed that Jawad had "questioned the validity of these reports," prompting the Integrity Committee to schedule another session to hear both sides and uncover the truth. "The committee will complete its investigation and submit a report to the Parliament Presidency for review…It will then be sent to the Prime Minister," she explained. "The case will be referred to the judiciary if necessary."

Unjustified Targeting

Dhi Qar MPs condemned what they described as an "unjustified targeting" of the fund. They voiced strong support for Iraqi Parliament oversight bodies, particularly the Integrity Committee while emphasizing the importance of addressing any potential issues through legal processes.

"We support all efforts aimed at identifying shortcomings and corruption within the fund's operations, provided that they adhere to legal and constitutional mechanisms," the MPs explained.

Reaffirming their backing for the fund's activities, the MPs highlighted its role in improving the province, calling it a key achievement for the people of Al-Nasiriyah, Dhi Qar's capital. "The fund must receive support, as endorsed by Prime Minister Mohammed Shia Al-Sudani," the MPs pointed out, affirming their commitment to resolve any related issues.

Moreover, they urged authorities to follow up on FBSA reports, which they believe can identify potential problems, emphasizing that any concerns raised by other lawmakers should be addressed directly with Dhi Qar representatives. “We respect the privacy of other provinces, and others should do the same.”

Political and Economic Motives

The mayor of Dhi Qar's Al-Fajr district, Mehdi Al-Morshidi, has denounced recent attacks on the fund, particularly from MPs outside the province. These lawmakers, he said, have made preemptive remarks despite never visiting Dhi Qar during their political careers. "These criticisms stem from political and economic motives and do not aim to benefit Dhi Qar or its people," Al-Morshidi told our agency.

Al-Morshidi highlighted the positive changes brought by the fund, pointing to significant improvements in services, infrastructure, healthcare, and even security. "Everyone has witnessed the transformation," he said. "For instance, 85% of the projects in Al-Fajr district and Maysalun subdistrict are funded by the Dhi Qar Reconstruction Fund."

He further noted that the fund has provided drinking water to areas more than 30 kilometers from the district center for the first time, with infrastructure in the city center now 95% complete. "By 2025, the district will have 100% integrated infrastructure," the mayor added, stressing that without the fund, "Al-Fajr would have been among the forgotten cities."

"Why are such statements being made now?" he asked, raising concerns about the timing of the criticism, particularly in light of the upcoming 2025 budget approval. "There are intentions to push Dhi Qar backward by controlling its resources and marginalizing its people, who have sacrificed their lives to preserve Iraq's unity and sanctities from north to south, without discrimination between ethnicities or sects,” he clarified.

Extortion

Former MP Abdul-Amir Al-Taiban defended Dhi Qar's fund, calling it "a rightful achievement, earned through the pure blood and efforts of MPs from the fourth parliamentary term." He commended its management for "excelling in implementing, monitoring, and completing projects within record timeframes."

Al-Taiban stressed the responsibility of Dhi Qar's people and MPs in safeguarding the fund from external pressures and extortion, which he described as “a widespread scourge hindering the successful and dedicated efforts."

"We will not allow any entity to target the fund's management.”