Iraq drops $280M vehicle deal over inflated costs

Shafaq News- Baghdad

Iraq’s Ministry of Defence has suspended the purchase of 800 cargo trucks after a review identified a $160 million price gap, a source familiar with the matter told Shafaq News on Monday.

The contract, signed with the General Company for Cars Trading, set the price of each vehicle at $350,000, while market comparisons found that similar models were priced between $120,000 and $150,000, leaving a difference of about $200,000 per unit.

“If the General Company for Cars Trading refuses to cancel the deal, the ministry will seek to renegotiate the prices,” the source added, noting that if no agreement is reached, the dispute will be referred to the courts.

The review also found that the cargo trucks did not fully meet the requirements of military formations, particularly the 25,000-liter tanker models. The ministry considers the selected models to be of lower technical quality than other available options, including Mercedes Actros, Scania, and Volvo models, which were not considered during the procurement process.

Launching an investigation into officials involved in reviewing and approving the contract, the ministry dismissed the director of the Audit and Oversight Directorate from his position over alleged lapses.