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electricity ministry squanders $27bn
08/08/2011 12:52
Baghdad, Aug. 8 (AKnews) - The Electricity Ministry has wasted $27bn in its contracting with companies in the development of electric power, the Integrity Committee of the Iraqi Parliamentary revealed today.
Committee member Aliya Nassif told AKnews that the "committee received a detailed report from the Finance Ministry that admits the ministry wasted $27bn in contracting with foreign companies while electric power is still poor."
"The Minister of Electricity was not informed about many of the contracts signed by his ministry. The minister of electricity has exceeded the allowed number of contracts specified by the Cabinet without referring to Prime Minister Nuri al-Maliki."
State of Law Coalition (SLC) deputy Hanan al-Fatlawi told AKnews on Saturday that the Ministry of Electricity signed contracts - worth a total of $1.7 billion - with two fake companies to build power plants in Iraq.
Fatlawi said that the companies had been discovered to be non-existent by Iraq’s former planning minister Jawad Hashem after conducting his own investigation into the contracts. On August 2 Hashem sent a letter to Prime Minister Nouri al-Maliki outlining the details of his findings.
Prime Minister Nuri al-Maliki decided late on Sunday night to dismiss the Electricity Minister Raad Shallal from his position and to refer his case to parliament to vote on the dismissal.
On July 6, the Ministry of Electricity announced the signing a contract with German company "MBG" worth $625 million to build five power stations within 12 months. The ministry also signed a contract with a Canadian company called "Cup Gent" to build ten more power 1.66 billion dollars in an effort to tackle the energy shortage in the country.
But accusations that the companies are not eligible to implement these contracts has sparked debate amid unclear reports about Maliki's delay in dismissing the Minister of Electricity
The demand for electricity is estimated by about 14,000 megawatts during the summer but Iraq only currently produces around 8,000MW. There are plans to increase the capacity to 27,000 megawatts in four years, but experts have cast doubt on the likelihood of hitting this target.
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08/08/2011 12:52
Baghdad, Aug. 8 (AKnews) - The Electricity Ministry has wasted $27bn in its contracting with companies in the development of electric power, the Integrity Committee of the Iraqi Parliamentary revealed today.
Committee member Aliya Nassif told AKnews that the "committee received a detailed report from the Finance Ministry that admits the ministry wasted $27bn in contracting with foreign companies while electric power is still poor."
"The Minister of Electricity was not informed about many of the contracts signed by his ministry. The minister of electricity has exceeded the allowed number of contracts specified by the Cabinet without referring to Prime Minister Nuri al-Maliki."
State of Law Coalition (SLC) deputy Hanan al-Fatlawi told AKnews on Saturday that the Ministry of Electricity signed contracts - worth a total of $1.7 billion - with two fake companies to build power plants in Iraq.
Fatlawi said that the companies had been discovered to be non-existent by Iraq’s former planning minister Jawad Hashem after conducting his own investigation into the contracts. On August 2 Hashem sent a letter to Prime Minister Nouri al-Maliki outlining the details of his findings.
Prime Minister Nuri al-Maliki decided late on Sunday night to dismiss the Electricity Minister Raad Shallal from his position and to refer his case to parliament to vote on the dismissal.
On July 6, the Ministry of Electricity announced the signing a contract with German company "MBG" worth $625 million to build five power stations within 12 months. The ministry also signed a contract with a Canadian company called "Cup Gent" to build ten more power 1.66 billion dollars in an effort to tackle the energy shortage in the country.
But accusations that the companies are not eligible to implement these contracts has sparked debate amid unclear reports about Maliki's delay in dismissing the Minister of Electricity
The demand for electricity is estimated by about 14,000 megawatts during the summer but Iraq only currently produces around 8,000MW. There are plans to increase the capacity to 27,000 megawatts in four years, but experts have cast doubt on the likelihood of hitting this target.
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