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Tishwash:  Mulla Talal: More than 20 officials have been arrested on charges of financial and administrative corruption

Prime Minister Ahmed Mulla Talal’s spokesman announced today, Tuesday, that the government has implemented 20 arrest warrants for officials accused of financial and administrative corruption.

“The forces managed to arrest more than 20 officials accused of financial and administrative corruption,” Mulla Talal said in a press conference followed by Al-Akhbariya.

He added, “19 officers and security officials have been arrested who fired rockets from the cutters of their previous responsibility,” stressing that “the security forces arrested a number of the rocket launchers.”  link

Tishwash:  Iraqis Store $ 28 Billion In Their Homes: A Crisis of Trust in Banks

Experts and representatives in the Iraqi parliament estimate the size of the cash block that the people have in their homes at about 35 trillion Iraqi dinars, (equivalent to 28 billion dollars), accumulated due to poor confidence in the banking sector, and modest procedures that enable them to access their money at any time with repeated official holidays And increase security measures.

The collapse of the banking sector in Lebanon came to reinforce this conviction among Iraqis recently about avoiding depositing in banks and leaving them in their homes in safe concealment ways or transferring their savings to countries that are more financially stable.

The deputy in the Iraqi parliament, Riyad Al-Masoudi, told Al-Arabi Al-Jadeed that “the monetary mass in the local currency is very large, reaching 100 trillion dinars, of which about 35 trillion dinars (the dollar = 1222 dinars) exist with the people, even if there is a banking system and trust Mutual security and political stability in the country would have been about 90 percent of these funds now deposited in banks.

He added, “If these funds are deposited in banks, the government will be able to invest these funds in important projects, such as roads, ports, housing and infrastructure.”

According to Al-Masoudi, “The biggest problem is that the cash block in the private Iraqi banks was killed by the government, as it borrowed from it to pay salaries to employees and retirees, and there are currently many Iraqi banks that are unable to lend to the government because they do not have cash blocks that enable them to continue if they provide the required loans.” In light of the continuing financial crisis, “noting that the problem is the lack of a significant system to control the movement of money in the country

With the intensification of the financial crisis in Iraq following the collapse of oil prices, the government has tended to borrow from local banks to finance the operating budget, such as paying salaries for retirees, employees, and the military, the social welfare network, and necessary expenditures such as financing power and water stations and military operations against terrorism, which total an estimated 7 trillion dinars per month.

Parliament approved this for the government by voting on the government’s internal and external borrowing law, but the Al-Kazemi government has not yet borrowed from abroad and has continued to borrow from banks, amid fears that banks will not be able to meet the government’s need for long loans.

Earlier, the Central Bank of Iraq called on citizens to deposit their money in banks instead of keeping them in homes and companies. 

Member of the Finance Committee in the Iraqi Parliament, Ahmad Mazhar al-Jubouri, described the trust between the citizen and the government as “zero,” adding in an interview with “Al-Araby Al-Jadeed”, that “past periods, and through many experiences between citizens and the government, have generated this situation, and today if I had An amount of 10 billion dinars, for example, and I deposited it in the bank. When I try to withdraw it, I will not be able to do so on the same day or soon.

He continued: “Yes, there is a crisis of confidence, and it is not emerging today or yesterday, but from 2004 until today, as there is a problem between the citizen, the government and the political process. The citizen has completely lost confidence in the government, politicians and even employees, so I think that the current stage is critical and we need not a short while to be able to.” The government will restore confidence with the Iraqi people. “

A former director of one of the Iraqi bank branches in Baghdad, Ali Al-Saffar, confirms to Al-Arabi Al-Jadeed that there is a current crisis with several important banks in providing cash to the government that requests it to pay the salaries of employees.

He adds that there are decisions that have caused citizens to refrain from depositing what they have in banks, including that their money cannot be withdrawn once, but in several installments, and may be at long intervals.

He continued: “Most of the private banks today are either affiliated with influential political parties or personalities, and there are a number of them that are under US sanctions or under the tutelage of the Central Bank due to their bankruptcy, so Iraq actually, despite the presence of dozens of banks, there are only seven or eight private banks in it that are reliable. , In addition to government-owned Rashid and Rafidain bankers.

Citizens expressed their concerns about the banking sector due to a number of conditions, which they said prevented their confidence in it. According to citizen Amira Hassan, she prefers to leave any amount in her home and keep it in a safe way in foreign currency, dollars, or local ones, rather than leaving it in the bank, because of a previous disturbing experience for her, as she deposited an amount of money, and when she decided to buy a house, the bank refused to give her the full amount once One, but its installment over several months in installments.

Amira Hassan considers that despite fears of theft and armed robbery gangs, keeping the money in a controlled way at home remains the most appropriate for the citizen.  link