Defence Ministry contract for 800 trucks from the state car trading company: court investigation and payments stopped on an IQD 462 billion contract (2026)
Contract No. Defence/Contracts/96 between the Ministry of Defence and the General Company for Automotive Trade and Machinery, a company of the Ministry of Trade, was for 800 trucks with specialised bodies worth IQD 462 billion (about USD 353 million). On 25 June 2026 Sherwan Dubardani, a member of Parliament's security and defence committee, told Rudaw that a court was investigating the contract because its prices had been inflated, and Rudaw reported a document notifying the ministry that an investigation had begun. On 6 and 7 July Iraqi outlets described a document of the Karkh Second Investigation Court, signed by Judge Diyaa Jaafar, directing the defence minister's office to stop payments under the contract until the investigation ended, after preliminary reports of overpricing. On 6 July a ministry source told Shafaq News that the ministry had decided to seek cancellation of the contract and had told its supply and transport directorate not to accept the MAN trucks. The source put the overpricing at about USD 160 million, at USD 350,000 a truck against a market price of USD 120,000 to 150,000, and said the ministry had relieved its audit director and formed an investigative committee.
- Period
- From June 2026 to July 2026
- Sector
- Defence and securityVehicle procurement (army trucks)
- Kind of case
- Criminal prosecution
- Jurisdiction
- Federal Iraq
How the money moved
Purchase of military trucks through a state trading company at prices well above market prices, which the ministry's audit and pricing bodies did not flag (as alleged).
What happened
Payments stopped by court order pending the investigation (reported July 2026); the ministry was reported to be seeking cancellation or a price revision. No charge or verdict reported as of 19 October 2026.
Open questions
- The court's findings and any persons charged.
- Whether the contract was cancelled or repriced.
- The private supplier behind the company's offer, which some outlets mentioned only by initials.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| General Company for Automotive Trade and Machinery الشركة العامة لتجارة السيارات والمكائن | State company of the Ministry of Trade; supplier under contract Defence/Contracts/96 for 800 trucks | Under investigation | The Karkh Second Investigation Court is investigating contract Defence/Contracts/96 between the Ministry of Defence and the company and directed the minister's office to stop payments until the investigation ends (court document described by the press on 6 and 7 July 2026). A Defence Ministry source said the company's offer was overpriced by about USD 160 million. Not charged as of 19 October 2026; no comment from the company is on record. | 19 October 2026 |
Sources
- Kitabat6 July 2026Official statement reported by the mediaTier B
بعد القرار القضائي بإيقاف الصرف .. من هي الشركة التي تقف وراء عقد تجهيز الشاحنات لـ"الدفاع" العراقية ؟
Original addressالمحكمة تُجري تحقيقًا في المخالفات المتعلقة بالعقد المرقم (دفاع/ عقود/ 96)، والخاص بتجهيز الوزارة: بـ (800) شاحنة مع الجزء التخصصي، والبالغة قيمته: (462) مليار دينار عراقي
- Iraq News Network (aliraqnews.com)7 July 2026Official statement reported by the mediaTier B
462 مليار دينار تتوقف عند بوابة القضاء.. شاحنات الدفاع تدخل نفق التحقيق
Original addressوجّهت محكمة تحقيق الكرخ الثانية بإيقاف صرف المستحقات المالية الخاصة بالعقد المبرم بين وزارة الدفاع والشركة العامة لتجارة السيارات والمكائن
- Rudaw (English)25 June 2026Press reportTier D
Oil ministry corruption scandal is 'political purge,' not genuine effort: MP
Original addressan Iraqi court is investigating a defense ministry contract purchase of 800 trucks, on the grounds that their prices were inflated to 462 billion dinar (around $353 million)
- Shafaq News (Arabic)6 July 2026Press reportTier D
بسبب "غبن فاحش" بـ160 مليون دولار.. الدفاع العراقية تفسخ عقداً لشراء مركبات حمل
Original addressقررت السير بإجراءات فسخ عقد مع الشركة العامة لتجارة السيارات الخاص بتجهيز بـ800 مركبة حمل، مبيناً أن العقد تضمن "غبناً فاحشاً ومغالاة بالأسعار" تقدر بنحو 160 مليون دولار