Electricity Minister Raad Shallal dismissed over $1.7bn contracts with a non-existent Canadian firm and a bankrupt German firm (2011)
In July 2011 Electricity Minister Raad Shallal al-Ani signed contracts reported at $1.2bn with Capgent (Canada) and $500m with Maschinenbau Halberstadt (Germany). A review led by former planning minister Jawad Hashem reported that the first company did not exist and the second had gone bankrupt months earlier; PM Maliki removed Shallal in August 2011. On 28 and 29 September 2011 he was arrested on an Integrity Commission order (his party said for failing to answer a subpoena) and released after pledging to testify; his party said the contracts had also been signed off by the PM and Deputy PM for Energy Hussain al-Shahristani. A parliamentary committee said it had evidence of corruption in at least 17 ministry contracts.
- Period
- From July 2011 to September 2011
- Sector
- Electricity and energy infrastructurePower-plant contracts
- Kind of case
- Criminal prosecution
- Jurisdiction
- Federal Iraq
How the money moved
Contracts awarded without due diligence to shell or insolvent companies, with advance payments or guarantees at risk.
What happened
Minister dismissed; brief arrest; no conviction is on record; contracts reportedly cancelled or re-tendered.
Open questions
- Final court/Integrity outcome for Shallal and ministry officials.
- Were advance payments made to either company?
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Raad Shallal al-Ani رعد شلال العاني | Minister of Electricity (from February to August 2011) | Released on bail | Dismissed August 2011; arrested on Integrity Commission order 28/29 September 2011 and released the same day on a pledge to testify; later outcome is not on record. | 25 September 2026 |
| Capgent (Canada) كابجنت (كندا) | Contractor | Not charged as of the date of writing | A review by Jawad Hashem, as described by Wikipedia, reportedly found the company did not exist. The review itself has not been cited, so. No charge, court ruling, sanction or official finding is on record in the sources read. | 30 September 2026 |
| Maschinenbau Halberstadt (Germany) ماشينينباو هالبرشتات (ألمانيا) | Contractor | Not charged as of the date of writing | Reported to have been bankrupt before the contract was signed. That is not an accusation against the company. | 30 September 2026 |
Sources
- AKnews (archived)29 September 2011Press reportTier D
Former Electricity Minister Shallal released on vow to testify
OriginalFormer Electricity Minister Raad Shallal was released from jail today
- Your Middle East (AFP)30 September 2011Press reportTier D
Iraq police arrest ex-electricity minister
OriginalArchived copyRaad Shallal was arrested by an order from the Commission of Integrity
- English Wikipedia25 September 2026Press reportTier D
Raad Shallal al-Ani
Originalfound that the first company did not exist and the second had entered bankruptcy six months before signing the contract