Korek Telecom: ICC arbitration finding fraud and corruption against Korek and Sirwan Barzani, and the regulator's 2026 asset seizure
In March 2011 Kuwait's Agility and France Télécom/Orange (through Iraq Telecom Ltd) invested about $810m for a stake in Korek Telecom, the Erbil-based mobile operator founded by Sirwan Barzani. After Iraq's Communications and Media Commission (CMC) reversed the ownership transfer, the investors alleged fraud, sham loans and bribery of regulators. In March 2023 the ICC International Court of Arbitration found Korek and Sirwan Barzani liable for fraud and corruption and awarded $1.65bn in damages to Iraq Telecom and International Holdings; in September 2024 Agility announced a further award of nearly $1.2bn. Separately, over unpaid licence obligations the CMC blocked Korek's interconnection (November 2023), cancelled a June 2025 settlement and on 9 August 2026 ordered seizure of all Korek's movable and immovable assets and suspension of its network.
- Period
- From March 2011 to August 2026
- Sector
- TelecommunicationsMobile operator ownership and licence obligations
- Kind of case
- Civil case or arbitration
- Jurisdiction
- More than one jurisdiction
How the money moved
Alleged diversion of company assets, sham loans and bribery of regulators to strip foreign investors of their stake; non-payment of licence fees to the state.
What happened
Arbitral liability (civil); regulatory seizure in 2026; enforcement of awards uncertain.
Open questions
- Enforcement of the ICC awards; Iraqi criminal follow-up on alleged bribery of CMC officials.
- Amount of licence fees owed by Korek to the state.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Sirwan Barzani سيروان بارزاني | Founder and controlling shareholder of Korek | Found liable (civil) | Found liable for fraud and corruption in ICC arbitration (March 2023, as reported); no criminal conviction. | 25 September 2026 |
| Korek Telecom شركة كورك تيليكوم | Mobile operator (Erbil) | Found liable (civil) | ICC awards 2023/2024; CMC ordered asset seizure and network suspension (9 August 2026). | 25 September 2026 |
Sources
- Developing Telecoms (James Barton)22 March 2023Press reportTier D
ICC finds Korek liable to pay damages to Iraq Telecom
Originalaccused Korek Telecom and its controlling stakeholder Sirwan Barzani of corruption and fraud
- Iraq Business News (Agility statement)17 September 2024Press reportTier D
Korek ordered to pay Agility $1.2bn
Originalrelates to allegations of fraud and corruption orchestrated by Korek
- Shafaq News9 August 2026Press reportTier D
Korek Telecom faces complete operational shutdown
Originalincluding seizure orders for its movable and immovable assets and preparations to suspend its network operations
- English Wikipedia25 September 2026Press reportTier D
Korek Telecom
OriginalOn 9 August 2026, CMC cancelled the aforementioned agreement and ordered the full seizure of all movable and immovable assets belonging to Korek.