Cases
Muhandis General Company: US designation for diverting Iraqi government contract funds to Kata'ib Hizballah (2025)
On 9 October 2025 OFAC designated the Muhandis General Company, a state-owned company established in February 2023 at the initiative of the Popular Mobilization Forces, and its front Baladna Agricultural Investments. Treasury said the company is controlled by PMF chief of staff Abu Fadak al-Muhammadawi (Kata'ib Hizballah) and "uses a sub-contracting method to divert funds from Iraqi government contracts", facilitating the award of contracts in exchange for illicit revenue.
- Period
- From February 2023 to October 2025
- Sector
- Political finance and sanctionsState-owned PMF-linked conglomerate and public contracts
- Kind of case
- Sanctions designation
- Jurisdiction
- More than one jurisdiction
How the money moved, according to the sources
This account is the one given by the sources listed on this page. It is not the finding of a court.
A state company is awarded government contracts and subcontracts them, retaining a cut for an armed group; contracts are steered to companies that pay kickbacks.
What happened
Designation in force; no Iraqi legal action known.
Open questions
- Value and list of government contracts awarded to the company (Iraqi contract registers).
People and companies
The table lists everyone this case names, with their legal status on the date shown. A status in this case does not carry over to any other case, and an accusation is not a conviction. How to read the status.
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Abd al-Aziz al-Muhammadawi (Abu Fadak) عبد العزيز المحمداوي (أبو فدك) | PMF chief of staff; Kata'ib Hizballah leader (previously US-designated) | Under sanctions | Named by Treasury as controlling the company. | 25 September 2026 |
| Muhandis General Company شركة المهندس العامة | State-owned company | Under sanctions | Placed on the US Treasury sanctions list on 9 October 2025 under Executive Order 13224, which concerns the financing of terrorism. | 25 September 2026 |
| Baladna Agricultural Investments بلدنا للاستثمارات الزراعية | Commercial front | Under sanctions | Placed on the US Treasury sanctions list on 9 October 2025 under Executive Order 13224, which concerns the financing of terrorism. | 25 September 2026 |
Sources
These are the documents on which this case rests. Each quote is given in the language of the document.
- US Department of the Treasury9 October 2025Sanctions noticeTier A
Treasury Takes Aim at Iran-Backed Militia Groups ... (sb0277)
OriginalSHA-256 2012e8116a41OFAC is designating three Iraqi bank executives today for abusing their positions within Iraq’s commercial banking sector
uses a sub-contracting method to divert funds from Iraqi government contracts