Oil Products Distribution Company: USD 135 million returned from two investment-company contracts, forged fuel cards and branch embezzlement (from 2019 to 2025)
The state-owned Oil Products Distribution Company, which sells fuel through depots and stations, was the subject of repeated Federal Integrity Commission actions. In September 2019 the commission said more than USD 135 million had been returned to the treasury after its review of the company's contracts with two investment companies; one company repaid or had deducted USD 85,492,886 over fuel it had used for power generation without supporting documents, a figure confirmed by the Federal Board of Supreme Audit. In April 2019 a Diyala court sentenced the former director of the Khanaqin oil depot in absentia to seven years for losses of more than IQD 600 million. In 2019 the commission also found IQD 2 billion paid to fictitious suppliers by the Basra purchasing committee and 14,756 forged fuel cards in Nineveh. In 2021 it arrested officials of the Kirkuk branch and issued warrants against 13 Wasit branch staff over missing gas oil, gasoline and oil. In March 2024 Parliament's Integrity Committee listed gas oil discrepancies in Kirkuk for 2019 to 2021, and in November 2025 a Nineveh station manager was detained over IQD 330 million.
- Period
- From April 2019 to November 2025
- Sector
- Oil and gasFuel distribution (state company branches, depots and stations)
- Kind of case
- Audit finding
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Fuel released without supporting documents, fictitious suppliers and receipts, forged fuel cards, unexplained shortages at depots, and station managers keeping sales proceeds, according to the Integrity Commission and Parliament's Integrity Committee.
What happened
USD 135 million returned (2019); one in-absentia sentence (2019); arrests in 2021 and 2025. Court outcomes of the 2021 and 2025 cases are not on record.
Open questions
- Names of the two investment companies and the contracts concerned.
- Court outcomes of the Kirkuk and Wasit branch cases.
- Whether the 2024 parliamentary findings were referred to the Integrity Commission.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Former director of the Khanaqin oil depot (name not given) المديرة السابقة لمستودع نفط خانقين (لم يُذكر اسمها) | Director of the Khanaqin oil depot, Oil Products Distribution Company | Convicted (reported) | Sentenced in absentia by the Diyala Second Felony Court to seven years for causing intentional damage of more than IQD 600 million through a large shortage of oil products at the depot, according to the Integrity Commission (14 April 2019). Described as a fugitive; judgment not seen. | 19 October 2026 |
| Kirkuk branch officials, Oil Products Distribution Company (names not given) مسؤولون في فرع كركوك لشركة توزيع المنتجات النفطية (لم تُذكر أسماؤهم) | Electronic control official, two government fuel station managers and two control officials | Arrested | Arrested by the Integrity Commission's Kirkuk office in January 2021 over legal breaches; the commission also reported five Kirkuk branch officials held over IQD 2.5 billion of waste. Outcome is not on record. | 19 October 2026 |
| Manager of a government fuel station in Nineveh (name not given) مدير محطة تعبئة وقود حكومية في نينوى (لم يُذكر اسمه) | Station manager under the Nineveh branch, Oil Products Distribution Company | Arrested | Detained in November 2025 under article 315 of the Penal Code over IQD 330,824,500 of fuel sales not paid to the company; part of the money was found at his home, according to the Integrity Commission. Outcome is not on record. | 19 October 2026 |
| Thirteen officials and employees, Wasit branch, Oil Products Distribution Company (names not given) ثلاثة عشر مسؤولاً وموظفاً في فرع واسط لشركة توزيع المنتجات النفطية (لم تُذكر أسماؤهم) | Managers, department and division heads, committee chairs and staff | Released on bail | Arrest and investigation orders under article 136 over 361,630 litres of gas oil, 99,750 litres of gasoline and 73,948 litres of oil; the investigating judge set bail of IQD 25 million each (February 2021). Outcome is not on record. | 19 October 2026 |
Sources
- Alsumaria News14 April 2019Integrity Commission statementTier B
النزاهة: السجن سبع سنوات لمدير مستودع نفط خانقين السابق
Original addressمحكمة جنايات ديالى الثانية، أصدرت حكماً غيابيا بالسجن لمُدَّة سبع سنواتٍ بحقِّ مديرة مستودع نفط خانقين سابقاً، لتسبُّبِهِا بإحداث ضررٍ عمديٍّ بأكثر من (600,000,000) مليون دينار بأموال ومصالح الجهة التي كانت تعمل فيها
- Alsumaria News5 May 2019Integrity Commission statementTier B
النزاهة تضبط تلاعباً وتزويراً بملياري دينارٍ في هيئة توزيع المنتجات النفطية بالبصرة
Original addressلجنة المشتريات والتجهيز المخزني أحالت المُشتريات إلى مُجهِّزين وهميِّين باستخدام وصولاتٍ وهميَّةٍ لمحلاتٍ غير موجودةٍ، وقامت بصرف مبلغ (2،000،000،000) ملياري دينارٍ
- Alsumaria News13 July 2019Integrity Commission statementTier B
النزاهة تضبط قرابة 15 ألف بطاقةٍ وقوديةٍ مُزوَّرةٍ في نينوى
Original addressقام بضبط (14,756) بطاقة وقودية مُزوَّرة وغير مطابقةٍ للمواصفات لدى لجنة استلام ومطابقة البطاقات الوقوديَّة بمنتوج النفط الأبيض المُجهَّز للمواطنين
- Alsumaria News18 September 2019Integrity Commission statementTier B
النزاهة تسترجع 135 مليون دولار لمصلحة وزارة النفط
Original addressبعقود شركة توزيع المنتوجات النفطية مع شركتين استثماريتين بلغ أكثر من (135,000,000) مليون دولار أمريكي
- Shafaq News26 January 2021Integrity Commission statementTier B
The Integrity Commission discloses the details of arresting Iraqi oil company officials
Original addressmanaged to arrest the electronic control official in the Oil Products Distribution Company, the Kirkuk branch, and the managers of two government fuel stations as well as two control officials, against the background of legal breaches.
- Shafaq News3 February 2021Integrity Commission statementTier B
The Integrity Commission arrests Thirteen employees in Wasit Oil Products Distribution Company
Original addressover a lawsuit related to the embezzlement of 361,630 liters of gas oil, 99, 750 liters of gasoline, and 73, 948 liters of oil.
- Alsumaria News8 March 2024Parliamentary documentTier B
النزاهة النيابية ترصد مخالفات وشبهات فساد بشركة توزيع المنتجات النفطية (وثائق)
Original addressعدم تطابق كميات زيت الغاز مع الكميات الموزعة في محافظة كركوك بين عامي 2019 الى 2021
- 964 Media3 November 2025Integrity Commission statementTier B
النزاهة تضبط مدير محطة وقود في نينوى اختلس أكثر من ربع مليار دينار
Original addressإقدام مدير المحطة على اختلاس أكثر من (330,824,500) ثلاثمائة وثلاثين مليون دينارٍ من مبالغ بيع المُنتجات الخاصَّة بالمحطة للأشهر آب وأيلول وتشرين الأول من العام الجاري
- Iraq Business News22 September 2019Press reportTier D
Commission of Integrity returns $135m to Oil Ministry
Original addressThe commission said that the company for the distribution of oil products misappropriated funds through contracts with two oil investment companies.
Related cases
- Deputy Oil Minister for Refining Adnan al-Jumaili: arrest and seizure of about $107m in cash, gold and property (2026)
- Subsidised fuel oil diverted via asphalt plants and smuggled through Basra (from 2022 to 2024)
- Rabia border crossing: former director general and three staff sentenced over 1,500 tankers of oil smuggled to Syria (2020)