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SOMO: Integrity Commission findings on USD 113.6 million of tanker delay costs and penalties, and MPs' accusations against its management (from 2017 to 2019)

On 6 June 2018 the Federal Integrity Commission published findings from a follow-up report on the State Organisation for Marketing of Oil (SOMO), sent to the Oil Minister's office. It said that delays in loading and unloading product tankers had cost SOMO USD 100 million in 2017, plus USD 13.62 million in penalties under crude service contracts. It said Basra crude quality was unstable, with each degree of lower density costing about USD 800,000 per tanker; that the same members kept sitting on the board and on the committees that renew crude contracts and propose price differentials; and that the inspector general's observer had not signed the minutes of the contract renewal committee. In September 2017 MP Mazen al-Mazani asked that former SOMO Director General Falah al-Amiri, relieved after more than nine years, be referred to the Integrity Commission. In January 2019 MP Odai Awad said Iraq was losing about USD 8 million a month from blending fuel oil into exports, criticised SOMO's answers under Director General Alaa al-Yasiri, and accused the Oil Minister of pressing the inspector general to stop an inquiry.

Period
From 2017 to January 2019
Sector
Oil and gasCrude and product export marketing (SOMO)
Kind of case
Audit finding
Jurisdiction
Federal Iraq

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.

Port and loading delays creating demurrage, unstable crude quality, the same officials sitting on the board and contract committees, and weak follow-up of earlier findings (Integrity Commission); blending fuel oil into exports (MP's accusation).

What happened

No charge against a named SOMO official is on record. Falah al-Amiri was relieved of his post in 2017.

Open questions

  • Whether the Integrity Commission's findings led to referrals to court.
  • SOMO's demurrage and penalty costs after 2017.
  • The full text of the follow-up report.

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.
People and companies
NameRole in the caseLegal statusDetailAs of
Falah al-Amiri
فلاح العامري
Director General, State Organisation for Marketing of Oil (SOMO), for more than nine years until 2017Accused by an official bodyNot charged as of the date of writing. MP Mazen al-Mazani of the oil and energy committee said in September 2017 that he had committed serious administrative and financial violations and asked that he be referred to the Integrity Commission and the courts. No referral or charge is on record.19 October 2026
Alaa al-Yasiri
علاء الياسري
Director General, State Organisation for Marketing of Oil (SOMO) (2019)Accused by an official bodyNot charged as of the date of writing. MP Odai Awad criticised SOMO's management under his leadership in January 2019, saying the committee hearing showed waste of public money and inaccurate answers; no charge is on record.19 October 2026

Sources

These are the documents on which this case rests. Each quote is given in the language of the document.
  1. Kurdistan24 (Arabic)23 August 2017Official statement reported by the mediaTier B

    نواب كورد يفتحون ملفات فساد نفطية و"سومو" ترد

    باستبدال مدير عام شركة تسويق النفط العراقية (سومو)، واصفا اياها بـ"القلعة المغلقة" التي لا يُعرف شيئاً عن الصفقات المالية التي تبرمها بصورة سنوية
    Original address
  2. Alsumaria News10 September 2017Official statement reported by the mediaTier B

    عضو بالطاقة النيابية يطالب بإحالة مدير "سومو" السابق إلى النزاهة

    بإحالة مدير عام شركة "سومو" المعفي من منصبه فلاح العامري إلى هيئة النزاهة والقضاء، عازياً ذلك الى "ارتكابه" مخالفات إدارية ومالية تسببت بـ"إضرار" على الاقتصاد العراقي
    Original address
  3. Alsumaria News6 June 2018Integrity Commission statementTier B

    النزاهة: تأخر تحميل وتفريغ ناقلات النفط يكلف سومو غرامات تبلغ 100 مليون دولار

    التأخير الحاصل في تحميل وتفريغ الناقلات الخاصة بالمشتقات النفطية كلف شركة سومو خلال عام 2017 مبلغ 100 مليون دولارٍ، إضافة إلى 13 مليون و620 الف دولارٍ كغراماتٍ ماليةٍ على الشركة فيما يخصُّ عقود الخدمة للنفط الخام خلال المدة ذاتها
    Original address
  4. Al-Aalem Al-Jadeed6 June 2018Integrity Commission statementTier B

    النزاهة: تأخر تحميل وتفريغ ناقلات النفط يكلف {سومو} غرامات أكثر من 100 مليون دولار

    شخَّص الفريق في تقرير {المتابعة} المرسلة نسخةٌ منه إلى مكتب وزير النفط، استمرار التذبذب الكبير في نفط خام البصرة، وعدم استقرار المواصفات النوعية
    Original address
  5. Alsumaria News10 January 2019Official statement reported by the mediaTier B

    نائب: جمع تواقيع لاستجواب وزير النفط على خلفية إخفاء ملفات فساد سومو

    التي كشفنا عنها في الإعلام والتي يخسر الشعب العراقي بسببها 8مليون دولار شهريا، بسبب خلط النفط الأسود مع الأبيض
    Original address
  6. Alsumaria News22 January 2019Official statement reported by the mediaTier B

    عواد: تم طرح مخالفات وادلة تثبت هدر المال العام خلال استضافة مدير شركة سومو

    تم اليوم استضافة مدير عام شركة سومو وعدد من رؤساء الاقسام بالشركة، وتم طرح جميع المخالفات والادلة التي تثبت الهدر الكبير في المال العام، حيث كانت الاجابات غير دقيقة ومتخبطة
    Original address

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