Iraq oil official flees after bribe allegations

A senior official at Iraq' South Oil Company has fled the country after being accused of taking bribes. The unnamed official allegedly took money from a subsidiary of Leighton Holdings Ltd, the Australian construction firm, to secure contracts in the south of Iraq.

The Inspector General of Iraq's Oil Ministry, Hilal Ismael, launched an investigation after Leighton alerted the Australian police that Leighton Offshore, one of its subsidiaries may be involved in corrupt practices. Specifically, the company was reputed to be receiving advance details of rival bids so that they could submit a lower price.

The company has won several multi-million dollar bids over the past few years. Last year it won a $518 million contract from SOC to develop two offshore platforms, a pipeline to the Fao export terminal, and a single point mooring system.

On 5 March an Iraqi MP announced that the investigation was now focused on the unnamed department head for accepting bribes, who fled the country.

One official in the Oil and Gas Ministy told media that it would be no surprise if the company had paid kickbacks to officials. “It has become very difficult to do business in Iraq without making payments,” he said. Although the case may only represent the tip of the iceberg, it does at least demonstrate a willingness on the part of Iraqi authorities to go after corrupt officials.

Sources: Rigzone, Wall Street Journal