Protesters shout slogans during an anti-government demonstration against the provision of jobs and the alleged government corruption, in Tahrir Square in central Baghdad in 2019. Reuters
Protesters shout slogans during an anti-government demonstration against the provision of jobs and the alleged government corruption, in Tahrir Square in central Baghdad in 2019. Reuters

Mastermind of Iraq’s 'heist of the century' sentenced to 10 years in prison



A Baghdad court on Monday sentenced the mastermind of Iraq’s “heist of the century”, in which billions of dollars were stolen from the state, to 10 years in prison.

Businessman Noor Zuhair Jassim was sentenced in his absence and remains at large. The case, which has captivated the public for two years, centred on about $2.5 billion being taken from Iraq's General Commission for Taxes, a department of the Ministry of Finance.

The money was fraudulently paid to five companies by the commission using 247 cheques between September 2021 and August 2022. The funds were taken from the commission's account at the state-run Rafidain Bank, a government investigation found.

It was deposited by trading companies and people as a guarantee to pay taxes after finishing projects commissioned by the government or importing goods. Those who deposited the money could later apply to withdraw what was left, after deducting tax.

After failing to appear in front of judges four times, Jassim was convicted and sentenced by Al Karkh Criminal Court, Iraq’s Supreme Judicial Council said.

The court also sentenced Judge Raid Juhi, who presided over Saddam Hussein's trial and was a director of former prime minister Mustafa Al Kadhimi's office, to six years in prison. A former legislator, Haitham Al Jubouri, was sentenced to three years in jail.

The Supreme Judicial Council also said “several employees involved in the crime” were given six-year terms. Politician Mustafa Sanad, who attended the trial, said 10 employees were sentenced, including a former general director of the General Commission for Taxes and his deputy.

The court ordered the confiscation of assets belonging to Jassim, Juhi and Al Jubouri, Mr Sanad added. Iraq will ask Interpol to help track down the three men.

The case was announced in October 2022 by Ihsan Abdul Jabbar, Iraq’s acting finance minister and oil minister at the time. Shortly afterwards, Jassim was arrested at Baghdad International Airport as he attempted to leave the country on a private jet. He later admitted to stealing 1.618 trillion Iraqi dinars ($1.23 billion) and returned 182 billion dinars.

He was released on bail after an agreement was reached with the court to return the full amount. But he later left Iraq and remains at large.

Jassim, 44, in an interview with an Iraqi satellite TV channel in August, said he acted as a debt buyer. He said the withdrawal of the money was based on genuine authorising letters from companies that wanted to avoid the long bureaucratic process of claiming the funds.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

A timeline of the Historical Dictionary of the Arabic Language
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What is double taxation?
  • Americans living abroad file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service
  • Those obligations apply to millions of Americans residing overseas – estimates range from 3.9 million to 5.5 million – including so-called "accidental Americans" who are unaware they hold dual citizenship
  • The double taxation policy has been a contentious issue for decades, with many overseas Americans feeling that it punishes them for pursuing opportunities abroad
  • Unlike most countries, the US follows a citizenship-based taxation system, meaning that Americans must file taxes annually, even if they do not earn any income in the US.
The five pillars of Islam

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3. Hajj 

4. Shahada 

5. Zakat 

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