UN staff in Iraq demand bribes for reconstruction contracts, probe finds

Staff working for a United Nations’ programme in Iraq have reportedly been demanding bribes in return for assisting contractors in passing reconstruction projects, an investigation has revealed.

Citing dozens of current and former UN employees, contractors and Iraqi and Western officials it interviewed, British newspaper The Guardian reported that staff working for the UN’s Funding Facility for Stabilisation – part of the UN Development Fund (UNDP) – within Iraq have demanded bribes of up to 15 per cent of the value of contracts to reconstruct the country. In exchange for those payments, those UN employees then help the contractor navigate the Fund’s complex bidding system and pass its vetting process.

According to one contractor: “Nobody can get a contract without paying. There’s nothing in this country you can get without paying, not from the government, not from UNDP.” The practice is criticised as adding to the country’s rampant post-war corruption in the two decades following the US-led invasion of Iraq and the overthrow of former Iraqi dictator Saddam Hussein.

That is reportedly confirmed by the investigation’s revelation that Iraqi government officials – entrusted by the UNDP to oversee construction projects – take cuts from those bribes, using their authority to “extort” money from companies in exchange for signing off completed projects.

Infographic: Corruption in Iraq [ Source: Iraqi Commission of Integrity ]

One UNDP employee told the investigation that such deals were strictly made in person instead of on paper, in an effort to avoid being caught. Influential Iraqis also reportedly often serve as guarantors, acting as a third party that also “takes a share of the kickback” and who usually have “relationships and power”.

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The Guardian report has shed light on the extent to which funds from the UN’s Funding Facility for Stabilisation – backed by $1.5 billion in support from 30 donor nations – have been misspent on things other than assisting Iraq’s redevelopment. The funds were reportedly not only spent on bribes, but also on redundancies and large overheads.

The UNDP insisted in a statement to the newspaper that it had “internal mechanisms that prevent and detect corruption and mismanagement, supported by robust compliance procedures and internal controls”. The UN body stated that it takes very seriously allegations of corruption and lack of transparency, with a “zero tolerance for fraud and corruption”.

That policy, it said, “applies equally to UNDP staff members, as well as other personnel, vendors, implementing partners, and responsible parties engaged by UNDP. Any allegation of bribery, corruption, or fraud is thoroughly assessed and, where appropriate, investigated by UNDP’s independent Office of Audit and Investigation.”

Iraqi authorities have also indicated that they would look into the matter, with Farhad Alaaldin, the adviser to Iraq’s prime minister, telling the newspaper: “We will communicate with the highest authorities at the UN to discuss and investigate the details of these allegations and refer those involved in corruption to the competent authorities. We will also review all programmes to find out the truth.”