Iraq Federal Court Cancels Traffic System Contract

BAGHDAD, Iraq — Iraq's Federal Court of Cassation has cancelled a contract for operating a traffic monitoring system, ruling that it improperly authorized the collection of fees not established by law. The court issued its ruling on June 7, 2026. It found that Article 7 of the contract granted the operating company the right to collect 12,000 dinars from traffic violators as a service fee. The court said the 2004 and 2019 traffic laws clearly define penalty collection mechanisms and amounts, and that no institution is authorized to set or collect additional fees. The contract was ruled void on the grounds that traffic fines can only be regulated by law and that the contract violated this principle by including charges not authorized by statute.