Iraqi lawmaker alleges $808 million contract scandal at Baghdad thermal power plant

BAGHDAD, Iraq — A member of Iraq's parliamentary Electricity and Energy Commission has alleged that two companies signed contracts worth roughly $808 million to rebuild the Devre thermal power plant in Baghdad but failed to carry out the work despite receiving allocated funds. Zahra Sadi said General Director of Middle Region Electricity Production Ali Ahmed signed the agreements with the two firms. According to Sadi, the two companies later terminated their contract with each other, after which one signed a new agreement with the Ministry of Electricity on the same terms. The other company filed a lawsuit against the ministry and the Iraqi government seeking additional payment, she said, adding that the project has faced continued setbacks and that the plant has not contributed to the national grid more than seven years on. Sadi called for a formal investigation into the tendering process and project management, saying the matter should not be limited to administrative penalties and should be examined by oversight and judicial bodies to determine responsibility. The Ministry of Electricity and the other parties named were given the right to respond. No further details were immediately available.