Iraq has foiled a massive scam attempt involving nearly $900 million in a major gas project being executed by the London-based Shell Group and Mitsubishi Company of Japan, an official statement said on Wednesday.

The Federal Commission of Integrity (FCOI), a government watchdog which monitors public sector performance, said it has uncovered the attempt in the state-owned Basra Gas Company.

The attempt was uncovered by a FCOI investigation team visiting the $900-million project, which involves the construction of a gas processing plant in the Southern oil hub of Basra, FIC said in the statement published by the official Iraqi news agency INA.

“The FCOI foiled the attempt to nearly double the approved cost of the gas project by listing pumps and other machinery which were not installed or included in the project,” it said without identifying those involved.

In its statement, FCOI said it also uncovered another corruption case involving nearly $11 million worth of project items at West Qurna Field operated by the same company.
The items were delivered to the Company in 2015 but have been left outdoors without use, leading to damage to most of them. “This amounts to deliberate waste of public funds,” the statement added.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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