Iraq’s Martyrs Foundation has uncovered more than 22,000 forged beneficiary files during extensive financial and administrative audits. The fraudulent records reportedly caused around 3.2 trillion Iraqi dinars in losses. The amount equals roughly $2.44 billion in state compensation and pension payments.
Foundation Chairman Abdul-Ilah Al-Naeli revealed the findings during a televised interview. He said authorities have suspended 27,400 fraudulent and suspicious files since launching broader audits. The investigations began in 2021 with support from national security agencies.
Iraq forged files included records linked to people who did not qualify for state compensation. Investigators identified 22,041 confirmed fraudulent files across several Iraqi governorates. The findings point to significant weaknesses in the systems used to verify beneficiaries.
Authorities also identified thousands of people who should not have received compensation. Investigators found 2,305 documented terrorists among the beneficiary records. They also identified 471 former Ba’ath Party figures and 1,331 other ineligible cases.
Anbar Governorate emerged as a major center of suspected documentation fraud. Investigative committees reportedly uncovered between 14,200 and 20,000 questionable death certificates. Some certificates allegedly lacked bodies or physical evidence confirming the reported deaths.
Officials linked many of those records to weaknesses in judicial death certificate procedures. Fraud networks reportedly exploited a process known as Hujjat Wafat. The system allows courts to issue legal death determinations under specific circumstances.
Iraq forged files also exposed weaknesses within provincial administrative structures. Al-Naeli identified local committees and unregulated document brokers as key channels. These individuals allegedly helped move questionable paperwork into government payment systems.
The investigation also identified vulnerabilities within the National Pension Board. Officials reportedly used those weaknesses to bypass central verification procedures. Paper-based processes at provincial branches made it easier for fraudulent documents to enter the system.
Fraud networks also allegedly commercialized verification barcodes. They used these codes to make questionable documents appear legitimate during administrative processing. The foundation now wants stronger digital systems to prevent similar manipulation.
Audit teams have so far examined around 40% of the foundation’s archives. Further reviews could uncover additional fraudulent records and financial losses. Officials expect the investigation to continue across remaining files and governorates.
Al-Naeli has also taken the issue to the judicial authorities. He met with Supreme Judicial Council President Faiq Zidan to discuss potential criminal proceedings. The foundation wants legal action against officials and individuals involved in processing fraudulent claims.
Iraq forged files have created a major financial burden for the state. The estimated 3.2 trillion dinars in losses represents money that could have supported legitimate beneficiaries. Recovering misused funds could therefore strengthen the compensation system and protect public resources.
The investigation also raises questions about oversight within government institutions. Strong verification procedures could prevent fraudulent claims before authorities approve payments. Digital systems could also reduce opportunities for intermediaries to manipulate paper records.
The Martyrs Foundation says it will continue expanding its audits and digital reforms. Officials aim to automate more verification procedures and strengthen controls across provincial branches. They also want to reduce opportunities for political or administrative interference.
The findings highlight the scale of the challenge facing Iraq’s public compensation programs. Protecting government funds requires accurate records and reliable verification systems. Stronger cooperation between security, judicial, and administrative bodies could help address the problem.