SULAIMANI, Kurdistan Region of Iraqi – The Kurdistan Regional Government’s (KRG) Ministry of Finance and Economy announced on Wednesday that it will auction off dozens of properties belonging to two companies owned by Shaswar Abdulwahid, leader of the opposition New Generation Movement (NGM) party. 

The ministry stated that the decision, made following court proceedings, aims to recover unpaid loans.

The ministry's public statement detailed that the sale, prompted by accumulated debts totalling approximately 92 billion dinars ($70 million), involves properties belonging to Abdulwahid, a businessman-turned-politician who founded the NGM in 2018. The party won 15 seats in the Kurdistan Region's parliamentary elections in October 2024 and nine seats in the Iraqi parliament in 2021.

Abdulwahid was arrested by Sulaimani Police on August 12 under Article 431 of the Iraqi Penal Code, which addresses the act of making serious threats against individuals or their property and reputation.

On Tuesday, a court in Sulaimani sentenced Abdulwahid to five months in prison on these charges following a legal case brought by Shadi Nawzad, a former NGM lawmaker, who accused Abdulwahid of threatening to release explicit videos of her.

The KRG finance ministry statement noted that repeated warnings to Shaswar's Nalia Company to repay its loans were ignored, prompting the decision to hold a public auction of all related properties. Assets to be sold include Nalia Company and the Chavi Land theme park in Sulaimani.

A total of 60 properties owned by Abdulwahid were confiscated and will be auctioned next month, following the publication of the auction announcement in the local newspaper, the Ministry of Finance and Economy said in a statement on Wednesday. The properties include land, hotels, cafeterias, and tourist cabins within the Chavi Land amusement park, located on the foothill of Goizha mountain.

Following the ministry’s statement, The New Region contacted Hunar Jamal, spokesperson for the KRG Ministry of Finance and Economy; Himdad Shahin, spokesperson for the NGM; and the Chavy Land Company, but none were available for comment.

A close legal source to the issue, speaking on condition of anonymity, told The New Region that the case stems from a major, politically charged corruption scheme that has been ongoing for nearly a decade.

“A governmental official in Sulaimani, who is now freed on bail after being charged with corruption, did not put a siege on Abdulwahid’s properties when he started building the Chavi Land project with the KRG loans and shareholders; rather, the official agreed with Abdulwahid to register all the KRG loans and shareholder contributions as personal capital for the latter, and Abdulwahid then sold his unlawful properties to a local company,” the legal source said.

The source also stated that the auction funds will be used to repay the KRG loans, including accumulated interest, emphasizing that the KRG should also guarantee the shareholders' financial entitlements.

The source added that shareholders are filing more complaints against Abdulwahid in court after he was held in custody before being convicted on Tuesday.

The source emphasized that the only solution is to sell all properties registered to Abdulwahid in a public auction and then reimburse shareholders.

Another legal source, speaking on condition of anonymity, told the New Region that tens of shareholders are filing complaints against Abdulwahid and requesting payment of their pending interest rates. Abdulwahid will be put on trial for this case after he finishes his current jail term.

Amid rising tensions, the PUK has recently intensified actions against opposition parties in Sulaimani, reportedly due to concerns about potential outcomes in the upcoming November Iraqi parliamentary elections. To date, three opposition leaders have been arrested: Aram Qadr, head of the National Coalition; Lahur Sheikh Jangi, head of the People's Front party; and Abdulwahid.

The NGM has condemned its leader's arrest, describing it as an "abduction" that allegedly occurred without prior notification.

Shahin, in a statement on Tuesday, said that the charges against Abdulwahid lacked any proof and the imprisonment of their leader does not deter them from actively participating in the November elections.