ERBIL, Kurdistan Region of Iraq - Iraqi Minister of Labor and Social Affairs Ahmed al-Asadi announced Monday that he presented the “facts” regarding the spending of 2.5 trillion dinars (over $1.9 million) from the Social Welfare Fund to the Federal Commission of Integrity, coming after he earlier said that the finance ministry and Rafaidain Bank withdrew the funds to pay salaries.

In a post monitored by The New Region, Asadi said he “welcomes any audit or review by the Ministry of Labor, the Ministry of Finance, and Rafidain Bank,” stressing that “the ministry is operating with full transparency.”

He added, “We have presented the facts to the Commission of Integrity and will present them to the Federal Board of Supreme Audit according to the rules,” noting that “we continue to serve vulnerable groups and beneficiaries of the ministry’s services without interruption.”

Earlier, the minister said in a televised interview that “we were surprised by the withdrawal of 2.5 trillion dinars from the Social Welfare Fund,” indicating that “the information we have shows that the withdrawal took place between the Ministry of Finance and Rafidain Bank, and that they purchased bonds.”

He added that “to complete the payment of salaries, the government sells bonds,” suggesting that “the withdrawn funds were likely used for salaries.”

Earlier on Monday, the Federal Integrity Commission announced it had begun investigating information related to the funds deposited in the Social Welfare Fund.

The commission said in a statement received by The New Region that its “specialized teams have started inquiries, investigations, and audits into reports about the withdrawal of 2.5 trillion dinars from the Social Welfare Fund,” which had been circulated in the media and on social media.

It added that “the teams have begun verification and fact-finding procedures to determine the details of this information, in preparation for taking the appropriate legal actions.”

Rafidain Bank, for its part, said on Sunday that the statements made by the minister regarding the withdrawal of 2.5 trillion dinars from the Social Protection Fund’s account were inaccurate, confirming that “the bank did not receive any request or approval to invest or withdraw those funds.”

According to a statement received by The New Region, the bank clarified that “the actual balance of the Social Protection Network account stands at 2.495 trillion dinars, while the balance of the Social Protection Fund account is 390 billion dinars. All these balances are fully available at the bank with no shortage or withdrawals.”

The bank added that “its role is limited to maintaining accounts and implementing official spending orders issued by the ministry, without any involvement in decision-making. No authorization was received from the Ministry of Finance to make transfers between accounts, in line with the Federal Financial Management Law No. 6 of 2019, as amended by Law No. 4 of 2020, which requires formal authorization for any financial transfer between accounts.”

It stressed that “the bank has not received any request from the Ministry of Labor or the Fund’s administration to invest or withdraw the funds, nor has it been informed of any legal case filed against the bank by any party regarding this issue.”

Meanwhile, the Ministry of Finance also issued a statement responding to al-Asadi’s remarks, in which he said that the ministry and Rafidain Bank had withdrawn 2.5 trillion dinars from social assistance funds to finance salaries.

The ministry stated: “We have followed with interest the televised remarks made by the Minister of Labor and Social Affairs, which included inaccurate information about the withdrawal of funds from the Social Protection Network account. We would like to clarify that the amount was not withdrawn but rather frozen. Out of our commitment to transparency and informing the public, we present the following facts:

The current account for the Social Protection Network was opened in 2015 and has been centrally funded for the purpose of paying social welfare salaries, in accordance with the Social Protection Law No. 11 of 2014, Article 19 (First-A), which stipulates allocations from the federal general budget of the state.

The account was opened solely for that purpose. However, the Ministry of Labor and Social Affairs failed to properly monitor the account balance by reconciling it with the bank, despite the presence of funds deposited contrary to the account’s purpose, including amounts refunded from smart cards of social protection beneficiaries between 2015 and 2025.”

Audit findings and ministry clarifications

Through the financial and technical audits conducted by the Ministry of Labor and the Federal Board of Supreme Audit, it was found that the account had been used for purposes outside its designated nature, practices that were not carried out by the ministry.

The account also includes funds transferred from the Ministry of Finance, as well as amounts refunded from smart cards of social protection beneficiaries. These funds remain in the account and have not been withdrawn.

The matter was audited by the Federal Board of Supreme Audit/Social Activity Audit Department under its official letter No. 18/21/3/24154 dated September 17, 2025. Observations regarding the account were officially recorded, and the Board requested a detailed analysis of the revenues contained within the account.

The Ministry of Labor and Social Affairs also issued a statement regarding the minister’s remarks, saying, “Some media outlets have circulated inaccurate interpretations of the statement made by the Minister of Labor and Social Affairs, Ahmed al-Asadi, regarding the financial status of the Social Protection Fund. This requires clarification to prevent misunderstanding.”

The statement stressed that “the balance of the Social Protection Fund is digitally confirmed and fully recorded in the ministry’s accounts with Rafidain Bank. It represents a financial right managed according to legal regulations and cannot be disposed of outside the approved framework.”

The Ministry of Finance explained that “social protection stipends are disbursed regularly and are fully secured within the general budget. They are not technically linked to liquidity levels or the movement of the fund’s balance. The minister’s comments were made in the context of a future vision under which the ministry aims to finance these stipends later through investment returns generated by the fund.”

It added that “the reference made by the minister concerned the liquidity status in banks and the occasional lack of immediate cash availability for withdrawal, even though the balances are digitally confirmed in the accounts. Rafidain Bank officially confirmed this in a letter addressed to the ministry after the statement, clarifying that the funds are preserved and digitally recorded.”

The statement concluded: “Therefore, the comments were about liquidity, not the loss or absence of funds. The rights of the fund and the beneficiaries of social protection remain safeguarded and recorded in official registers.”

Parliamentary reaction

Member of Parliament Raed al-Maliki commented on the minister’s statement about the alleged withdrawal of 2.5 trillion dinars from the Social Protection Fund, saying he had submitted a parliamentary question on the matter, which prompted al-Asadi to act.

In a statement received by The New Region, Maliki said, “We followed the statement of the Minister of Labor and Social Affairs, Ahmed al-Asadi, in which he acknowledged the withdrawal of 2 trillion dinars from the Social Protection Fund and mentioned that he was surprised two months ago to learn that the funds had been withdrawn, prompting him to file a complaint. However, he did not mention what led him to file that complaint.”

He explained that “a parliamentary question was submitted by Dr. Raed al-Maliki, a member of the Legal Committee, addressing three entities, including the Social Protection Authority, inquiring whether the fund’s money had been used for purposes other than those allocated for it.”

He added, “The Ministry of Finance has responded to some parts of the question and referred paragraph (3) to the Social Protection Authority, whose response has not yet been received. It appears that the complaint was filed after the parliamentary question was submitted.”