Massoud Barzani's illegal wealth estimated at $55 billion: ex-official

ERBIL,— Former Kurdistan Regional Government official says the leader of Iraqi Kurdistan’s ruling Barzani family built a fortune of $55 billion through illegal means, the Turkish newspaper Yeni Şafak reported.

The unnamed ex-official, who reportedly held a senior post in Erbil from 2009 to 2014, told the paper that Massoud Barzani, his son, siblings and other relatives have “built a mafia empire, amassing wealth through unlawful means and funneling money into his personal accounts despite the existence of a regional finance ministry.”

The source put Barzani’s personal wealth at $55 billion.

From 2012 to 2017, while control was held over more than 45 oil fields, Barzani built his fortune through several channels, the report said.

These included the Khabur border crossing with Turkey, the Korek Telecom company, trade in natural gas and oil, and funds sent by Iraq’s federal government.

A source in Iraqi Kurdistan said Barzani placed major investments in Turkey, the United Arab Emirates, Cyprus and the United Kingdom.

The money was funneled directly to his tribe or to affiliated companies working in shipping, logistics and transport, food, mining, contracting and oil trading.

The former official said the Khabur crossing on the Turkish border and the Bashmak crossing on the Iranian border serve as key sources of income from oil trafficking for the Barzani family.

“By constructing a mafia empire in Erbil, all earnings go to one person,” the source said.

The ex-official, who spent five years working for the Barzani-led KRG administration, compared the fallout from Barzani’s disputed independence referendum of September 25, 2017, to “an earthquake that resulted in tremendous losses,” saying “the reverberations of this quake will continue to be felt.”

Saudi Arabia’s Al Watan newspaper reported in 2018 that Massoud Barzani, the former Kurdistan region president and leader of the Kurdistan Democratic Party, held $48 billion in investments and property.

Observers and Kurdish politicians say the KRG has not been transparent about the true amount of oil revenue it discloses to the public and to the Kurdistan parliament.

Many Kurdish politicians, observers and ordinary residents believe the region’s oil projects and deals are carried out without transparency, with some describing them as secretive.

Iraqi Kurdistan is widely viewed as the most corrupt part of Iraq. Watchdog groups, lawmakers and leaked documents point to billions of dollars missing from oil revenues, reports say.

For decades, the region has been run by two families: the Barzani clan’s Kurdistan Democratic Party and the Talabani family’s Patriotic Union of Kurdistan. Both parties face regular accusations of corruption.

Local and international analysts and watchdog organizations say the absence of oversight mechanisms in Iraqi Kurdistan has made it fertile ground for illegal financial dealings by the region’s ruling figures.

The Barzani family, often described by critics as Kurdish oligarchs, has repeatedly faced accusations of nepotism and of channeling oil wealth toward the family rather than the public.

Analysts say Massoud Barzani remains the most powerful figure in the region, operating largely behind the scenes. His son, Masrour Barzani, serves as the Kurdistan region’s prime minister, while his nephew, Nechirvan Barzani, holds the post of Kurdistan president.

Bloomberg reported in 2020 that Russia’s state oil company paid $250 million to an outside consultant to help secure business deals in Iraqi Kurdistan.

Investors say corruption and a lack of transparency remain the biggest barriers keeping foreign companies from putting money into the region.

A 2015 report from the DOR Organization for Kurdistan Oil and Gas Information ranked Iraqi Kurdistan eighth in the world for oil and gas reserves, adding that the region will be “the last place in the world to run out of oil.”

On February 22, Iraq’s Supreme Court ruled that a law governing the oil and gas industry in Iraqi Kurdistan was unconstitutional and ordered Kurdish authorities to hand over their crude supplies.

Under the ruling, Erbil must transfer all crude from the KRG and surrounding areas to Iraq’s federal oil ministry in Baghdad.

Iraqi Kurdistan remains politically and geographically divided between the Kurdistan Democratic Party, led by Massoud Barzani, and the Patriotic Union of Kurdistan, led by the Talabani family.

The Barzanis control Erbil and Duhok, home to most Kurdish oil fields, while the Talabanis control Sulaimani.