Syria: Corruption amounting to two billion Syrian pounds in foreign trade and the Commercial Bank
The Central Financial Control Authority in Syria has revealed details of a massive financial corruption case involving the General Organization for Foreign Trade and the Commercial Bank of Syria. Legal and administrative violations resulted in significant damage to public funds, estimated at approximately two billion Syrian pounds (according to the old exchange rate at the time of the incident). This case sheds light on irregularities that occurred in the awarding and execution of government contracts during previous periods.
Details of the armored car deal
Extensive investigations by the oversight body revealed that the case revolves around a contract concluded by the General Organization for Foreign Trade with a private company. The contract stipulated the supply of two armored vehicles to the Commercial Bank of Syria. Despite the clarity of the contractual terms, the contractor failed to adhere to the agreed-upon delivery timeframe, delivering the vehicles after the legally stipulated deadline, thus warranting immediate disciplinary action.
Collusion and justification of delay
According to the regulations and laws governing government contracts in Syria, the supplying company should have been subject to financial penalties for delays. However, investigations revealed that officials justified the delays in ways that violated the regulations and laws, thus unjustly exempting the contractor from the penalties due. This illegal procedure resulted in the direct loss of 614 million Syrian pounds, in addition to a foreign currency amount of $119,000, bringing the total loss to approximately 1.35 billion Syrian pounds at the exchange rate of that period, and the overall damage to nearly 2 billion Syrian pounds.
The economic context and the importance of oversight
This issue is of particular importance given the difficult economic circumstances in Syria, where preserving public funds and preventing waste are among the top priorities of current economic policy. The General Organization for Foreign Trade and the Commercial Bank are cornerstones of the national economy, and any mismanagement within them negatively impacts confidence in the public financial sector. Revealing this file is part of efforts to strengthen the role of oversight institutions in holding those responsible accountable and controlling government spending.
Legal responsibility and actions taken
The investigations concluded that several parties bore full responsibility, including the contractor and the company as a legal entity, as well as the then-general manager of the commercial bank, the head of the machinery division, and the head of the machinery department. They were charged with negligence leading to damage to public funds and with poor execution of the contract terms.
Accordingly, it was decided to refer the contractor to the competent court and to obligate all parties involved (the company and government officials) to jointly and severally repay the wasted amount. The penalties also included relieving the officials involved of their duties and issuing decisions prohibiting them from being assigned any future work involving financial responsibilities, to serve as a deterrent in safeguarding public funds.
