Letter to the Prime Minister of Iraq

Electricity Ministry Embroiled in $1.7bn Fraud Scandal

Letter to the Prime Minister of Iraq

Electricity Ministry Embroiled in $1.7bn Fraud Scandal

Two companies that signed contracts worth a total of $1.7 billion with the Ministry of Electricity to build power plants in Iraq have turned out to be fake. On August 2. 2011, Dr. Jawad M. Hashim sent a letter to Prime Minister Nouri al-Maliki outlining the details of his findings.

The first contract – a $ 1.2bn deal signed between the Ministry of Electricity and Canadian firm Capgent in July – was discovered to be fraudulent when Dr. Hashim, a resident of Vancouver where the firm was allegedly based, went to visit its headquarters only to find that the company didn’t exist.

Further investigations uncovered that the German firm Maschinebau Halberstadt (MBH) with which the Ministry signed a $ 5 million, also in July, was declared bankrupt on January 11, six months before formalizing the Iraqi energy deal.

What you will read below is the English translation of the letter (hand-written in Arabic) form Dr. Jawad Hashim to the Prime Minister of Iraq, Nouri Al-Malaki.


All original documents and supplements (of this Letter to the Prime Minister) have been compiled into one PDF document which can be downloaded by clicking this link, or the link in the sidebar.


English Translation of Letter
From Dr. Jawad M. Hashim
To the Prime Minister of Iraq – Nouri Al-Malaki Esq.


Vancouver August 2nd, 2011

H. E. The Prime Minister of Iraq
Nouri Al–Malaki Esq.



Subject: Ministry of Electricity & Its Corrupt Contracts

As chance would have it, I came across the electronic website of the Iraqi Ministry of
Electricity.    This is what I found:

  1. On July 3rd, 2011, in the presence of the senior Undersecretary of the Ministry of Electricity – Mr. Ra’ad Al-Haris, the Ministry had signed a contract for over $1 Billion with a Canadian company by the name of CAPGENT. The headquarters of the company is given to be in Vancouver where I live myself.
  2. On July 6th, 2011, in the presence of Mr. Raad Shallal Sa’eed (Minister of Electricity), the Ministry had signed a contract to the value of €500 Million with a German company abbreviated as MBH.
  3. Now, because I live in Vancouver myself, I decided to look into some of the information available about the Canadian company. Meanwhile, I asked my friend, Dr. Fakhri Kaddouri — a former Iraqi Minister of Economics and former Governor of the Central Bank of Iraq, to investigate the German company. Dr. Kaddouri lives in Cologne, Germany.

A.    Information available on the Canadian company known as CAPGENT :

  1. First, I wish to point out that to form a company in Vancouver (and the rest of Canada) is easy and straightforward. Anybody can register a company after paying a modest fee. It is not necessary for the company to have a real capital or actual office(s). The BC Registry Services very simply needs a name for the company, the name for the founder and its postal address. Upon registration the new company is given a number, and from then on it will be known by that registration-number. The owner of the company may also give a specific name to the company, and that can happen even after had acquired its registration-number.

  2. The Canadian company CAPGENT is a paper-company and was registered as follows:

  • On May 20th, 2008, a lady by the name Gisele Lorraine Summers had registered a company with the number BC-0825450 and gave her residential address as the address for the company. Her modest residence is on the outskirts of Vancouver. The address of the company was:

          1112 Thomas Avenue
          Coquitlam, BC V3K 2K9

    Ms. Summers has put her own name down as the Director of the company.

  • On May 6th, 2011 (two months prior to the signing of he contract with the Iraqi Ministry of Electricity), Ms. Summers applied to the BC Registry Services to change the name of the company from its numerical company to Canadian Alliance For Power Generation Equipment Inc. (abbreviated as CAPGENT ).

    Ms. Summers had asked to appoint Mr. Muhannad Samara as head of this paper-comapny. He gave his address in Amman, Jordan:

          3 Al Zajil Street
          Amman 11831

    As for the address in Vancouver, this was changed from Ms. Summers’ home address to another one inside Vancouver city:

          Samara, Muhannad
          Suite 440-319 West Pender Street
          Vancouver, BC V6B 1T3

    The address above is listed for both mail and delivery.

  1. I visited the above address myself but found no company under that name and no offices for the alleged company anywhere else in Vancouver. The above address belongs to a lawyer’s office in a derelict party of the city.

    In other words, CAPGENT is a phantom company, and it exists only on paper. And I believe it was set with the intentions of perpetrating a huge larceny. In a way, CAPGENT is very similar to the structure of Al-Ain Al- Jariya which was formed in Amman by Hazim Al-Shaalan and his friends with the intentions of stealing huge sums from the Iraqi Ministry of Defense.

  2. With this letter, I attach documents which I’ve obtained from the BC Registry Services in Vancouver. I also attach a photo of the house that was given as the company’s address upon its initial registration, together with a photo of the building whose address was given by Muhannad Sumarah, being the address of his alleged company!!

    The phantom company also established a website under the domain name: www.CAPGENT.net   and a phone number: +1 604-218-3979. This phone number is normally answered by a female who refuses to give any details or data on the company. This is very unusual as most companies are very keen to give as much information as possible in order to promote themselves.

  3. From my experience, as a former Minister of Planning, I find it very difficult to accept that the Ministry of Electricity (or any other Ministry) signing contracts the value of which exceeds billions of dollars, without it going to tenders first or by direct invitations of a small number of well-known & specialized companies.

    For a ministry, like the Ministry of Electricity (in the presence of the Minister and a senior deputy Minister), to sign a contract for US$1.2 Billion with phantom company is very suspicious!

B.    Information Available on the German company MBH :

  1. Machinebau Habertstadt is the name of the German company which is abbreviated as MBH. Its owners are a Lebanese company knows as Sakr Group. Its given address is: 98 Qurtuba Street, Jbeil Halat, Lebanon.

    According to a number of websites, this company had filed for bankruptcy on January 11th, 2011. That is to say, six months before it signed the contact with the Ministry of Electricity, in the presence of Minister Ra’ad Shallal Sa’eed.

    I also asked Dr. Fakhri Kaddouri, the former Minister of Economics and former Governor of the Central Bank of Iraq, to check the background of the company.    The following is his reply:

A press-release that was issued on May 13th, 2011, states that a German Court had taken a legal step regarding the bankruptcy-request on January 11th, 2011, and an administrative and financial arrangement had saved the company from immediate bankruptcy. This arrangement with the creditors includes, amongst other things, the reduction of the number of employees in the company. This procedure is prompted and supported by the main shareholder of the German company which is another Lebanese company that goes by the name of Sakr Group.

My previous experience has been that any company that is subject to bankruptcy court proceedings is suspect. And any future dispute between the Ministry of Electricity and this company will end in the German bankruptcy courts. At best, this is a very complex procedure, and Iraq doesn’t need to involve itself in it.

The more important question here is whether the MInistry of Electricity had satisfied itself of the proper financial standing of the company?     I ask this question in view of the fact that the company had filed for bankruptcy just six months prior to signing the contract!

I feel it is in the best interest of Iraq to get out of this contract.


Your Excellency,

The reason of my writing to you is my continued attachment to my country-of- birth — IRAQ. The fledgling democratic Iraq has been targeted (and still is being targeted) by the forces by evil and corruption from within and without!

You have been shouldering a heavy responsibility for the past six years, and upon you falls the protection of the Iraqi people and their national assets.

The patriotic stand would now be, not only to declare these contracts null & void, but to bring those responsible to account. Corrupt official(s) should be brought to book, and the full force of the law should be applied.

Such measure should include all pockets of corruption without exceptions or bias towards party or sect!

Please accept, Your Excellency, the consideration of my highest regards.


Jawad Hashim
Former Iraqi Minister of Planning



Letter to the Prime Minister of Iraq
(5.5 MB — PDF file)

Letter to the Prime Minister of Iraq