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Iraq has appointed two foreign firms to investigate financial offences that have caused a long delay in its largest housing project, the local media said on Thursday.
The National Investment Commission (NIC) has received cabinet approval to name the two auditing and law firms to help probe years of delay in 'Bismaya City' which was awarded 10 years ago to South Korea’s Hanwha Engineering and Construction Company, Aliqtisad News network said, citing a NIC statement.
“NIC has received cabinet approval for the appointment of two international auditing and law firms to investigate financial issues in the project,” it said.
The statement did not elaborate on those issues but said the two firms are expected to work on new “contract versions” for the project.
Iraq’s media reported in 2020 that Hanwha decided to halt work on Bismaya after the government failed to pay its dues for two years.
Hanwha has already built nearly 30,000 of the project’s 100,000 houses before it decided to stop work after it did not receive payments for 2019 and 2020.
OPEC member Iraq awarded the $7.7-billion contract to Hanwha in May 2012 and work began in 2013 but was obstructed by internal hostilities.
Located nearly 10 km southeast of the capital Baghdad, the project has an area of 18 square kilometres and was supposed to be completed within seven years.
The city will accommodate nearly 600,000 people and it also comprises power and sewage networks, communications systems, roads, car parks, schools and universities, health centres and other facilities.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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