Al-Zaidi targets ‘intermediary companies’ in defense industry contracts

BAGDHAD: Iraqi Prime Minister Ali Al-Zaidi has ordered the Defense Industries Commission to bypass intermediary firms and contract directly with manufacturing companies, aiming to curb funding channels linked to armed factions.

The directive seeks to tighten oversight on government procurement by eliminating middlemen networks, which informed sources state serve as vital economic pipelines for various armed groups.

The policy shift arrives amid mounting tension between the government and certain factions, driven by Al-Zaidi’s broader push to restructure the relationship between state institutions and armed formations, including their commercial ventures. Sources familiar with the matter noted that the restriction has sparked significant concern among stakeholders who rely on intermediary networks tied to lucrative state contracts.