A series of leaks and media reports have placed Iraqi President Latif Rashid and his close associates at the center of a growing corruption scandal, primarily linked to the lucrative fiber optic internet sector. The controversy revolves around iQ Company, an internet provider controlled by Asoz Latif Rashid, the president’s son. This case has not only sparked debates about corruption but has also exposed the deeper political rivalries shaping Iraq’s business landscape.

The Role of the Talabani Family and iQ Company

Latif Rashid, a member of the Patriotic Union of Kurdistan (PUK) and husband of Shanaz Ibrahim Ahmed (the aunt of current PUK leader Bafel Talabani), finds himself entangled in these allegations amid increasing scrutiny of iQ Company’s operations. The company has faced accusations of illegally channeling internet bandwidth into central and southern Iraq, evading fees and taxes reportedly amounting to nearly 1 trillion Iraqi dinars. Despite being blacklisted for failing to pay penalties, the company allegedly continued its operations, accumulating daily fines of 10% of the outstanding amount. Nevertheless, the Ministry of Communications awarded iQ Company a new decade-long contract, raising further suspicions of favoritism and backroom dealings.
Additionally, the arrest of Chalak, a director at iQ Company and a close associate of the president, has further intensified the controversy. Chalak’s detention appears to be linked to ongoing disputes between iQ and other internet service providers, making it evident that this case is not just about corruption but also about power struggles over Iraq’s fiber optic infrastructure.

The Role of EarthLink and KDP’s Economic Interests

While much attention has been placed on iQ Company, another key player in this dispute is EarthLink, the dominant internet provider in federal Iraq. EarthLink is controlled by the Kurdistan Democratic Party (KDP) via Newroz Telecom, a company tied to the Barzani family, along with several other entities.

Some informed source suggest that the latest developments indicate that iQ is on the verge of breaking EarthLink’s wholesale monopoly in federal Iraq. However, iQ has not been issued a direct government contract—it operates through a commercial agreement between two private companies, with the Iraqi government merely receiving fees from the arrangement. Crucially, iQ’s fee structure (30%) with the government is significantly higher than EarthLink’s (under 20%), which has given the Iraqi government leverage to renegotiate its existing terms with EarthLink.

This aspect adds another layer to the controversy, as it suggests that iQ’s expansion threatens EarthLink’s dominance, which is deeply embedded within the KDP’s economic interests. The political implications of this business rivalry cannot be overlooked, as both the KDP and PUK have historically competed for economic influence in Iraq’s telecommunications sector.

Media Leaks, Political Infighting, and Anti-Semitic Narratives

What makes the version of EarthLink questionable is that the corruption allegations were initially amplified by Inews TV, a pro-Iran media outlet affiliated with Abu Ala al-Walai, commander of Kata’ib Sayyid al-Shuhada. However, the report was quickly deleted, raising questions about who is driving the leaks and to what end.

Notably, the report framed iQ’s shareholders in a conspiratorial manner, emphasizing the presence of a “Jewish partner with foreign nationality.” This rhetoric—especially in the context of Qubad Talabani’s marriage to an American-Jewish woman—aligns with well-documented pro-Iranian propaganda tactics that exploit sectarian and ideological divisions to discredit rivals. The attempt to portray iQ’s ownership as suspicious due to alleged Jewish connections reflects broader prejudices within Iraq’s political discourse and serves as a tool for political and economic sabotage.

The Bigger Picture: Power Struggles and Iraq’s Fiber Optic Sector

This controversy is about more than just iQ or its alleged financial misconduct—it is a reflection of Iraq’s entrenched political and economic rivalries. The leaks appear to be strategically designed to pressure both President Latif Rashid and the Ministry of Communications, which is controlled by Falih al-Fayadh, head of the PMF. Some reports suggest that Baghdad-based political actors, particularly those tied to Iran, are seeking to restructure Iraq’s fiber optic contracts in a way that benefits their own economic interests.

Meanwhile, the rivalry between PUK-aligned iQ and KDP-backed EarthLink underscores the economic battles shaping Iraq’s telecommunications landscape. The potential disruption of EarthLink’s monopoly is significant, as it has prompted the Iraqi government to reconsider its contract terms, potentially altering the balance of power in the sector.
Adding to the scandal, leaks have also revealed allegations of excessive government spending, including claims that President Latif Rashid spends nearly 150 million Iraqi dinars per month on car fuel. These revelations reinforce public frustrations over elite corruption, as Iraqis struggle with economic hardships, unreliable infrastructure, and political instability.
The unfolding saga surrounding iQ Company, EarthLink, and Iraq’s fiber optic sector is a textbook example of how business rivalries, political maneuvering, and media manipulation intertwine. While the allegations against iQ warrant scrutiny, it is also evident that the controversy is being weaponized by political actors with vested interests in the telecom industry.
The leaks, arrests, and media campaigns surrounding iQ and EarthLink offer a window into the broader dynamics of political and economic power struggles that define the current political class in Iraq.