The chief executive of the Trade Bank of Iraq (TBI) has been dismissed after an official investigation found "financial violations" at the bank.

But Hussein Al Uzri denies any wrongdoing and says he lost his job after he refused to sign letters of credit (L/Cs) associated with a plan to develop a string of power stations.

Allegations

The Iraqi authorities issued an arrest warrant for Al Uzri earlier this month, but the former chief executive fled Iraq before he could be detained.

Official investigators allege that the bank made several loans to Iraqi companies without any collateral or guarantees.

Iraq's prime minister, Nouri al Maliki, has ordered a judicial inquiry into the bank to examine the allegations more closely.

Denials

Al Uzri, who denies violating banking regulations, says he wants to clear his name and maintains his dismissal was a political move.

Some reports suggest that Al Uzri refused to sign L/Cs related to a massive US$6 billion deal with a South Korean company to install 29 diesel-powered electricity generators across Iraq.

Replacement

The former TBI chief says the government wanted somebody close to them to be the head of the bank.

Al Uzri's replacement at TBI is Hamdiya Al Jaf, a former branch manager at the state-controlled Rafidain Bank.

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