Baghdad (IraqiNews.com) – The Communications and Media Commission (CMC) in Iraq repealed on Tuesday its settlement deal with Korek Telecom and suspended the company’s activities.

The CMC underlined Korek’s prolonged inability to meet contractual requirements and clear enormous financial debts despite several opportunities given to the company.

The outstanding financial obligations of the Erbil-based telecommunications company, which include overdue license fees, are estimated to total around two trillion Iraqi dinars (approximately $1.5 billion).

The step took place after the CMC engaged with Iraqi banks to confiscate all of Korek’s assets in an effort to retrieve the government cash.

According to reports, Korek Telecom no longer has enough physical assets to meet its substantial liabilities.

Iraq’s independent regulatory authority for telecommunications strongly directed government institutions, private companies, and residents not to sign new deals or do business with Korek Telecom.

The CMC has deemed Korek entirely accountable for all legal and financial implications of the operational stoppage.