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KDP warns of 'serious stance' if Baghdad fails to pay KRG's financial entitlements
KDP warns of 'serious stance' if Baghdad fails to pay KRG's financial entitlements

Rudaw Net

time12 hours ago

  • Business
  • Rudaw Net

KDP warns of 'serious stance' if Baghdad fails to pay KRG's financial entitlements

Also in Iraq Coordination Framework delegation to visit Erbil amid Baghdad-KRG strain Kurdistan workers urge Iraq's top court to order salary release from Baghdad Iraq transfers military college cadets to Baghdad after tragic deaths Iraqi leaders receive Lebanese president for talks on bilateral ties, security A+ A- ERBIL, Kurdistan Region – The Kurdistan Region's strongest political party on Thursday slammed Baghdad for its decision to stop paying the Region's civil servants. The Kurdistan Democratic Party (KDP) also warned it may take a "serious stance" if the Iraqi government fails to release the Region's financial entitlements by June 6. In a sharply worded statement, the KDP accused the federal government of continuing 'to violate the constitutional rights of the Kurdistan Region,' adding that the latest violation is the Iraqi finance ministry's decision on Wednesday to cut the Region's funding. The KDP further warned that 'if the rights and financial entitlements of the people of the Kurdistan Region,' including public employee salaries, 'are not sent before Eid al-Adha [on June 6], we will take a serious stance and announce it.' Iraqi Finance Minister Taif Sami claimed on Wednesday that the ministry is 'unable' to continue financing the Kurdistan Region, alleging that Erbil has exceeded its 12.67 percent budget share set by the 2025 Federal Budget Law. In an official letter to the Kurdistan Regional Government (KRG), Sami said that Erbil exceeded its allocated share by 13.547 trillion dinars ($10.34 billion), adding that under Iraq's Federal Supreme Court decisions, further funding in such circumstances is prohibited. Sami further added that the Region's oil and non-oil revenues from 2023 until April of this year amounted to 19.9 trillion dinars ($15.19 billion); however it only transferred 598.5 billion dinars ($456.87 million) to the federal government. Importantly, the finance ministry was expected to pay the salaries of civil servants in the Kurdistan Region for the month of May ahead of the Muslim holiday on June 6. Sherwan Dubardani, a KDP member of the Iraqi parliament, told Rudaw on Wednesday that 'the audit process for the salary lists of employees and beneficiaries in the Kurdistan Region has been completed,' and anticipated that salary distribution would occur before Friday. However, the finance ministry's recent decision has effectively brought the process to a halt. The KDP on Thursday censured Sami's decision, calling it contradictory to 'the constitution and the principles of the government formation agreement,' and said it 'reflects the politicization of the people's funds.' Importantly, the KDP is a key member of the governing State Administration Coalition, which includes the Shiite-led Coordination Framework, the Sunni Sovereignty Alliance, and the Patriotic Union of Kurdistan (PUK). The coalition's September 2022 formation was marked by the nomination of Mohammed Shia' al-Sudani as prime minister and it currently holds 275 of the 329 seats in the Iraqi parliament. In the lead-up to the formation of the Coalition, Kurdish parties, namely the KDP and PUK, outlined several key demands to ensure their participation and safeguard the Kurdistan Region's constitutional rights. The Kurdish parties' demands included implementing the Oil and Gas Law, ensuring timely payment of the Kurdistan Region's financial entitlements, recognizing Kurdish constitutional rights, and protecting disputed territories such as the oil-rich city of Kirkuk. In light of the finance ministry's recent decision, it remains to be seen whether the KDP will consider withdrawing from the governing coalition. Rudaw has learned that the KRG's finance ministry will respond to Sami's claims soon.

Kurdistan workers urge Iraq's top court to order salary release from Baghdad
Kurdistan workers urge Iraq's top court to order salary release from Baghdad

Rudaw Net

time12 hours ago

  • Business
  • Rudaw Net

Kurdistan workers urge Iraq's top court to order salary release from Baghdad

Also in Iraq Coordination Framework delegation to visit Erbil amid Baghdad-KRG strain Iraq transfers military college cadets to Baghdad after tragic deaths Iraqi leaders receive Lebanese president for talks on bilateral ties, security Baghdad decision not to send salaries 'political': Senior KDP official A+ A- ERBIL, Kurdistan Region - Iraq's highest judicial authority, the Federal Supreme Court, announced on Sunday that it has registered a new lawsuit filed by public servants in the Kurdistan Region, seeking an injunction to ensure the continued payment of their salaries. The legal action comes just days after Iraq's finance ministry said it would cut funding to the Region, including salaries. In a statement obtained by Rudaw the court stated, 'Today [Sunday], a lawsuit was filed by [public] employees from the Kurdistan Region demanding the continued disbursement of salaries on schedule.' The plaintiffs are 'requesting the issuance of an injunction order to compel the federal finance ministry to resume salary disbursements' in accordance with a previous ruling - federal court decision No. 224 and its consolidated case 269/Federal/2023, dated February 21, 2024. That ruling obliges both the federal government and the Kurdistan Regional Government (KRG) to ensure regular salary payments to all public sector employees, retirees, and social welfare recipients in the Region. It explicitly states that disputes over oil and non-oil revenues between Baghdad and Erbil must not be used as a pretext to withhold constitutionally protected monthly salaries. 'A decision on the request to issue an injunction order will be made as soon as possible,' the court concluded. The lawsuit comes as tensions have been simmering between Baghdad and Erbil after the Iraqi finance ministry on Wednesday announced that the federal government would suspend all budget transfers to the Kurdistan Region, including salaries for over one million civil servants. In a letter she sent to the KRG, Iraqi Finance Minister Taif Sami claimed that Erbil had exceeded its 12.67 percent budget allocation for 2025 by 13.547 trillion Iraqi dinars (approximately $10.34 billion). She argued that, under rulings from the Federal Supreme Court, further payments to the KRG under such circumstances are legally prohibited. The KRG's Finance Ministry responded on Thursday, accusing the federal ministry of violating the constitution. It added that the Kurdistan Region's share of funds 'must be based on collected federal revenues, not actual expenditures.' Baghdad's move has drawn strong criticism from Kurdish political factions, who held a meeting on Saturday, chaired by the ruling Kurdistan Democratic Party (KDP), and denounced the funding suspension as a politically motivated action that undermines the constitutional and legal status of the Kurdistan Region. The parties said Baghdad must not politicize the rights of civil servants and said that they favored resolving the matter through dialogue. Speaking to Rudaw on Saturday, senior KDP official Hoshyar Zebari questioned the timing of this decision. 'What is the interest of Mr. [Iraqi Prime Minister Mohammed Shia'] al-Sudani and the ruling [Shiite-led] Coordination Framework in igniting the crisis of funding salaries for regional employees at this particular time, while the country is approaching national elections?' Zebari asked, adding that 'perhaps these are technical issues at play,' Zebari stressed. Finances are a frequent source of friction between Erbil and Baghdad. In stopping the payments, Baghdad accused Erbil of failing to hand over its oil and non-oil revenues and claimed that the KRG had received its full share of the federal budget for 2025. The KDP said on Thursday that it would take a 'serious stance' if Baghdad fails to pay the May salaries by June 6, which coincides with the Islamic holiday Eid al-Adha. The finance ministry's decision to cease payments to Erbil came on the heels of the KRG inking two new oil and gas deals with American firms, drawing the ire of Iraq's oil ministry, which has taken legal action. A delegation from Baghdad is expected to visit Erbil and meet with top Kurdish officials and politicians to resolve the financial issues.

Tensions Rise Between Erbil and Baghdad after Kurdistan Salary Payments Halted
Tensions Rise Between Erbil and Baghdad after Kurdistan Salary Payments Halted

Asharq Al-Awsat

time3 days ago

  • Business
  • Asharq Al-Awsat

Tensions Rise Between Erbil and Baghdad after Kurdistan Salary Payments Halted

A sharp dispute has erupted between Erbil and Baghdad following Iraqi Finance Minister Taif Sami's decision to halt salary payments to public employees in the Kurdistan Region, citing violations of the federal budget law. The move has prompted intense backlash from Kurdish officials and increased contacts between US officials and Kurdish leaders, with Washington stepping up pressure on the federal government. On Wednesday, Sami sent an official letter to the Kurdistan Regional Government (KRG), stating that the Finance Ministry could no longer continue disbursing funds to the region, stating that it exceeded the allocated 12.67% share of the national budget. She noted that Kurdistan had surpassed its entitlement by 13.5 trillion Iraqi dinars, which made continued payments legally untenable. According to the ministry, from 2023 through April 2025, Kurdistan generated 19.9 trillion dinars in oil and non-oil revenues but delivered only 598.5 billion dinars to the federal government. The decision to halt funding comes at a particularly sensitive time, with Eid al-Adha approaching, further fueling outrage among Kurdish leaders. KRG spokesperson Peshawa Hawramani issued a strong response, saying that the 'problems with Baghdad will be resolved, and the truth will prevail.' He accused successive governments of pursuing policies of 'starvation and genocide' against the Kurdish people and warned that 'those who abandon the defense of their people's rights will be condemned by history.' Kurdish lawmakers are expected to meet soon with Prime Minister Mohammed Shia al-Sudani to address the implications of the finance minister's decision. Meanwhile, Vian Sabri, head of the Kurdistan Democratic Party bloc in the Iraqi parliament, announced that Kurdish factions would submit a formal protest to the prime minister. She stressed that salary payments should be separated from political disputes, referencing an agreement between Baghdad and Erbil to that effect. Amid the internal tensions, the United States has increased its diplomatic engagement. According to a statement from Kurdistan Region President Nechirvan Barzani's office, he received a phone call from US Secretary of State Marco Rubio, in which both sides discussed the importance of maintaining coordination to promote stability in Iraq and the wider region. The call came shortly after KRG Prime Minister Masrour Barzani visited the US, where contracts were signed with American oil companies to operate in Kurdistan, an act that angered Baghdad, which insists that oil agreements must comply with constitutional provisions governing federal-regional relations. Public policy professor Ihsan al-Shammari at the University of Baghdad said Washington is now applying 'maximum pressure' on the Iraqi government. He noted that US demands have taken multiple forms, including calls to dismantle militias and curb Iranian influence in Iraq.

Iraq seeks World Bank's support
Iraq seeks World Bank's support

Iraqi News

time5 days ago

  • Business
  • Iraqi News

Iraq seeks World Bank's support

Baghdad ( – The Iraqi Minister of Finance, Taif Sami, emphasized on Tuesday the need for technical and financial assistance to steer resources toward initiatives that promote sustainability and the transition to a green economy. Sami's remarks took place during her meeting with a World Bank group led by regional director Maskarine Bahrini in the Iraqi capital, Baghdad, where they discussed measures to improve collaboration in financial reform and environmental sustainability, according to a statement released by the Iraqi Finance Ministry. The meeting addressed World Bank programs related to environmental preservation and enhanced resource management, as well as mechanisms to assist climate change adaptation. Sami emphasized the significance of incorporating financial reform and environmental policy and reaffirmed the ministry's commitment to providing financial resources for initiatives that promote sustainability and the transition to a green economy. She indicated Iraq's need for technical and financial assistance to support these initiatives. Bahrini reaffirmed the World Bank's commitment to assisting Iraq in developing a financial system that considers environmental challenges, as well as its willingness to provide technical expertise and additional funding for projects that address the effects of climate change and promote environmental development.

Iraq reached deal with Ernst & Young to restructure insurance firms
Iraq reached deal with Ernst & Young to restructure insurance firms

Iraqi News

time20-05-2025

  • Business
  • Iraqi News

Iraq reached deal with Ernst & Young to restructure insurance firms

Baghdad ( – The Iraqi government has concluded a deal with Ernst & Young, a multinational professional services network and a major accounting firm, to evaluate and offer suggestions on the performance of government insurance businesses connected with the Ministry of Finance. In a statement to the state-run news agency (INA), the Iraqi Minister of Finance, Taif Sami, explained that the company's responsibility would be to offer technical advice to the ministry on the merger, reorganization, or improvement of these enterprises' existing performance. Sami mentioned that the Ministry of Finance aims to improve the performance of government insurance businesses in line with worldwide best practices and standards. As part of its economic reform agenda, the Iraqi government agreed on Monday to negotiate agreements with two multinational corporations to help increase the country's credit rating. The Iraqi Prime Minister, Mohammed Shia Al-Sudani, has directed his government to negotiate with a firm specializing in international law and global economics to provide consulting services to the Trade Bank of Iraq (TBI), as well as another specializing in public relations to improve Iraq's credit rating.

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