Thread: Archive News - Iraqi Dinar Think Tank - 24/01/201 - 23/07/2011

Experts: 75% of financial transactions daily in Iraq is controlled by control

Economists warned of the consequences of turning Iraq into an arena for money laundering of some neighboring countries, particularly drug money and arms, smuggling, embezzlement and bribery, as well as those used to finance terrorism.

Expert Hilal Taan is a large number of banks and private companies working in the field of money transfers, money laundering Mrakza in most provinces, because 75% of financial transactions daily in Iraq is controlled, because of the absence of government control, he says.

National Alliance MP Abdul-Hadi al-Hassani is the other warned of the adverse economic effects resulting from the spread of the phenomenon of money laundering, attributing the recovery of this phenomenon to an increase in money obtained illegally, Calcrqat and drug and arms trafficking, slavery and extortion

http://radionawa.com/Ar/NewsDetailN....441&LinkID=155

Shahristani: reports pointed to the approval of oil contracts in Kurdistan are inaccurate

Deputy Prime Minister for Energy, Hussein al-Shahristani, the reports quoted Maliki as saying that the Baghdad government will stick to oil production sharing contracts signed by the Kurdistan Regional Government with foreign companies as inaccurate.

Shahristani said in an interview with Reuters news agency that all the contracts signed by the federal government were service contracts, adding it expects to convert all production-sharing contracts in the region to service contracts until accepted by the federal government.

Shares in the Norwegian company DNO. That. Or DNO has risen by about five per cent after media reports quoted Prime Minister Nuri al-Maliki as saying that Iraq would abide by the production sharing contracts signed by the Kurdistan Regional Government with international oil companies.

http://www.ipairaq.com/index.php?nam...onomy&id=35304

State building, economy hinge on security for investors – PM

Iraqi Prime Minister Nouri al-Maliki on Sunday said that the building of the state, strengthening the economy and providing service for citizens all hinge on security efforts exerted for companies investing in Iraq.

“The masses constitute guarantees and resources of information that spotlight security imbalances, including the detection of smugglers,” Maliki said during an address in a conference discussing mechanisms of coordination between the central government and provinces, which was held in Karbala today (Feb. 6).

“The local efforts furnished by the provinces to security agencies are important for them to undertake their tasks,” he added.

Maliki noted that governors are authorized to sign contracts with investor companies and seek more cooperation with the private sector, which should help settle the problem of housing suffered in Iraq.

The premier also underlined the importance of refurbishing the agricultural sector.

“We will sign contracts with major companies worldwide in order to obtain new systems and benefit from the development in the agricultural field,” he said.

http://en.aswataliraq.info/Default1....page&id=140865

Maliki Capitulates on the Kurdish Oil Deals

The following article was published by Reidar Visser, an historian of Iraq educated at the University of Oxford and currently based at the Norwegian Institute of International Affairs. It is reproduced here with the author’s permission. The opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Comments to AFP by Iraqi Prime Minister Nuri al-Maliki today on the oil deals signed by the Kurds are nothing short of sensational. That exports from the Kurdistan fields will go ahead has been rumoured for some time, but the more crucial point is the clear assertion by Maliki that the contracts signed by the Kurds with foreign companies will be honoured.

To appreciate the extent of the change of Maliki’s position, one needs only remember the vehement criticism of these bilateral deals by his point men on energy issues like Hussain al-Shahristani and Abd al-Hadi al-Hassani. It was this kind of opposition that led to the breakdown of the first export attempt back in summer 2009. In fact, just weeks ago, oil ministry officials were adamant that even if the exports were to be resumed, costs only (and not profit) were to be paid to the operating foreign companies by the central government.

In terms of the perennial debate about the constitutional right of provincial entities to sign contracts without reference to Baghdad, Maliki appears to sidestep the question somewhat by offering an ad hoc justification to the effect that oil drilling in the Kurdish areas is technically more difficult than in the south and for this reason it is permissible to accord greater profits to the companies that invest in the north than those operating in the south (where technical service contracts and more modest per-barrel remuneration have been the norm for foreign companies dealing with Baghdad). In this way, it looks as if the affair has been dressed up as the oil ministry “recognising” the deals because of the special geological challenges presented by the Kurdistan region, but it still begs the question of whether any deal signed by the Kurds in the future, regardless of profits etc., will automatically be recognised. The question is important, because according to the constitution, existing governorates can do exactly the same as federal regions as far as oil is concerned, and the issue of bilateral energy deals between governorates and foreign companies therefore forces its way onto the agenda as a potential domino effect that could gradually make Baghdad less influential in the energy sector (and, arguably, in governing the country as a whole). What if an existing governorate can reiterate the Kurdish argument about having a particularly challenging environment for drilling oil or gas?

The political dynamic that has enabled these development has its roots in late 2009, when it became increasingly clear that Nuri al-Maliki was failing in an attempt to turn his State of Law coalition into a truly national political entity with appeal beyond the Shiite-majority areas of Iraq. Further weakened by the de-Baathification issue and results in the 7 March 2010 elections that were worse than he had hoped for, he needed both Iranian and Kurdish support to clinch a second nomination and to form the government.

The Iraqiyya component in the government that was declared in late December was surprisingly strong and the Kurdish one comparatively weak, but Maliki has since come under fire for issues such as attaching the independent commissions to the executive, prompting protests from both the Kurds and Iraqiyya and even a surprise initiative to establish a new federal supreme court. In this kind of situation he is giving concessions to the Kurds even though they alone don’t have the votes to keep him in office. These developments are also a major defeat for his oil minister, Shahristani, who was unable to ramp up short-term production in the south and thereby became dependent upon comparatively modestly sized exports from the north while he is waiting for his own string of deals with foreign companies to come to fruition.

The big question is how Iraqiyya will react, since its constituencies are critical of the Kurdish oil deals and concessions to the Kurdistan Regional Government in disputed questions generally. In that kind of perspective, the logical thing for it would be to withdraw from government and focus instead on an opposition role headed by the speaker of parliament, Usama al-Nujayfi (Adnan al-Janabi of Iraqiyya also won the presidency of the parliamentary oil and gas committee today). However it does seem its members are more concerned with more Byzantine ways of seeking power in government, including vice presidencies (Hashemi) and strategic policy councils (Allawi).

In fact, Iraqiyya is rumoured to be asking the Kurds for help in both of these issues, signifying the extent to which Arbil has managed to come out on top in the latest developments despite a somewhat adverse point of departure. At the same time, these latest developments mark a triumph for a primitive, identity-oriented and Balkans-inspired political agenda of potentially destructive ethno-nationalism that many Iraqis had been hoping was on its way out.

http://www.iraq-businessnews.com/201...ish-oil-deals/

6-year prison sentence on a U.S. officer on charges of fraud in Iraq contracts

Ruling on a captain in the U.S. Marine sentenced to six years in federal prison Monday on charges of conspiring with his wife to take over $ 1.7 million in government contracts in Iraq.

He admitted Eric Schmidt, who is still serving with the First Infantry Division at Camp Pendleton, Calif., pleaded guilty in the exercise of fraud and conspiracy to provide false tax return concealed illegal income from his plan.

And recognized his wife, Janet pleaded guilty in regard to failing to submit a report on the amount received in illegal dealings. It faces a provision could be up to about three years behind bars, is scheduled to be issued by the provision in 7 of March next.

According to court documents, the naval officer (40 years) has been around for decades for an Iraqi company (Almthoad) during the mission, which lasted a full year in Iraq in 2008.

After being awarded Almthoad contract, the Jean Schmidt used the money from the company to buy the products of less or lower quality than those required by the contract and handed over to the Marines in Iraq, to witness her husband later falsely that the company Almthoad provided the number and type of goods required.

During the sentencing hearing, she indicated the U.S. Criminal Court Judge Virginia Phillips that in addition to illicit behavior, the couple caused Schmidt to the unity of individuals in the U.S. military access to a smaller number of first-aid material and explosives detectors.

The couple caused a loss of U.S. Defense Department's $ 169 million, while revenue suffered internal service loss of about 460 thousand dollars, has ordered the couple to pay full compensation for both agencies.

During the investigation, authorities placed her hand on Fajrtin cars and cash of about 40 thousand dollars.

Said Stuart Bowen, Special Inspector General for Iraq Reconstruction, "the couple Ahtala on U.S. taxpayers, and tricks of the Iraqi people and betrayed the confidence placed in them, and will push the price for criminal offenses."

For his part, said Chris Hendrickson, special agent in charge in the Criminal Defence Service of the Western Field Office, said that "fraud was an example of the corruption that has an impact Mbacraly the military capabilities of the Marine Corps in Iraq."

"The Iraqi contractors bought this Bluejacket cash and gifts, and a piece of their contracts."

http://www.aknews.com/ar/aknews/2/216657/

A parliamentary committee: oil and gas law requires political consensus for adoption

The Commission on oil and energy parliamentary, Tuesday, that the law of oil and gas requires a political consensus between the blocks before they are discussed within the Commission, stating that the law may be voted on during the ten days provided that the political agreement.

The committee member said Bayazid Hassan, told the Kurdish news agency (Rn), "The oil and gas law had not been included so far within the functions of the Commission on oil and gas representative," noting that "the law needs to be political consensus between the blocks before going it to the House of Representatives."

And that "the absence of political agreement means that the law is passed even if the amendments to it," pointing out that "the law may be voted on in a period not to exceed ten days, subject to the political consensus."

And the failure of the House of Representatives to pass Bdorth previous oil and gas law, which was expected to rise if approved oil situation.

In the opinion of a number of experts involved in studies of oil that Iraq lacked until now to the political oil and clear-cut, which was a reason to delay the development of its oil wealth.
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http://www.aknews.com/ar/aknews/2/216569/

2011 budget: Iraqi Parliament further postpones second reading

An MP from the Ahrar bloc which belongs to the National Coalition (NC) said on Monday that the Iraqi parliament voted during its 30th session today to further postpone the second reading of the 2011 federal budget.

Riad al-Zaidi told AKnews that the decision was taken in order to further audit the budget before ratification.

"Postponing the ratification of the second reading is a good thing," he said, indicating that the articles of the budget can only become more concise through further review.

Earlier this week, the Ahrar bloc proposed cutting 15% from this year's budget, and distributing the released funds among the Iraqi people in order to improve the economic situation of a large social segment that the bloc considers to be living below the poverty line.

Najeeba Najib, a member of the Finance Committee in the Kurdistan Blocs Coalition (KBC) told AKnews earlier that the second reading of the federal budget for 2011 would be discussed today after being modified by a committee formed by the Minister of Finance and members of the parliamentary Finance Committee.

On January 16 the Iraqi parliament completed the first reading of the budget bill for the current year amid objections and reservations concerning some of its provisions.

http://www.zawya.com/Story.cfm/sidZA...cond%20reading

Perusal for judiciary in Iraqi parliament delayed

The Iraqi parliament put off today's session to tomorrow, after reading the first reading of the draft law of the Supreme Judicial Council, according to the KBC member.

The Deputy, Sheriff Soliaman told AKnews that the Iraqi Parliament Speaker, Osama Nujaifi raised today's meeting to tomorrow after the postponed of the second reading of the law of the federal budget draft for 2011 and the first reading was read for the draft law of the Supreme Judicial Council.

"Today's meeting was limited to discuss the ration card items and mechanisms adopted in the provision and distribution of flour exclusively that is experiencing scarcity in distributing it with in most of the provinces."

"The parliament had decided to host the acting Trade Minister, Rose Nuri Shaways to attend at future meetings, and form a parliamentary committee to work with the Trade Ministry to follow-up providing the food basket for the Iraqi people after 90 deputies proposed a request about that ".

"The Committee will follow up the exchange of the amounts for the past four years in which the ration card items were not distributed to citizens, and will investigate the validity of the non-arrival of such substances to some provinces."

Several Iraqi provinces including Baghdad witnessed demonstrations and protests against the lack of services, unemployment and the irregular distribution of ration card items.

"Nujaifi called the Finance Committee to submit a report on the budget that will be read a second reading at Tuesday meeting to explain in its report the points that led to return the budget to the government."

The Ministry of Planning confirmed that one of the most prominent obstacles of the advancement of economic reality in the country is the government's continued distribution of ration card items after seven years of the political change in the country.

The ration card system was adopted in Iraq after the UN Security Council Resolution No. 661 dated 6 August 1990, imposed economic sanctions on Iraq following its invasion of Kuwait. The financial allocations for the ration card amounted in 2010 budget to three trillion and 500 billion Dinars (about 2,9 billion dollars) and allocations reached in 2009 for the ration card up to four trillion Dinars.

The Trade ministry announced that it had completed the preparation of a new road map for the distribution of card items that emphasizes the need to give priority to the poor in the country.

http://www.zawya.com/Story.cfm/sidZA...ment%20delayed

Trade Minister to address ration card cuts in parliament

A deputy from the Wasat Movement said on Monday that Trade Minister Rozh Nuri Shaways has been summoned to parliament to discuss the government's controversial food subsidizing ration card cuts, central to many of the public protests arising in Iraqi cities in recent days.

Mohammad Iqbal told AKnews that Parliament Speaker Osama Nujaifi cut short discussions about the ration card during the 30th parliamentary session today at the request of a number of deputies who called for the Trade Minister to be present during the talks, "so that the discussions would be effective and have useful results," Nujaifi said.

Last year the Trade Ministry announced cuts to the ration card system that provides economically challenged Iraqi families with cut price staple food items. The cuts effectively reduced the scope of the subsidies to include just four items; flour, sugar, cooking oil and rice, and limited eligibility by excluding state employees earning over $1,250 per month.

The Planning Ministry announced at the same time that the continued distribution of the ration cards was one of the most prominent obstacles to economic development in the country.

The ration card system was adopted in Iraq after the UN Security Council imposed economic sanctions on Iraq following the invasion of Kuwait in 1990.

In the 2010 federal budget, close to $2.9 billion was allocated to the ration card scheme which had cost the country more than $3.1 billion in 2009.

The system has faced increasing criticism in a number of Iraqi provinces where distribution of the items covered by the scheme is often delayed or incomplete and in some parts of the country, the scheme has stopped functioning altogether.

Protests breaking out across Iraq in recent weeks have focused on poor public services, rising unemployment and cuts to the ration card system, all contributing to an overall slump in living standards for many Iraqi citizens.

http://www.zawya.com/Story.cfm/sidZA...n%20parliament

Originally Posted by Seaview

Shahristani: reports pointed to the approval of oil contracts in Kurdistan are inaccurate

Deputy Prime Minister for Energy, Hussein al-Shahristani, the reports quoted Maliki as saying that the Baghdad government will stick to oil production sharing contracts signed by the Kurdistan Regional Government with foreign companies as inaccurate.

Shahristani said in an interview with Reuters news agency that all the contracts signed by the federal government were service contracts, adding it expects to convert all production-sharing contracts in the region to service contracts until accepted by the federal government.

Shares in the Norwegian company DNO. That. Or DNO has risen by about five per cent after media reports quoted Prime Minister Nuri al-Maliki as saying that Iraq would abide by the production sharing contracts signed by the Kurdistan Regional Government with international oil companies.

http://www.ipairaq.com/index.php?nam...onomy&id=35304

Shahristani: Iraq government want to modify the Kurdish oil contracts

Hussain al-Shahristani said Iraqi Deputy Prime Minister on Tuesday that production sharing contracts signed by the KRG with foreign oil companies should be turned into service contracts for approval by the central government.

The al-Shahristani, who is overseeing the oil sector to the Iraqi government in Baghdad that did not reach the settlement with the province after the semi-autonomous Iraqi Kurdistan, although from the comments quoted Maliki as saying that the Baghdad government will stick to oil production sharing contracts signed by the Kurdish government with foreign companies.

http://radionawa.com/Ar/NewsDetailN....530&LinkID=155