Thread: Archive News - Iraqi Dinar Think Tank - 06/05/09 - 04/09/09

Financial control to open the files of the misuse of funds in the Bremer

President of the Office of Financial Supervision, Dr. Abdul Basit Turki, and the U.S. Inspector General for Iraq Reconstruction Special, Stewart Bonn, the Federal Court of Appeal's decision, and the possibility of moving the case law on abuse of Iraqi capital During the civil administrator Paul Bremer.

And discussed with the Turkish Bonn, examine the draft memorandum of understanding signed between the Supreme Council for the reconstruction of the cabinet, and multinational forces, on the reconstruction in Iraq.

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Political debate on the utilization of the reserve of 40 billion dollars
Life - The Minister of Planning and Development Cooperation Mehdi Hafedh, Iraq's former, to the employment of the cash reserves available to the «Central Bank» Iraq, which is about 40 billion dollars

In addition to the 15 billion to the «Iraqi Development Fund», to face the difficult circumstances which require the employment of all financial resources, to stimulate the development and move the wheel of the national economy to achieve its goals.

Attributed to Al-Hafiz told «life» Reservation «Central» in the recruitment of reserve cash to institutions need to strengthen the independence of independent decision, therefore, depend on the success of these institutions.

And synchronized with the reactions of different economic activities on the theme of the Iraqi government borrowing from the balances of «Central» to support the faltering economy, the most prominent exile spokesman Ali al-Dabbagh, the withdrawal of any part of the reserve in order to meet the expected shortfall in the budget. He noted in a statement that the statement by the Minister of Finance Bayan Jabr on the possibility of fiscal deficits in the budget, does not mean the government was ready to withdraw from the reserve, he said, pointing to its importance in supporting the Iraqi economy. He warned that the withdrawal of cash in the form of ill-portends dire consequences, because the reserve in such a situation will not be able to cover a minimum of commodity imports, noting that the financial plans to the government's economic led to the reserve has not been affected by the impact of global financial crisis.

The Oil Minister Hussain al-Shahristani, referring to his government may be forced to use reserves of foreign currency and loans if oil prices do not rise.

http://209.85.229.132/translate_c?hl...n_p7HbZqbUAL1w

Financial warns of major challenges to the emergence of the general budget

Ministry of Finance has warned of the emergence of significant challenges for the development of the general budget in the event of survival of the federal Ministry of Oil to produce low and the lack of access to energy for export.

He drew a media source in the ministry, according to (and the Iraqi News Agency Information / conscious) to the possibility of Abboraam 2009, thanks to existing reserves, but in 2010 will be a real problem, noting that among other challenges will be to Iraq, most notably the registration of the state budget deficit of Iraq, "the amount (10% ) Maiwdi to show some of the issues of economic policy in Iraq, far-reaching with regard to the role of the State in the development of a rational economic policy and a prudent and based on scientific and logical, which need to be thinking carefully by the government, "and developed a serious form of the right away" on the impacts of severe global financial crisis ".

The source said the "challenges also offer basic source of income to the serious decline over the next two years is the period 2010 2011 is likely to recover after the global economy and this means that the state of relaxation that accompanied the oil revenues in recent years because of rising prices over can no longer be fully reassuring to the presence of high oil prices, noting that the lack of public resources, offset by the prospect of higher rates of public spending can be a security commitment of most of the withdrawal of foreign forces under the Security Agreement with the United States and stressed that the expenditure sections of pressing Salaries, wages and support of the ration card and the network of social protection, and the payment of compensation and other debt will be heavier, "the government."

The spokesman said that "the development of the Iraqi economy and the lack of production system to provide the goods and services are never allowed to pursue any method other than increase oil production at the present time there is no deficit financing and issuance of cash and borrowing the tools of internal and external positive as all the tools the former having a devastating effect on the Iraqi economy, He pointed out that the stimulus of demand will lead to an increase in imports due to the presence of a flexible production system that responds to the needs of the market and provide goods and thus increase the need for creating employment to enter other, explaining that the opposite is where the flooding will happen the rest of our production because of unfair competition with imported goods and the money goes to import. "

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To speed up the claims of parliamentary legislation in the oil and gas law
MPs called for legislation to speed up their oil and gas law, which remains stalled in the corridors of Parliament.

The decision of the Energy Commission in the Chamber of Deputies Abdel Hadi al-Hassani, according to the agency (UPI) reported that the Italian "failure at the age of law means the inability of the parliament and the governing bodies of all three to pass important laws related to the direct interests of Iraqis, particularly since Article 111 of the Iraqi Constitution affirms that oil and gas belongs to all people, and therefore the right of the people we have to enjoy the natural resources.

He added: "We're still working to date the former laws, and we confine ourselves to the conclusion of contracts of service and concession, and the risk is in all cases is not encouraging foreign investors to venture funds in the tune of drilling, drilling and rehabilitation of oil fields to the lack of legal authority supports the position and bring the country's interests", as he put it.

The deputy, Ahmed al-Alwani, the Accordance Front, that "the law is directly linked to complex issues relating to constitutional amendments, but has not been resolved aspects of the organization of powers between the Federal Government and the Kurdistan region, it is very difficult to approve the law"

The al-Alwani, "We disengagement and overlap in the understanding of the exclusive powers of the Constitution, and expediting the approval of the oil law, which is of great importance both politically and economically," as he put it

For his part, MP Abbas al-Bayati explained that "the law was completed in all respects, whether technical or legal"

"The Council of Ministers approved the final draft of the law to meet all the conditions, but the political differences are to be passed by the House of Representatives to the present time."

The "Iraqi political leaders to a summit meeting for the purpose of the agreement on three major issues are, the oil and gas law, constitutional amendments, and election law," he said.

The Council of Ministers had agreed in February 2007 on the draft oil law and described the formal and final, but the political differences of the objected to introducing the debate and then passed in the parliament .

http://209.85.227.132/translate_c?hl...DyCbxyNlMBNhtg

The Telecommunications Sector

Communications sector is among the most vital economic sectors in terms of profitability and economic sense is true without a doubt the m.obile phone companies that have entered the Iraqi market after 2003, but that the economic feasibility and profitability achieved through the performance of these companies at the same time, advanced services to consumers who These are the backbone of profitability and the source of direct and therefore should the m.obile phone companies to upgrade the nature of the services provided and the rhetoric matched by action the promises after the sale, calling from time to time, In a seminar hosted by the University of Mesopotamia yesterday, the first E.xecutive Director of the Zain director of the nature of the challenges faced by his company In order to improve services to consumers.

The ceiling established by the time granted by the Iraqi government to Zain for the mesh and unify the two frequencies Iraqna was raised after the first exit from the bidding and won the second new license, which he said that the period of a few is not enough to unify the frequency which was the most effective technical justification (Bzin) say that before this period after performance has shown a lot of confusion by the public, specialized and even government in this direction announced by the director, the nature of contracts with m.obile phone companies had to follow the process of unification of frequencies and thus improve the services provided through the m.obile phone company, and in particular (Zain) is one of the largest and most m.obile phone companies in the Middle East and in the figures as increasing number of subscribers in Iraq, it must be offset by the volume of services equivalent to the causes of the increasing demand to use m.obile phone after a period of no practice of previous governments before 2003 from the narrow vision of the implications of the presence of telephone companies tank on the national economy.

Hence, the basis of the Declaration of the E.xecutive Director of the Zain Iraq director of the existence of technical problems and other logistics to face the company's efforts to improve services, the need for a campaign to organize Zine disclose information and transparency which is highlighted by the director in more than once to inform the public and consumers on the size and nature of the problem obstacles that exist and the functioning of the cadres of the company and the mutual obligations under the contract (work permit) between the government and certainly of the Zain hearsay and confusion raised against the performance of the company during the past six months that the m.obile communications and, in particular, touches the lives of people and a burden on the income levels if The services in this sector is poor, however, satisfy the measurements and the global nature of technological development and technical struck this vital sector.

http://209.85.227.132/translate_c?hl...Kdws1EQf9Yvieg

Parliament denies the oil & gas law to the secretariat of the Council of Ministers

Member of the Commission denied the oil and gas in the parliament, Ali Hassan al-Blue re-oil and gas law to the secretariat of the Council of Ministers for approval again.

Blue said in a press statement that the Commission on oil and gas re-parliamentary Supplements on the Law of oil and gas to the Council of Ministers for approval and annexation of the law.

He added that the law supplements have not been ratified so returned for approval by the Government and incorporated with the main law.

The member of the Kurdistan Alliance said most of the members of the House are determined to ratify the Law of oil and gas as soon as possible, ruled out the postponement of the ratification of the oil and gas law to the next parliamentary session.

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Originally Posted by Seaview

Financial control to open the files of the misuse of funds in the Bremer

President of the Office of Financial Supervision, Dr. Abdul Basit Turki, and the U.S. Inspector General for Iraq Reconstruction Special, Stewart Bonn, the Federal Court of Appeal's decision, and the possibility of moving the case law on abuse of Iraqi capital During the civil administrator Paul Bremer.

And discussed with the Turkish Bonn, examine the draft memorandum of understanding signed between the Supreme Council for the reconstruction of the cabinet, and multinational forces, on the reconstruction in Iraq.

http://209.85.229.132/translate_c?hl...pazhuyLeDV_nqA

Financial control Bremer calls for prosecution of abuse of Iraqi money to its disposal

The Office of Financial Supervision to the prosecution of former U.S. civil administrator in Iraq Paul Bremer, on charges of misuse of funds in Iraq.

A statement issued by the Office of Financial Supervision said the Chief of Staff Abdul-Basit Turki called on during a meeting with the Inspector in charge of Iraq reconstruction, Stuart Bonn to initiate judicial proceedings against Bremer.

For his part, and the media relations officer in the Office of Financial Supervision Emad Ismail for the Middle East that the right hand to make any complaint against the Americans, who used the public money in Iraq is bad.

He pointed out that some aspects of exchange in the reconstruction and the economy and in different directions are calculated dissipated and illegal and that the money was distributed to associations and organizations and for the reconstruction of Iraq, or the resumption of work, while everything in that period was stalled.

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An interview with the iraqi minister of transport

19th May 2009

Niqash met Iraqi Minister of Transport, Amer Abdul-Jabbar, to discuss the development of the country’s transportation sectors and the different challenges hindering growth.

Niqash: Can you give us an idea of available air transport routes and those that will open soon?

Abdul-Jabbar: Seven months ago air transport routes were very limited in Iraq. There were flight routes to only Amman, Dubai and Beirut. We then started to expand and opened new routes. We raised the issue with the ICAO [International Civil Aviation Organization] and we started to meet the required conditions in our airports. The level of security was adequate enough to invite international companies, specialized in aviation, to visit Baghdad airport to see the progress. Iranian and Turkish airlines came and the Istanbul-Baghdad route was approved by Turkish Airlines – an airline recognized by the European Aviation Authority. Another route was opened, the Baghdad-Tehran-Mashhad, and then the Baghdad-Greece route. Following that an air transport memorandum of understanding was signed between Baghdad and Athens, and a Baghdad-Sweden route was opened for the first time in 19 years.

These moves encouraged other countries to open channels of communications with the Civil Aviation Authority in Iraq. Now we are negotiating to open new routes between Baghdad and London, Pakistan, Bombay, Bahrain and Qatar.

Niqash: How do you explain the poor services in Iraqi airports including the loss of baggage, transportation difficulties, the lack of discipline in flights schedules, and other problems?

Abdul-Jabbar: We admit that there are mistakes and this is because Iraqi airports stopped operating in the 1990s. They were badly affected by economic sanctions and the no-fly zone. This has impacted on our work and our level of experience.

When we started taking small steps, we were faced with huge security and financial challenges. In general, we are now on the right track and we have concluded agreements with international companies and brought in foreign workers. Airport services will be handled by international companies or together with these companies. At the same time, foreign experts from Britain were contracted to manage Iraqi Airlines. As of early May, passengers will feel the difference in the Iraqi airports.

As for the difficulty faced by people entering the airport, we have given an international company a contract to monitor the airport, provide two additional entrance gates for passengers and, as a result of the rise in the number of flights, we will soon open a third hall. We have also inaugurated the Baghdad Airport Hotel for the first time in 19 years to provide passengers with accommodation when there are delays in flights. Additionally, we have asked airlines to respect flights schedules.

Niqash: Why don’t you buy new planes to meet air transport needs?

Abdul-Jabbar: Iraqi Airways is a self-financing company. Its financial situation does not allow it to purchase a new modern fleet. For that reason, we rent planes and this is a common practice. Many airlines rent planes; our problem is that we can rent enough planes but there are not enough routes. Every time we open a new route, we rent a modern plane. We are now negotiating the rental of two new planes.

Niqash: The management of airports run by private companies is causing problems.

Abdul-Jabbar: There are six airports in Iraq: Sulaimaniya and Erbil airports run by the Kurdish government; Mosul, Baghdad and Basra airports run by the Ministry of Transport through the civil aviation authority; and Najaf airport. In general, there are no problems in the management of the first five airports, but the problem is with the Najaf airport established by Aqiq Kuwaiti Company in an investment contract signed between the company and Najaf province. It seems that the company has poor capacities and thus was late in delivering and equipping the airport. We are now pressing the company to abide by the terms and conditions set by the ICAO to start operating the airport at full capacity. Initially, we allowed the airport to operate during day time only. The company must also provide aerial surveillance and communications. This is currently being done by the Iraqi civil aviation authority because the company lacks the capacity to do so. This is part of its tasks according to the US $50 million contract signed with the province. In return, the contract stipulates that the company will receive the airport’s revenues for five years.

As a ministry, we have given our technical remarks and specified the company’s failures in managing the airport. We submitted a letter to the Prime Minister and we gave the company 45 days to finalize the work that needs to be done in order to allow us to operate the airport day and night. If the company does not respond, we will take necessary legal measures. This is the second and final warning to be sent; we can either terminate the contract and return the airport to the control of Iraqi civil aviation authority in coordination with Najaf province or close the airport.

Niqash: Let us move to road transport. For five years, the ministry has not interfered in internal road transport and there is chaos on the streets. How are you going to manage it?

Abdul-Jabbar: Since 2003 many cars entered Iraq and were used as taxis. Violations, with the poor security conditions, became a common practice. People drive cars without having driving licenses and they do not respect traffic regulations. Now, with the improved security, we decided this year to re-operate transportation lines and organize private transport. We started by specifying passenger loading and unloading areas, destinations and parking stations, taxi and bus prices, and regulated the colours of cars in order to prevent private cars being used for public transport. Taxi cars will be orange and white and they will be obliged to equip their cars with signs on their routes and costs. This step will put an end to the chaos and bring order to the road transport sector.

At the same time we are seeking to reduce transport fares and we submitted a proposal to the council of ministers to reduce petroleum prices to cater for drivers and car owners. Petroleum prices in Iraq are higher than prices in world markets. We hope that the council of ministers will positively respond to our proposal.

Niqash: Public buses are working slowly, taking long routes through congested streets. Why did the ministry start these bus routes?

Abdul-Jabbar: We bought 250 yellow German Mercedes buses to be used for internal and external [between provinces] transport and to provide people with cheaper transport, create competition, and pressure the private sector to reduce its prices.

For example, private sector buses charged 50 thousand Iraqi dinars [approximately US $42.5] for the Baghdad to Mosul route. Our modern air-conditioned buses cost 13 thousand Iraqi dinars [approximately US $11]. After two days of operating our buses, the private sector was obliged to reduce its prices by 20%. This was our purpose. If there are no other options, and we continue to just impose penalties on those charging high prices, we would only create transportation crisis and an unhealthy condition that would not bring about any positive results.

Niqash: What about sea transportation? There are currently two operating ports (Umm Qasr and Khor Al-Zubair) but four non-functioning ports. Yet, instead of rehabilitating these ports, there is talk of a ‘Grand Iraqi Port’.

Abdul-Jabbar: Since the fall of the former regime people have been talking about the Faw port, Basra grand port and Iraq’s grand port. These are only names given to one strategic project that will bring about a qualitative leap for the Iraqi economy. Boredom and despair began to seep into people’s hearts because of the many statements on this major project, the largest economic project ever. The project is not only expected to meet Iraq’s commercial needs, but is the first step towards creating the ‘dry Iraqi canal’. Almighty God granted Iraq a strategic location to connect with Europe through Turkey and Syrian ports. The strategic location of Iraq makes it the shortest transportation route for goods transported between northern and southern parts of the world and vice versa.

We are among those waiting for this dream to come true. We know that such a huge project will face international pressures and regional competition and it will not easily see the light of day. When I became responsible for the ministry, I invested lots of time and effort in this project. I reviewed the studies submitted to the ministry from their technical aspects. The study submitted by the Italians, which was prepared through a grant made by the Italian government to the Iraqi ministry of planning, is the study we have chosen and supported. We hope that the government will allow the implementation of the port project according to the investment law which allows the government to contribute 2.8 billion Euros to the project’s first phase.

http://www.niqash.org/content.php?co...id=2447&lang=0

Shahristani signed joint cooperation agreement in oil & gas with his Egyptian counterpart

20-5-2009 ... Signed and the Iraqi Ministries of Oil and Egyptian agreement to activate joint cooperation in the field of oil and gas in Baghdad.

Said Oil Minister Hussain al-Shahristani, the agreement provides for the introduction of the Egyptian companies to participate in the exploration and development of Iraqi fields, as well as drilling wells, laying pipelines, building reservoirs and others. The Egyptian al-Shahristani said the companies have the expertise in the development of oil fields, adding that the country needs a lot of companies to develop fields and digging wells. He continued to say that the Egyptian companies will be the manufacture of equipment for Iraq at discounted prices, pointing out that the ministry agreed to the formation of companies (Iraqi - Egyptian) common in this context. He continued, "we have the invitation of Egyptian companies to enter into future licensing rounds, for the rehabilitation of the fields."

For his part, the Egyptian Petroleum Minister Sameh Fahmi, a great opportunity for Egyptian companies in the development of oil and gas sector of Iraq, he said, adding, "We were going to play an important role in the development and cooperation." He added that the coming period will witness a strategic cooperation in the field of oil and gas, in addition to the economic, cultural and security. He continued to say that the Egyptian side will be opened next week, his office in Iraq to give effect to the Convention, and to develop plans for future work.

http://www.nmc.gov.iq/mnews/2009/5/20_7.htm

Sharp drop in demand for dollar on Wednesday

Demand for the dollar came down in the Central Bank of Iraq (CBI) auction on Wednesday, reaching $134.165 compared to $214.030 million in the previous session.

“The demand hit $44.765 million in cash, covered by the bank at an exchange rate of 1,176 Iraqi dinars, and $89.400 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 19 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=113439