Thread: Archive News - Iraqi Dinar Think Tank - 06/10/2010 - 24/01/2011

Central Bank warns of compromising its independence and calls on the Federal Court to clarify its decision

The adviser to the CBI, Sunday, of jeopardizing the independence of the bank, stressing that he has concerns about the decision to the Federal Court recent decision to link with a number of independent bodies referred to in the Constitution under the chairmanship of the government directly, inviting them to issue a clarification of the resolution about the association and its independence.

The Federal High Court issued a decision on January 18 under, provides a link independent bodies referred to in the Iraqi constitution, prime minister directly, not under the chairmanship of the House of Representatives, and the decision came at the request to show a link bodies of Cabinet Office submitted to the Federal Court in the second the month of December of last year.

He said the appearance of Mohammed Saleh, told the Kurdish news agency (Rn) that "the decision of the Federal Court recently on a link a number of independent bodies and which he addressed the central bank and its association with the premiership, not the House of Representatives ambiguous and not sufficient to affirm the autonomy of the bank."

Saleh added that "it is better that sitting judges of the Federal Court with specialists at the Central Bank to discuss the new resolution of the Court, and affirm the autonomy of the Bank in formulating monetary policy for the country".

And explained that "the decision of the Federal Court, was vague in determining whether the law of the Central Bank of the biggest of the Code of the Council of Ministers on the one hand the monetary authority."

He stressed that "the Bank independent in its monetary policy," noting that "the World Bank and International Monetary Fund and World Bank to give guarantees and protection money for the CBI, because it works to create economic stability in the country."

He warned that "undermining the independence of the Central Bank will lead to opening the door to foreign courts book Iraq's funds, in the case of suits brought against Iraq."

He continued by saying that "Article 103 (paragraph 2) indicates that the central bank answerable to the Iraqi Council of Representatives", warning that "legal argument why he singled out the central bank to do so without the rest of the independent bodies."

And Saleh stressed that "with respect to the decision of the Federal Constitutional Court, but he needs to detail a demonstration, because it is not sufficient to explain all of the Central Bank."

He argued that "Iraq is the founder of the International Monetary Fund and a member of the important and we must preserve the independence of the Central Bank of Iraq in support of Iraq's economy and protect the funds."

The Chapter IV of Part III of the Iraqi Constitution and Article 102, Article 116, it was found that the independent body linked to the Council of Representatives, and there are others linked to the Council of Ministers.

http://www.aknews.com/ar/aknews/2/212640/

Britain confirms delay to enter the markets of Kurdistan and the organization of a joint economic conference next spring

Prime Contractors Union of Kurdistan, on Saturday, the British Ambassador John Jenkins in Baghdad acknowledged in front of businessmen in response that his country is long overdue to enter the markets of the Kurdistan region of Iraq, pointing out that the embassy will be held next spring, a conference with the participation of businessmen and companies from the region and Britain to activate the relations among them.

The head of the Kurdistan Contractors Association Nowruz pumice in an interview for "Alsumaria News", the British ambassador to continuously follow up the subject of investment in the region, indicating that the next stage will see the new directions of major British companies at work in the region.

http://radionawa.com/Ar/NewsDetailN....278&LinkID=155

Shell is preparing for the establishment of power plant capacity of 50 megawatts at Khor Al-Zubair

Issued by a subsidiary of Royal Dutch Shell a competitive tender for the engineering, materials and construction of a new plant for electricity generation capacity of 50 megawatts near the Khawr al-Zubayr plant for gas.

The power plant will release gas plant at Khor Al-Zubair from the public electricity network, thus improving the supply of natural gas and liquefied petroleum gas to the domestic market, while also contributing in creating work opportunities in the region summons, the construction work.

And use the power plant generators Two gas turbo 5 Frame was purchased separately by each of the South Gas Company and Shell.

Khawr al-Zubayr power station will be the property of the project to take advantage of the gas in southern Iraq at the completion of the work and shall be open for operation.
And is about competition on the project to benefit from the gas in southern Iraq to an end. What prompted Shell to issue tender for a new station for electricity generation capacity of 50 MW in the Khor Al-Zubair. That this important event and arthralgia of the draft to take advantage of the gas in southern Iraq, would reduce the amount of electricity derived from the public network in Iraq for the production of gas: "We look forward to continue to apply our experience and our own technology to rebuild the infrastructure of the gas in the country, in cooperation with our partners Iraqis. This was stated by Mounir Bou Aziz, Vice President for the Middle East and North Africa Affairs Business Affairs and liquefied natural gas.

Under the terms of "Convention on the guideline principles" that took place in September 2008 between the Iraqi Oil Ministry and Shell that is setting up a benefit from the gas in southern Iraq as a joint venture for the collection and processing of raw gas that is burned is currently in Basra, that is marketing the gas, initially for use in the market Iraqi local.

And South Gas Company will be the largest contributor by 51 percent in the joint venture company, that Shell owns 44 percent and has Mitsuo Baishe 5 percent of the shares of the joint venture. In June 2010, and approved by the Iraqi government to establish a joint venture with Shell and Mitsuo Baishe.

http://www.alsabaah.com/ArticleShow.aspx?ID=1483

Norwegian company announces its willingness to start exporting oil from northern Iraq

DNO said. That. International or the Norwegian oil facilities and infrastructure in the Kurdistan region of Iraq is ready to start the export of oil field Tauki the province at short notice.

The company confirmed its stated earlier that the export capacity of its facilities in the Tawke of 50 thousand barrels per day at least, indicating that it would announce any new information or material once available to them.

The announcement came after the Norwegian company reported that the Kurdistan Regional Government that it has reached an agreement with Iraq's central government for the resumption of oil exports from the region as of early February next year.

http://radionawa.com/Ar/NewsDetailN....431&LinkID=155

Iraqi lawmaker defends the Federal Court decisions and reduce the fears of "others"

defended the deputy in the Iraqi Council of Representatives for the National Alliance on Monday, the Iraqi Federal Court decisions about linking some independent bodies of the Cabinet, pointing out they are the sole responsibility of interpreting the constitution.

Faleh al-Ziadi told the Kurdish news agency (Rn), "The Federal Court decisions in the last period is suspended the country on its feet and saved the political process that has been rocked," noting that "the most important of those decisions are selecting the largest bloc and an end to the open meeting and the question of the powers of the House of Representatives" .

He considered that "the decision of the Court recent decision to link with independent bodies under the chairmanship of Minister, a decision in conformity with the Constitution according to Article (80) thereof because the executive bodies and their relation to the prime minister Bcilh and not the Prime Minister personally."

Ziadi and reduced fears of others about the topic, stressing that "the Iraqi Council of Representatives will be able to control those bodies through its oversight of the work of the government, nothing will change."

He stressed that "the Federal Court is the only body responsible for interpreting the provisions of the constitution, and the commitment of all its resolutions and all refused to reject her is political."

The Iraqi Federal Court issued a decision in January 18 of this attachment provides independent bodies referred to in the Iraqi constitution, including the central bank, as prime minister directly, not the House.

According Ziadi, "the resolution of administrative and executive issued by a specialist is technically no problem with it but it is a problematic political and not legally or administratively."

"The House of Representatives is the highest legislative authority in the country and watch the government and its work, and can in accordance with the powers that monitors the work of those bodies be associated with the Council of Ministers."

Indicates Chapter IV on "independent bodies" in the Article (102) that is the UN High Commissioner for Human Rights and the Electoral Commission for elections, and the Integrity Commission, independent bodies under the control of the House of Representatives, and organize their work by law.

While recalling Article (103) of the first section is the same that all of the Iraqi Central Bank, the Office of Financial Control, and Communications and Media Commission and the endowment offices, bodies, financially and administratively independent, and the law regulates the work of each of them.

As indicated in paragraph II of the same article that the Central Bank is accountable to the Iraqi Council of Representatives and the Financial Inspection Office and the Information and Communications House of Representatives, while the third point of the same article that linked Endowment Council of Ministers.

http://www.aknews.com/ar/aknews/4/213158/

SEC Charges Former Innospec CEO With Bribery

The former chief executive of Innospec Inc. was charged by the Securities and Exchange Commission with foreign bribery violations for approving illegal payments to Iraqi officials.

Paul W. Jennings allegedly learned of the chemical company’s scheme to pay bribes to win orders for sales of tetraethyl lead in 2004 when he was chief financial officer, and continued the practice when he became CEO in 2005. The scheme involved using a third-party agent to pay off officials at the Iraqi Ministry of Oil in order to sell lead to refineries. Jennings, according to the SEC statement, consented to the complaint without admitting or denying the SEC’s allegations and agreed to pay a $116,092 disgorgement plus prejudgment interest of $12,945, and a penalty of $100,000.

“This is the third enforcement action against an individual responsible for the widespread bribery that occurred at Innospec,” said Cheryl J. Scarboro, chief of the SEC’s Foreign Corrupt Practices Act Unit, in the statement.

The company itself last year pleaded guilty to bribing Iraqi officials and violating the U.S. embargo on Cuba as part of a $40.2 million global settlement.

According to the complaint, Innospec paid more than $6.3 million in bribes from 2000 to 2008 in exchange for contracts worth more than $176 million, raking in a profit of $60 million on those deals. Jennings played “a key role” in the scheme in Iraq and Indonesia, the statement says. He was copied on email conversations with the third-party agent in which the Iraqi officials demanded a 2% kickback, which was paid by increasing the agent’s commission, an act approved by Jennings.

He was also aware of a bribe for the Trade Bank of Iraq in exchange for a favorable exchange rate on letters of credit. Another scheme involved a bribe to ensure the failure of a field test of a competitor product.

A long-term purchase agreement that would have caused $850,000 to be shared by Iraqi officials was busted by the revelation of the U.S. regulators’ probe into bribery by Innospec, according to the statement.

Jennings also knew about bribery going on in Indonesia since about 2004, as it was referred to in emails as “the Indonesian Way,” “the Lead Defense Fund,” and “TEL optimization.”

An unnamed Executive B at Innospec is quoted in the complaint telling Jennings “the bribery [in Indonesia] was a small cost to them, but was very beneficial; it was a small amount of money for the government officials, but could have big importance to them. This is the way it was always done.”

The issue was even discussed during Jennings’ performance review in January 2005.
The SEC complaint also alleges that Jennings falsely signed off on annual certifications saying he was complying with the company’s FCPA compliance policy, as well as on annual and quarterly certifications of documents relating to Sarbanes-Oxley books and records accounting compliance.

http://blogs.wsj.com/corruption-curr...-with-bribery/

Iraqi finance minister vowed to insert Kurdish demands in budget bill

The Iraqi Finance Minister, Rafi' Isawi vowed to incorporate the Kurdish demands in the 2011 Iraqi general budget bill, adding the price for one barrel of oil has been increased to 76.5$.

Rashid Tahir, the deputy Kurdistan finance minister told AKnews after meeting with the Kurdish officials in Erbil, Isawi promised to include all the requests of the Kurdish side in the Iraqi budget bill.

The Iraqi senior official met Saturday evening in the Kurdish capital with the Kurdistan Regional Premier Barham Salih, Kurdistan natural resources minister, Ashti Hawrami and the regional minister of finance, Bayeez Talabani. The assembly in Erbil follows a visit by Salih and a high delegation to Baghdad.

Last Monday Salih meet with the Iraqi Prime Minister Nouri al-Maliki for a series of issues, most importantly, Kurdish budget share, which reportedly has been decreased from 17% to 11.6% . The two sides agreed on resuming Kurdistan oil and complying with constitution to settle the disputes.

The Iraqi minister has promised the Kurdish side that the agreements between Baghdad and Erbil over Kurdistan oil exports and reimbursing the foreign oil companies in the Kurdistan will be included in the 2011 budget bill after the bill will be returned to the Iraqi Council of Ministers for such amendments.

The Iraqi budget bill passed its first reading, despite the Kurdish lawmakers' boycott of the session, threatening to file a suit against in the Federal Court if their objections are overlooked.

Iswai has also assured the Kurdish officials that after the Iraqi Council of Ministers is done with the amendments, his ministry will consider the viewpoint of the Kurdish government on the modified budget before submitting it for final voting in parliament.

Since June 2009 Kurdistan drilled and exported 100,000 barrels of oil per day (bpd) from its fields. The revenues were apparently remitted to the Iraqi development fund. However, since Baghdad declined the recompense the companies (amounting to 42 from 17 countries) the Region suspended the export. This comes while Iraq exported 2,100,000 bpd in 2010.

However, reports after Salih's return from Baghdad state the Iraqi government has agreed to reimburse the foreign companies.

After a visit to Jordan, the Iraqi officials agreed with the International Bank to raise the price from $73 to $76.5 for each barrel of oil, Tahir quoted the Iraqi minister as saying.

In addition to budget and oil contracts, there are some other issues in dispute between Kurdistan and Baghdad. The status of the Kurdistan armed forces (locally known as peshmarga), their budget, and the tenure of some areas are among the other suspended issues.

According to an agreement between Baghdad and Kurdistan Region, the latter is entitled to %17 of the Iraqi total budget until a nationwide population census is held under which the share is amended. However, the population is not conducted but reports indicate the Kurdish share has shrunk to %11.6 in the proposed Iraqi budget for 2011.

http://www.zawya.com/Story.cfm/sidZA...0budget%20bill

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Iraqi lawmaker: Adoption of the 2011 budget law next week

A lawmaker in the Iraqi parliament on Sunday that the 2011 budget law will be approved in next week after it has been "resolved" political differences on it.

Abdel Karim said Hattab, the Kurdish news agency (Rn) that "the draft budget for 2011 be approved by the House of Representatives early next week after it has been to resolve all political differences during the holiday on the contentious issues on the budget items, particularly with regard to the distribution of funds."

He added that "the terms of the budget in 2011 was returned to the federal government was to resolve all the items of contention between the political blocs on their status and to address the deficit and the share of the Kurdistan region and elsewhere."

The Government of the Kurdistan region of Iraq to impose expenses of the sovereign on the financial allocations from the general budget of the country so as to reduce the amounts imposed in the event of about $ 14 billion to 11 billion, while the share of the territory of Iraq's budget 17 percent.

And calls for halving the proportion of the Kurdistan region to export oil from the fields to 100 thousand barrels instead of 150 thousand barrels per day set by the federal government previously as a condition to maintain a ratio of 17% of the Kurdistan region in the general budget.

Hattab said the Iraqi coalition led by Iyad Allawi, "The House of Representatives will continue to closely balance the exchange rate mechanism in 2011, and especially how to deal with the fiscal deficit," which reached more than $ 12 billion.

The Iraqi government has approved the draft federal budget law for fiscal year 2011, so that the budget amounting to about 79.6 billion dollars, so when calculating the oil per barrel to U.S. $ 73, and the rate of export of 2.25 million barrels per day.

It is expected that the budget deficit to reach about $ 12 billion, in what is expected that the rate of spending about 54.7 billion dollars.

Iraq relies He is a member of the Organization of Petroleum Exporting Countries on oil revenues to finance about 95 percent of its annual budget.

The lumberjack that "the budget was delayed more than the current time would disrupt the process of construction, age and will be followed the movement of government and ministries."

And witness the preparation of budgets, the country's financial and approval delays by the government and the House of Representatives because of the large number of objections and criticisms on some of its paragraphs highlighted aspects of exchange and the financial allocations for some government institutions and the three presidencies.

And announced that the advisers in the Iraqi prime minister that the government decided to raise the investment ratio in the slot in the current year budget to 30% at the expense of the operational aspect in order to support investment projects.

The Central Bank of Iraq that the 2011 budget will raise economic growth to 10% of what it was, noting it was built according to the country's economic policy.

http://www.aknews.com/ar/aknews/2/212849/

Erbil, Baghdad agree to tackle stalemates

The Kurdistan Region premier stated Sunday that his cabinet and Baghdad government agreed to solve issues hung between both.

"I met Iraq's finance minister Rafih Issawi yesterday in Erbil and talks went very well to solve the problems between both Erbil and Baghdad government," Berham Salim said.

"I see that a legitimate percent from the Iraqi budget would be for Kurdistan Region."

Issawi arrived in Erbil yesterday and met with Salih, Kurdish oil minister. Issawi promised them to meet all the demands of Kurdish government from the Iraqi national budget, according to Kurdish deputy finance minister Rashid Tahir.

Berham Salih said his visit to Baghdad last week resulted well since his delegation and Iraq's premier agreed to export oil of Kurdistan.

In regard to Kurds to have a security ministry, Salih said Kurdistan has the right to have a security ministry because it is a part from Iraqi constitutionally.

Iraq's 2011 budget is 95 trillion IDs of which Kurdistan has 17 percent according to a political agreement between Erbil and Baghdad until a national census would be conducted in this year.

http://www.zawya.com/Story.cfm/sidZA...e%20stalemates

Southern Iraq's Badra Oil Field to share in decreasing unemployment, MP says:

A legislature, representing southern Iraq's Wassit Province, has said on Monday that the investment of Southern Iraq's Badra Oil Field by foreign investment companies "is expected to decrease unemployment on the area."

"The investment of Badra Oil Field by the Russian Gaspromneft Company, that won the contract to develop the oil field, shall contribute in the emploment of large numbers of unemployed workers and cut short its level," the Legislature, Iman al-Wa'ily, representing the State of Law Coalition, led by Prime Minister, Nouri al-Maliki, told Aswat al-Iraq.

Wa'ily said that the Iraqi government had decided to allocate 117,000 jobs, to be distributed among different ministries, according to a mechanism, followed by the Iraqi Planning Ministry, as well as the employment of large numbers of works by the foreign investing companies, thing that is expected to put an end for unemployment, not only in Wassit Province, but the whole of Iraq.

The Russian Company, Gaspromneft has decided early this month to grant two sub-contracts for two local Iraqi companies to help in developing the Badra Oil Field, that was granted to the Russian Company for US$2 billion (b), for a period of 20 years.

http://en.aswataliraq.info/Default1....&id=140671&l=1