This news letter today is mostly about the paying of these pensions in Iraq and how it relates to the continuing RV saga.
As I have said many times in previous news letters, when we see repeatedly many articles about a subject matter in a short period of time – PAY ATTENTION. This news is VERY important!
So I decided to dedicate almost entire news letter to this subject matter since I believe it is that important.
Plain and simple- it is pressure, pressure and more pressure on the Abadi government to clean up the corruption and get these reforms implemented.
As the news letter continues you will see the results of this pressure and one of the long awaited reforms is about to be voted on ….finally implemented….lol….lol…This is one of the golden nuggets for today.
It all comes down to a paradigm shift in the way the Iraqi government has been run for the last 30 years. It is not as easy task but one that will be AND must be overcome (or we will not see any RV).
Today is Wednesday October 14th and still no RV.
So why is this topic so important about these late pension and salary payments. Let us look at the issues involved.
The government shut off these payments in territories occupied by ISIS / DAASH. They did this to prevent the funds from getting into the hands of the terrorists. Three ways the terrorists were getting this money: 1) defecting Sunnis over to ISIS, 2) stealing it from the Iraqi people 3) threats of violence and fear of death if they did not forfeit their pension money to ISIS. So the solution was to cut off the payments until these regions could be cleared. Now that some of them are being cleared there is yet another issue evolving, the issue of where did you get all your money from since your salary did not provide for it?
Quote from the articles below – “The government is facing a series of complications in the process of applying the principle of “Where did you get this? That the Prime Minister recently announced his intention to apply it in line with the escalating protests in several parts of the country”. Their words not mine. No hype, No rumors, just the FACTS.
This issue is being raised too by the integrity commission since disclosure of their net worth full financials is not accurate in most cases since their salaries did not pay nearly as much as they are worth. Also the number of deputies and ministers who did not disclose their financial interests during the current year amounted to 208.
I quote from the article: “caused by the accumulation of problems in the region and the MOST IMPORTANT of which delay payment of salaries, “.
MASS CHANGE: THE DELAYED SALARY PAYMENTS CAUSED THE EVENTS AND THERE IS NO INCITEMENT
Chairman of the mass change parliamentary Hoshyar Abdullah said that the main reason of current events in Sulaimaniya is delayed region staff salaries for more than three months.
Abdullah pointed out that what is happening today in the province of Sulaymaniyah is caused by the accumulation of problems in the region and the most important of which delay payment of salaries, as there is no country in the world delayed the salary payments more than three months and stands people bystanders without feeling anger and resentment, explaining that resentment overwhelming when people addressed to all parties within the region and there is no incitement by any political party against another and expressed Abdullah hoped the deal the government and parliament the region and the political forces and Kurdish parties with the situation wisely and objectively.
SECURITY FORCES PREVENT THE PRESIDENT OF THE KURDISTAN REGIONAL PARLIAMENT FROM ENTERING ERBIL
(Independent) .. Kurdish security forces arrested the speaker of parliament in the Kurdistan region of Iraq, Mohammed Yusuf, and prevented him from entering Arbil, in the escalation of the political crisis that has shaken the region, which is at war with militants of the “Islamic state”.
A personal assistant to the speaker of parliament, the pro-Kurdistan Democratic Party forces, ordered him to return to the road from Sulaymaniyah to Erbil, where the Parliament of the region.
He accused the Democratic Party of Kurdistan (PUK), which controls Erbil, Curran Party (Movement for Change), which belongs to the opposition speaker of parliament, provoking violent protests in which five people were killed.
Darwin said Rahim, personal assistant to the speaker of parliament, said that “this development very seriously.” The move comes after protesters attacked a number of Democratic Party offices in Sulaymaniyah and set on fire, in the worst unrest in the region that are stable, years ago.
The demonstrations began in Sulaimaniya, demanding the payment of overdue salaries of government employees. Then it evolved into protests demanding the ouster of President of the Region, Massoud Barzani – aged 69 years, which ended his mandate in August.
The party said Curran, who is based in Sulaimaniyah, too, and enjoy great popularity there, that the Democratic Party had told him late Sunday that he must minister in the Kurdistan Regional Government, not to return to work.
He accused Yusuf Mohamed dominant Democratic Party on the region by trying to carry out “a coup”. The Himin Hawwarma, a senior official in the Democratic Party, in a tweet on Twitter, which he said “Goran is no longer in the government.”
And increase the old divisions of the crisis in the region, which has been located is separate two administrations, one headed by the Kurdistan Democratic Party in Arbil and Dohuk, and the other dominated by the Patriotic Union of Kurdistan in Sulaimaniya.
Democratic Party and the Patriotic Union said the failure to protect Sulaimaniyah offices of the attack, and that he cleared a number of them from working during the weekend.
Democratic Party and close the station offices (so that if) of the party Curran television in the cities of Erbil and Dohuk.
PARLIAMENTARY INTEGRITY REVEAL MINISTERS SEIZED THE WEAPONS: WE SEEK TO STOP THEIR SALARIES POLITICAL
Since 10/12/2015 14:35 (Baghdad time)
Special scales News Detection of the Integrity Committee member of the parliamentary Adel Nouri, Monday, for addressing the public pension body to stop some ministers and those with special grades of retired officials’ salaries because of non-disclosure of their financial interests, stressing that mostly divested more than 150 pieces of weapons especially Bovwag Hamayatem.
He said Nuri’s / scales News / that “most ministers and some officials with special grades of retirees did not disclose the financial accounts at all and there wrapping on money that were paid by them numbers,” noting that “there are correspondences retirement for the General to stop their salaries until the disclosure of their net worth full financial “.
He said the Integrity Commission, the parliamentary member, said, “Most of these ministers and officials divested more than 150 pieces of weapons / 70 pistol +70 Kalashnikov / was dedicated to Hamayatem and strange in the subject did not know the fate of the weapons and where it turned,” explaining that “the committee formally relay through books for all Wazzraat on the subject through the special forms prepared by the Parliamentary Integrity receivables to detect these officials and ministers. ”
It is said that “the number of deputies and ministers who did not disclose their financial interests during the current year amounted to 208 Nwabousera, according to the Commission on Public Integrity.”
The “government is facing a series of complications in the process of applying the principle of” Where did you get this? That the Prime Minister recently announced his intention to apply it in line with the escalating protests in several parts of the country “.
The Good News
ABADI OFFICE: WE ARE WORKING TO TURN IRAQ INTO A STATE PRODUCTIVITY 10/13/2015 0:00
Government orientation to maximize resources BAGHDAD – morning In an effort to cope with the drop in oil prices, which form the basis of the budget, Economic Adviser to the Prime Minister revealed the appearance of Mohammed Saleh that the government two options first is confronting all expenses that are not important in the financial sustainability, and the other option is to expand some of the state’s resources, while spokesman Office of the Prime Minister that the government is working hard to diversify income sources and create an active role for the private sector.
Saleh said, in a press statement, that there are areas of corruption under the doors of exchange in the budgets and the government addressed strongly without retreat and we’re going to end it as it provides many billions of budget», indicating that «in relation to the budget of 2016, we had a choice in these conditions with lower oil prices which form the basis of the budget and the landing means landing our resources, the first is to address each expenditure that are not important in the financial sustainability, and the other option is to expand some of the state’s resources.
Saleh explained that even borrowing resources priorities of the mismatch internal sources, including the State Department, which are types of which few sources of cost and other medium-cost and priority certainly few sources of cost because the hedge emergency is important», adding that salaries take about a third of the financial budget and the government address the high including salaries so that they are reasonable and logical ladder reduce cost and waste in this aspect and if there are areas or operational expenses of the exchange are not necessary to address them.
While spokesman for the Prime Minister’s Office that the government is working hard to cope with the unprecedented financial pressures experienced by the country in light of the war on terrorism requirements and provide the needs of the citizens and the salaries of employees, retirees and file displaced and file reconstruction of liberated areas and this many files stressful heavily on government.
Saad al-Hadithi and pointed out that «everyone knows that there is a decline is unprecedented in oil prices and the government is working hard to diversify income sources and create an active role for the private sector to support and state support in the creation of employment opportunities and transform Iraq from a functional state to state productivity and this strategic vision in the restructuring of the economy The work on the application and the announcement of several steps in this process, including the launch of six trillion dinars loans and stimulate the private sector and stimulate the Iraqi market and promote the production lines.
Update: On Reform Laws
THE ACCOUNTABILITY AND JUSTICE LAW IS SUPPOSED TO GO BEFORE PARLIAMENT IN THURSDAY’S 10/15 SESSION.
Why is this law so important for the RV?
First it is important because Iraq needs to prosecute ALL government officials (including Maliki) equally who have been involved in corruption or humanitarian violations against Iraqis and they needed the changes in the court system to do it. They also needed changes so Kurdistan and Baghdad governments would have the same court system. Compromises were needed and so it took longer than expected to make the needed change to the law after the second reading. This is now done. This is a requirement prior to any RV. I have told you this many times already. Now we watch and see how it plays out from here.
I firmly believe once these trials begin (and they will begin very soon) and they get the reaction of the citizens, it is going to have a snowball effect and the cries to prosecute Maliki (and some his high ranking goons) will be shouted even louder than ever. Then we and the Iraqi citizens will see the justice we have all been waiting for.
Incidentally we have heard also the Head of the Supreme Judicial Council, Medhat al-Mahmoud, has submitted his resignation. As you may recall we heard about a month ago he had submitted his resignation but the council did not accept it and so he continued in his post. So this time is different as we are hearing his resignation was accepted and he will be retiring. Will he also be prosecuted for his crimes?
Many have varying opinions on this subject matter. Mahmoud is now in his early 80’s. It would take a series of long drawn out hearings and trials since after all he was head of the Supreme Judicial Council. Would it even be worth it? Would it not be more beneficial for him to cop a plea and bargain and in exchange for vital information about the many legal decisions he made in Maliki’s favor. It is my opinion this is the way it will go down. Now we wait for his replacement to be announced.
Secondly this law is needed in order to create the needed stability in the court system. This stability was noted in many economic and investment summits with Iraq and international companies over the years. How else can investors get a fair way to settle legal disputes? Now they will finally get it. One more notch on our political stability to-do list thus closer to the currency reforms.
Update: Fighting ISIS
We are hearing that finally Iraq and the coalition forces are making great progress fighting ISIS. They do not tell us everything but one thing we know for sure is the goal is NOT to let ISIS DAASH reoccupy any ground already taken. As you know in the past once an area was cleared, ISIS simply worked around and out flanking the Iraqi and Qud forces reoccupying the area. This time this will not work. They are boxing them in and either they surrender or experience their final fate of death.
This is all good news and what we need to hear. Another notch on our to-do list thus closer to the needed security stability as needed for the currency reforms
Abadi announce the full launch of the second phase for the Liberation of Salah al-Din Announced the commander of the armed forces, Prime Minister Haider al-Abadi, Monday, for the second phase of full liberalization starting Salahuddin province, including the Baiji refinery.
BAGHDAD / obelisk announced commander of the armed forces, Prime Minister Haider al-Abadi, Monday, for the second phase of full liberalization starting Salahuddin province, including the Baiji refinery.
Information Office of Ebadi said in a press statement seen by ‘Obelisk’, that ‘the Prime Minister and Commander in Chief of the Armed Forces Haider al-Abadi announce the launch of the second phase of operations to Beck, O Messenger of God, full of Salahuddin province, including the Baiji refinery to edit’. The bureau added that ‘This came during a visit to the province of al-Abadi Salah al-Din and his meeting with military and security leaders’.
The Prime Minister General Commander of the Armed Forces said Haider al-Abadi, in (1 March 2015), the start of military operations to liberate the rest of Salahuddin province, from the control of the organization ‘Daash’.
DAASH IS BOXED IN BAIJI, RAMADI
14/2015 0:00 BAGHDAD – The morning began the countdown to defeat al Daash terrorist in Salahuddin and Anbar after the start of the second page of the process Beck, O Messenger of Allah parallel to the process of liberalization of gray. And check yesterday the completion of another military intelligence represents the combined forces to provide the information in the two provinces resulted in the targeting of communities of the enemy and kill the commander of operations Daash terrorist in the area of China during his withdrawal to the north and stationed near Baiji market, according to sources Sabah.
Focused process Beck, O Messenger of God in the second day to destroy enemy defenses and Khanadgah and tunnels used to transport weapons and terrorists. In this regard, the commander of special operations in the fight against terrorism device Brigade Maan al-Saadi said stressed the possibilities and capabilities to assign the good pieces, and victory is near in the coming days.
He explained that the process of liberalization of Salah al-Din will be parallel to the liberalization of gray Daash, The operations in Ramadi, a continuous and non-stop. The prime minister Haider al-Abadi announced of Salahuddin on Tuesday evening, the second phase of liberalization preservation process, and to link the start of Dr. Abadi these operations liberation of the entire land, saying: victory which will forehand push to start the liberalization of Mosul Daash gangs that began to collapse does not have the ability to grab the land.
Security sources revealed morning for the completion of the security cordon around the center of Ramadi fully on Wednesday, in preparation for the announcement of the zero hour for the liberation of the city of Conception terrorism. To that adopted the organization Daash terrorist yesterday the death of the second man in it called Abu Moataz al-Qurashi known as Abu Muslim Turkmen in an air strike near Mosul.
Within rally support for counter-terrorism efforts, said Chairman of the Board of Representatives, Dr. Salim al-Iraq need to support and assist the Arab States in the war against gangs Daash terrorist. He pledged that al-Jubouri, House of Representatives, will spare no effort to provide all forms of support necessary to achieve the desired goal in the liberation of the province of Nineveh.
NOURI: RUMORS DAASH A DESPERATE ATTEMPT TO COVER UP THEIR DEFEATS
Nouri: rumors Daash a desperate attempt to cover up their defeats Author: Publisher on:October 13, 2015
Baghdad / Center Brief for the Iraqi Media Network (IMN) spokesman denied the Badr Organization Karim al-Nuri, do Daash gangs poisoning the Tigris and Euphrates rivers, stressing that those rumors terrorist gangs resort to it to cover up their defeats and distracting people.
He said Al-Nouri’s (IMN) he was “not able to those gangs poison the Tigris and Euphrates rivers, and this is nothing more than a media campaign followed the terrorist gangs,” noting that “Daash use dirty methods and disseminating them to poison the Tigris and the Euphrates, the so-called Management of Savagery part.”
“The terrorist gangs Daash distracting people want to cover up the defeats and reprehensible.”
The committee and the defense of parliamentary security the middle of this year that Daash gangs used the last paper in terms of airing false rumors after the entry of the security forces to liberate Fallujah, calling for the defense and interior ministries to promote media effort to uncover the facts, including the spins of the fighting in Anbar and discredit those rumors.
Nouri said that “Daash do not hesitate to commit any crime but can not promote the genocide followed by the” past to say “Daash busy getting rid of air strikes carried out by the security forces and the forces of the popular crowd.”
He continued, saying, “These rumors .. but they can not carry out any Shi”.
He said he “was obtained and data gangs Daash movies after controlling large numbers of computers, mobile phones and compact discs have been submitted to the competent authorities to analyze the evidence contained some of which includes photos and names of terrorists and suicide bombers and confirmations to Anksaarham in Iraq.”
The chairman of the parliamentary security and defense of quitting stressed the importance of the collection and the multiple intelligence agencies in a single device and warning of weak intelligence may cast a shadow on the security situation.
And dissemination center news for the Iraqi Media Network (IMN) terrorists who were killed in the heroic operation carried out by the Iraqi air force bombed the al-Baghdadi convoy near Karabilah area of western Iraq, including an adviser Abu Bakr al-Baghdadi military names which Haj Abu Ammar and an official of the security committee in gangs Daash terrorist Abu Azzam and the Iraqi envoy Baghdadi tenderness of Abu Abdullah Abu Saudi Arabia and Lebanon, which Jazrawi Arab official in Syria, Iraq, Saudi and Abu Qatada al-Shaibani, a Euphrates official state flags. The cell media war, confirmed that the air strike targeted the convoy of a guerrilla leader Daash terrorist Ibrahim El-Badri al-Samarrai called Abu Bakr al-Baghdadi western Anbar province. Star of Gazan, the Open: Mohammed Nasser
RUSSIA DESTROYS 86 LOCATIONS TO DAASH IN SYRIA
Agency Information 10/13/15
Announced that the Russian Defense Ministry, Tuesday, that Russian warplanes carried out 88 combat sorties during which destroyed 86 locations to organize Daash within 24 hours in Syria.
A spokesman for the Russian Defense Ministry, Major General Igor Konashenkov in a press statement that ‘the Russian planes carried out during 24 hours 88 combat sorties and which has seen the destruction of 86 sites for the structure of the terrorists salute in the provinces of Raqqa, Hama, Idlib and Latakia and Aleppo’.
He added that ‘air strikes targeted a field command centers and stores of weapons and ammunition, military vehicles rallies and plants for the manufacture of explosive material and field camps and bases of the militants’
Update: Sovereign Bonds
Do you recall that Mnt Goat told you that the bond drive for Iraq would not and could not be successful without the currency reform. This was just yet another unsuccessful attempt to raise the needed funds to offset their 2015 deficit. Remember they also tried the Tariffs and what happened? Once again a half hearted attempt to raise funds and it too was unsuccessful with currency reform.
Why were these programs unsuccessful due to not having the currency reforms completed?
Sovereign Bonds – Any offering would have to pay out a very high % yield according to Iraqi credit rating. The credit rating was low due to the ongoing ISIS war, corruption and unstable investment background. Do these items all sound familiar as to why Mnt Goat keeps saying they must be fixed to make it more conducive for investors to come into Iraq or invest with Iraq? Do you get my point now?
Tariffs and Customs – just by hastily implementing a law, such as what Iraq did with the Tariffs and Customs Act, will not necessary guarantee its success, especially in an unstable country like Iraq.
What they needed to do is have the IQD back on the global exchanges so they can easily make the conversions needed in the exchange for billing on tariffs payments. You see – cargo handlers do not pay tariffs like we would pay a car toll going across a bridge. Instead the payments are accumulated and billed out via a WTO system. The WTO gets a % of the tariffs and the rest go to the country, as agreed to as belonging to the WTO. Iraq is not yet part of the WTO as they need a tradable international currency first and so the can not tie into the system as of yet and the saga goes on and on and on…. So to make a long story short the tariffs are very difficult to enforce and implement unless you have all the pieces needed in play to make it work to any extent of high revenues. Remember that when Iraq does get their currency back online and the tariffs can be fully implemented the revenues from this entity alone will match closely to the currency revenues from oil. So yet there is huge potential for wealth for Iraq but it is just potential until the PTB and Iraq can make it all work. We know that there are influences facing Iraq that do not want it to work and we can consistently see these forces apposing the progress.
IRAQ IS HEADING TO BORROW FROM INTERNATIONAL INSTITUTIONS AFTER FAILING TO SELL TREASURY BONDS
Iraq has dropped from the sale of foreign bonds worth 6 billion dollars due to the high interest rate imposed by the international financial institutions, which may be paid towards the path of external borrowing to fill the budgets of 2015 and 2016 deficit.
And allow the budget in 2015, voted on by the House of Representatives earlier this year, the Ministry of Finance to borrow or issue of internal and external treasury bonds to cover the deficit, which exceeded 20%, due to lower oil prices.
Fadel said the Prophet deputy finance minister, last Sunday, that Iraq “halted its plans to issue international bonds because the interest rate will be high.” The Baghdad aims to raise about two billion dollars from an initial denominated in dollars version, part of a series versions were will reach six billion dollars.
MP says Awad al-Awadi (range), “The government has been unsuccessful in the subject of the issuance of treasury bonds because there are fears of imposing significant benefits to Iraq.” He said al-Awadi, that “the government and the Finance Ministry Oiguenta that these bonds were dedicated operating budget and not for investment and thus there are no an urgent need to resort to it, “asserting that” the Federal Ministry of Finance felt that there was no risk of the insured employees’ salaries originally from oil sales.
“In the opinion of the Committee on parliamentary power by that” recourse to external borrowing must be dedicated to the investment and project task is not that the government bears the burden of overburden placed upon it in the light of the economic conditions experienced by Iraq.
“turn says Abdul Qader Mohammed Omar, a member of the Parliamentary Finance Committee, said that” our committee meeting with the Minister of Finance was focused on external borrowing issue and sale of Treasury bonds and the money that would have on Iraq.
“He said Omar, in told (range), “The Minister of Finance Parliamentary Committee told not convinced his ministry’s external borrowing, which calls for financial companies, banks and the banks of the benefits of up to 11.5% per annum,” saying it was “the profits outweigh the gains in circulation and the usual in economic markets.”
It is noteworthy member of the Finance Committee that “the specific borrowing within the budget year 2015 by 6 billion dollars in order to fill the current year’s budget deficit.” In the same context, draws Attorney Sirhan Ahmed, a member of the Parliamentary Finance Committee, that “the bonds Sticky sale in the budget law is not entitled to the Ministry of Finance terminated only all the way back to the House of Representatives for a vote.
“He added Ahmed (range) that” the Finance Committee in the House of Representatives will discuss the implications of this issue and its details at length in the meeting which will be held tomorrow (today) Tuesday, “noting that” these bonds raised to bridge the fiscal deficit interest up to 12%. “He said Kurdish lawmaker to” directed the Federal Ministry of Finance to borrow from domestic banks and the International Monetary Fund in order to repay year’s budget deficit in 2015 of $ 25 trillion Iraqi dinars.
“He noted that” the Council of Ministers returned the draft budget to the Ministry of Finance For some amendments and additions made, “expected” and the arrival of law to the House of Representatives in a matter of ten days. “turn attribute Mohammed Emeritus, Economic Adviser to the House of Representatives, the reasons for the freezing of selling foreign bonds to” high interest, which will cost the Iraqi treasury large sums rate. “He added Emeritus , told the (range).
“The first batch of treasury bonds was worth two billion dollars,” calling on the Ministry of Finance to “look for other sources to fill the coming budget deficit and is expected to reach 29 trillion dinars.”indicates an economic advisor to the Board of episodes to ” the existence of negotiations conducted by the Ministry of Finance with some international banks, financial companies and the International Monetary Fund and the World Bank in order to borrow to meet next year’s budget deficit, “noting that” the Ministry of Finance has tours with these banks and companies to get the money to reduce the deficit in the budget of 2016 “. On the back Council of Ministers the draft 2016 budget to the Ministry of Finance, Emeritus says that this is due to “the government’s efforts to reduce public spending and pressure ministries allocations as well as calculate the price of the barrel in order to reduce the size of the budget deficit next year.” In the opinion Parliamentary Counsel that “the adoption of the price of a barrel of oil dollars to 45 ordered exaggerated and need to reconsider in line with the size of the economic challenges facing the world price
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All.
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