Peregraf
The Iraqi Ministry of Finance has attributed the delay in disbursing salaries in the Kurdistan Region to a defect in the audit balances of the Kurdistan Regional Government’s (KRG) Ministry of Finance. This issue, the ministry stated, caused the Kurdistan region to deviate from the mechanism approved by the federal Ministry of Finance for funding.
In a statement issued today, the Iraqi finance ministry denied allegations circulating on social media claiming it intentionally failed to disburse the salaries of Kurdistan Region employees for four months. The ministry emphasized that these claims are entirely baseless.
The KRG has already commenced the distribution of October salaries, with all employees expected to receive their October payments by the middle of next week. Additionally, it is anticipated that November salaries will follow immediately after the October disbursements. However, the fate of the December salary remains uncertain.
The Iraqi Ministry of Finance reiterated its commitment to fulfilling its financial obligations in accordance with applicable laws and procedures without any negligence. It clarified that salaries for October and November have already been funded, with the necessary amounts transferred to the relevant authorities. These actions align with allocations designated for the Kurdistan region, comparable to those for federal government employees, and in accordance with a Federal Court decision mandating the timely disbursement of salaries.
The Finance Ministry of Iraq also highlighted its ongoing communication with the Kurdistan Region through periodic meetings with the KRG’s Ministry of Finance and Economy. It reaffirmed its commitment to disbursing salaries on time and in accordance with established legal frameworks.
The statement concluded with a call to the media to exercise caution when reporting information and to verify its accuracy before publishing any news that could mislead public opinion or distort facts.
The relationship between the Iraqi central government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil has been historically fraught with tension, particularly regarding financial and budgetary matters. The Kurdistan Region, an autonomous region in northern Iraq, has sought greater financial independence and control over its resources, including oil revenues, leading to periodic disputes with Baghdad over budget allocations and financial management.
One of the core issues in the financial disputes has been the allocation of the federal budget to the Kurdistan Region. Disagreements over the accuracy of the KRG's financial reporting, transparency, and compliance with federal regulations have often led to delays and reductions in funding from Baghdad.
The delays in salary payments have severely impacted public sector employees in the Kurdistan Region. More than 1.25 million public sector workers and pensioners depend on these salaries for their livelihoods. The financial strain resulting from these delays has led to widespread public unrest, protests, and strikes, particularly in regions like Sulaymaniyah, Halabja, Garmian, and Raparin. Teachers and other workers have organized boycotts in response to the prolonged delays, further highlighting the gravity of the situation.
The Federal Supreme Court of Iraq has previously ruled on the obligations of the central government to release funds for the KRG salaries under specific conditions. Despite these legal mandates, the execution of these rulings has faced hurdles, contributing to ongoing financial uncertainty for the KRG's public sector workforce.
The ongoing salary payment delays highlight the complex interplay between financial management, legal obligations, and political dynamics in Iraq. The resolution of these issues is crucial not only for the economic stability of the Kurdistan Region but also for the broader relationship between Baghdad and Erbil. As negotiations continue, the need for transparency, cooperation, and adherence to legal frameworks remains paramount to achieve a sustainable solution.