An informed source told Rudaw that the Iraqi finance ministry told the Kurdish delegation that it would not send more than the 36 billion dinars already dispatched for July. The ministry also insisted that the salaries of KRG civil servants who reside in disputed areas must be managed by Baghdad.
The two finance ministries discussed a report from the Iraqi Financial Supervision Bureau that indicated that from February to June Iraq has sent an extra 600 billion dinars to the KRG, the source added. The bureau argued that this amount, combined with the KRG’s local income, should suffice for July’s salaries.
The Kurdish delegation, which includes the KRG’s head of budgeting and accounting, is scheduled to meet with the bureau on Thursday.
Baghdad has paid the salaries of Kurdistan Region’s civil servants for the first six months of this year, albeit with delays. The Iraqi government has pointed to repeated problems such as duplicate names in the payroll list, as well as issues with names on the Kirkuk payroll in July.
Nearly 550 billion dinars have been deposited into the KRG finance ministry’s account for August’s salaries, Rebaz Hamlan, assistant to Kurdistan Region Prime Minister Masrour Barzani and former KRG finance minister, confirmed in a statement on Tuesday.
The funds for August were based on the payroll list submitted for July, according to Hamlan, who argued that reservations about the details are, therefore, "entirely politically motivated."
Federal government optimism
On Wednesday, the Iraqi parliament’s deputy speaker told reporters in Kirkuk that he has spoken with Prime Minister Mohammed Shia' al-Sudani and is hopeful the premier can resolve the salary delays despite “excuses” from the federal finance ministry.
“[The prime minister] said that today he will give an order to send the salaries for July and next week the salaries for August,” said second deputy speaker Shakhawan Abdullah, indicating that more funds may be disbursed for July.
Abdullah added that the PM is willing to meet with Kurdish officials to ensure the issue is resolved and not politically exploited.
"We stood firmly against the excuses of the [Iraqi] finance ministry,” Abdullah said, blaming the ministry for delaying the disbursement of the salaries and a misunderstanding that some employees in Kirkuk receive salaries from both governments.
Some civil servants and teachers in Kirkuk are employees of the KRG, which has paid their salaries, while Baghdad is responsible for others.
“[A]fter we explained things to them, the Iraqi finance minister said that today he will send a directive to the finance ministry…,” Abdullah said.
Another concern from the finance ministry was that some employees were receiving social welfare payments from the Iraqi government while also drawing salaries from the KRG. In the Kurdistan Region, it is sometimes permitted for individuals like the family members of martyrs to receive both a salary and welfare, but this is not permitted in Iraq.
Abdullah suggested that those affected should be added to the federal government’s payroll and instead forego their social welfare benefits.
There were also concerns about the biometric fingerprints of some civil servants not being registered. Abdullah said that 500,000 fingerprints have been registered and the process is ongoing. He noted this does not imply the existence of fictitious employees.
The KRG has failed to pay the salaries of its civil servants on-time and in-full for a decade due to a financial crisis that worsened when its oil exports were halted a year ago following a court ruling on a dispute between Iraq and Turkey over the Kurdistan Region’s independent oil sales.
Erbil currently is dependent on local income sources and its controversial federal budget share.
Soran Hussein and Halkawt Aziz contributed to this report.
