Central Bank of Iraq criticizes the decision to link independent bodies under the chairmanship of Minister

Central Bank of Iraq criticizes the decision to link independent bodies under the chairmanship of Minister
24 January, 2011


Criticized the Iraqi Central Bank's decision the Federal Court decision to link independent bodies under the chairmanship of cabinet and not under the chairmanship of the parliament, and that this constitutes a threat to the Iraqi funds . .

Bank said in a statement received Fayhaa a copy of it that developed under the auspices of the government according to the Federal Court decision makes the Bank's assets abroad are subject to seizure by creditors, he said, adding that the independence provided by the law was and is still the only thing that guarantees are not exposed Iraq's financial resources abroad for procedures for the confiscation of international creditors, "according to the statement . .

The Federal Supreme Court issued a decision in January 18 of this attachment provides independent bodies referred to in the Iraqi constitution, including the Central Bank under the chairmanship of Prime Minister directly, not under the chairmanship of the House of Representatives.

http://www.alfayhaa.tv/news/iraq/47626.html

25 Jan 2011

Iraq court ruling of independent bodies sparks row


BAGHDAD, Jan 25, 2011 (AFP) - An Iraqi court ruling linking the central bank and election commission to the cabinet has sparked widespread criticism that it threatens Iraq's savings and undermines the credibility of the two bodies.
Several of the agencies affected have already criticised the supreme court ruling, noting it harms their non-partisan reputation, while opponents of the decision have said it was a move by the government of Prime Minister Nuri al-Maliki to consolidate power.
Among the most prominent critics of the move was central bank governor Sinan al-Shebibi, who warned on Tuesday that the ruling threatened Baghdad's assets overseas.
"Iraq will lose its ability to protect its savings overseas due to this decision," Shebibi said in a meeting with parliament speaker Osama al-Nujaifi, a statement by the legislator's office said.
"The independence of the bank was, and is, still the only guarantee in order to protect the financial resources of the bank, and stop confiscation procedures by international creditors."


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With the central bank tied to the cabinet and its independence in doubt, according to Shebibi, its accounts would be seen as an extension of the Iraqi government, and would be open to claims by Iraq's creditors.
Iraq faces a host of potential claims, dating from the 1991 Gulf War, from several countries and many businesses and individuals, after UN Security Council protection of its funds expires in June.
The January 18 ruling put several key bodies under the supervision of the cabinet, arguing that their work was executive in nature, so they should be answerable to the cabinet and not Iraq's parliament.
Among the agencies affected are the central bank, the election commission, the anti-corruption watchdog and the human rights commission.
The ruling followed a request for clarity on the relevant constitutional clause by Maliki's office on December 2, after a power-sharing agreement had been hammered out by Iraq's divided political factions ending nine months of stalemate following elections, but before the premier had named a cabinet.
Election commission spokesman Qassim al-Abboudi, who is also a judge, said the ruling lacked "any legal basis".
"Connecting the election commission to the government harms its reputation," added Abboudi, a member of the commission's board.
Political opposition to the court ruling has also been swift, including from MPs whose parties are members of Maliki's fledgling national unity government which was formed little more than a month ago.
"We believe that this ruling is wrong, and a politicised decision that will not serve the political process," said Jamal al-Batikh, a senior member of the Sunni-backed Iraqiya bloc which holds 91 seats in the 325-member legislature.
Batikh said Iraqiya would raise the issue in parliament in the coming days.
Mahmud Othman, an MP with the Kurdistan Alliance which holds 49 legislative seats, added: "We do not agree that independent commissions should be under the control of the executive authority."
The supreme court, however, has insisted that the ruling is final and cannot be appealed, with judicial spokesman Abdelsattar Birakdar claiming that a practice of linking independent bodies with "executive characteristics" to the cabinet was commonplace around the world.
But its ruling has been questioned by Iraqi legal experts and international analysts.
"The independence of these organisations is written into the constitution," said Dhia Saadi, the former head of Iraq's Bar Association. "The decision of the supreme court will impose more restrictions on their actions."
"It is an attempt on the part of the cabinet to absorb all of these bodies with the goal of imposing their will. This step is in violation of the constitution," he said.

Ali al-Saffar, Iraq analyst with the Economist Intelligence Unit in London, described the ruling as "worrying."

He said it would perpetuate a view that the election commission, which "has been seen as being politicised," was "just a branch of the government."

It could also "make it easier for political decisions to be carried out by the central bank and that would be quite a tragedy because of the success it has had over the past few years," he said by telephone.

"For people that don't read the fine print, and that's 99 percent of people in the country, it's going to be interpreted as it looks, and it looks like the executive branch is concentrating power in its own hands."



http://www.zawya.com/Story.cfm/sidANA20110125T120334ZOIK30/Iraq%20court%20ruling%20of%20independent%20bodies%20sparks%20row

25 Jan 2011

Iraq central bank chief fears assets at risk



BAGHDAD, Jan 25, 2011 (AFP) - Iraq's central bank governor said on Tuesday a court ruling putting the bank under cabinet supervision could threaten its assets abroad and open the door for international creditors to lay claim to its deposits.

Sinan al-Shebibi's warning was the latest in a series of criticisms of a January 18 supreme court decision that ties several key independent bodies to the government.
"Iraq will lose its ability to protect its savings overseas due to this decision," Shebibi said in a meeting with parliament speaker Osama al-Nujaifi, a statement from Nujaifi's office said.
"The independence of the bank was, and is, still the only guarantee in order to protect the financial resources of the bank and stop confiscation procedures by international creditors."

With the central bank tied to the cabinet and its independence in doubt, according to Shebibi, its accounts would be seen as an extension of the government and would be open to claims by Iraq's creditors.

Baghdad owes neighbouring Kuwait around $22 billion in war reparations resulting from Saddam Hussein's 1990 invasion of the emirate, paid out of Iraq's oil revenues.



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That is in addition to an estimated $8 billion in bilateral debt and around $1 billion owed to Kuwait as a result of a court judgment over a dispute between the two countries' state airlines.

The January 18 ruling tied several key bodies to the cabinet, arguing that their work was executive in nature, so they should be answerable to the cabinet and not parliament.

Also affected are the election commission, the anti-corruption watchdog and the human rights commission.

On December 2, Prime Minister Nuri al-Maliki asked the court for clarification on whether these institutions fall under cabinet or parliamentary supervision.



http://www.zawya.com/Story.cfm/sidANA20110125T113154ZOIG07/Iraq%20Central%20Bank%20Chief%20Fears%20Assets%20At%20Risk