Iraq prime minister promises corruption crackdown, says laws will protect nervous foreign investors
More than six months after Iraq’s leadership proclaimed the defeat of ISIS on Iraqi territory, the country is on a path to rebuild and has seen promising signs of international investment for its reconstruction.
“We never anticipated this number of companies, investors or would-be investors, governments, to be so enthusiastic about taking part,” Al-Abadi said, in reference to an international conference held last week in Kuwait for the rebuilding of Iraq. “This is a sign that there is a trust with Iraq. There is a trust that Iraq is moving to a different direction than before, which is very encouraging for us, and very encouraging for them.”
The Kuwaiti-sponsored conference drew representatives from more than 70 countries, 51 international aid organizations, and several hundred businesses. The enthusiastic gathering of international donors, which culminated in $30 billion worth of pledged investment, represented widespread support for a stabilized Iraq. International leaders have warned that insufficient resources for Iraqi reconstruction could undo all the progress made against ISIS and enable social and economic problems to fuel further sectarian strife.
Iraqi officials have said that $88.2 billion would be needed to rebuild the war-battered country, with housing among the most urgent priorities. They noted that the $30 billion pledged in Kuwait fell significantly short of that figure, though Al-Abadi described it as very positive regardless.
Still, while the security situation may have improved, many investors are wary of deep-seated corruption and a dense web of red tape and bureaucracy. Transparency International ranks Iraq as the 10th most corrupt country in the eyes of investors.
Asked how the government would reassure investors that their funds would be allocated properly, the prime minister stressed his focus on tackling corruption.
“We are laying down all the legal framework … I think the worry is corruption, number one, which is hiding behind red tape and bureaucracy. We have established a higher committee which is headed by the prime minister and it has a follow up team to make sure to remove blocks as they are there because of the bureaucracy,” Al-Abadi said.
“I think this will be a huge bonus for companies; sometimes they are pressed to pay bribes or something like that. We want to keep away from this, we want every dollar which goes into investment or donation to serve the people, not to go to the pockets of corrupt people.”
Al-Abadi appeared confident, despite the significant challenges ahead.
“I think now that the process of engaging investors in Iraq, I am sure in the next few months will be the foundation of this. We’ve already appointed a committee. Next month is going to be a meeting with major investors to follow up … And I hope that after the election they’ll immediately start.”
Article Credit: CNBC.com (Special Thanks to Vernell Washington)
BGG ~ In all fairness, I should note a word of caution, though this is reasonably “mainstream”, it feels like an “overly rosy” report. Best case, this is not as I have reported these events. Sounds a lot like “pre-election” rhetoric to me.
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The date of voting on the budget of 2018
Baghdad News – A member of the Finance Committee of Parliament Mahasen Hamdoun, said Monday that next Tuesday is the date of voting on the budget in 2018.
Hamadoun said in a press statement that ‘the Finance Committee continues its meetings to discuss the budget and will not clear things, only on the day of voting on it’.
“The vote on the budget will be next Tuesday,” she said, stressing that ‘deductions of salaries of employees stopped in the budget’.
“The Finance Committee is meeting today to complete the discussions and will not show the picture only in the voting session on the budget,” adding that ‘the proportion of the region will not change and the members of the Kurdistan Alliance did not attend to discuss the budget so far, so the situation remains as it is.
Read More: http://www.dinarupdates.com/showthread.php?56313-Disclosure-of-the-date-of-voting-on-the-budget-of-2018
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Central Bank of Iraq Auctions $190,127,818 on 19 February 2018
Baghdad (IraqiNews.com) The Central Bank of Iraq (CBI) currency auction on February 19 registered $190,127,818 in sales, a -2.46% volume decline from the US $194,932,241 sold by Iraqi Dinar, credit and transfer at the previous auction held on February 18.
The latest auction was attended by 45 banks and 9 remittance companies. The same institutions attended the auction held on February 19 compared to the previous auction.
Data for the February 19 auction was made public by CBI Announcement Number 3638.
Dollar sales in the in the period January 1, 2018 to February 14, 2018 saw an increase of -1% compared to the sales of US $4.75 billion in the same period in 2017. The total amount of US currency sold by CBI in the calendar year 2017 was US $15.7 billion.
An analysis of the monthly dollar sales by CBI since January 2016 reveals highly fluctuating volumes. During the period from January 2016 to February 2018, sales of US dollars averaged US $1.81 billion per month. Peak volumes were reached in May this year when sales touched US $2.3 billion.
BGG ~ I will continue to highlight the regular auctions. After recently asking around about the reasons for the “tightening” of the supply of Dinar in the U.S… one of the main reasons I got was the fewer and fewer auctions. Wait – what?!? They are still having fairly robust auctions.
So, obviously, that’s not true… so what is it?
Another possibility is this MASSIVE financial embargo on Kurdistan, provided this was where currency was coming from.
I have also heard of a couple of major players talking about having money in – or being able to get money out of Kurdistan… all baloney. Kurdistan has been under very tight controls since snubbing the world diplomats with this sham vote pushed by Barzani.
Why was it a sham vote? Simple fact: you can’t just take what isn’t yours to take just because you vote on it.
Back to my previous rebuttal – anyone who actually had money in Kurdistan would have either gotten it out or is REALLY “up a creek”… likely just more B.S.
So…
1) Fewer auctions?
2) Tightening borders (fewer exports)?
3) More demand? I sincerely doubt it.
4) IMHO and most likely, the supply here in the U.S. from disgruntled sellers, which is likely where the bulk of the U.S. supply really comes from, and current interested buyers has finally reached a point of parity where the “supply – demand” scales are more evenly balanced.
Hence, the price goes up.
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Corruption fears prevent the World Bank from handing over the money of the Kuwait conference to the Iraqi government
A member of the Committee on Economy and Investment Representative Amer al-Fayez, Sunday, that the news that talked about the condition of the World Bank on the survival of the funds of the donors conference under his supervision is expected, indicating that Iraq is globally diagnosed high corruption index and therefore there is fear of handing over money.
Al-Fayez said in a press statement that “the subject of the World Bank’s requirement not to hand over the funds of the donor conference to the Iraqi government and keeping it under his supervision in the disbursement of investment companies that aspire to the reconstruction of Iraq is expected,” pointing out that “at the beginning of the donor conference in Kuwait, To deposit money in the Kuwaiti bank and disbursed in the form of payments to investment companies. ”
Adding that “this is expected because Iraq is diagnosed by the countries of the world high corruption index in this and led to loss of confidence in Iraqi institutions.”
The Economic Committee in the Iraqi parliament, earlier, that the loans granted to Iraq at the International Conference on Iraq Reconstruction, amounting to about $ 27 billion, will weigh the “burden” of the budget.
The Kuwait International Conference for the Reconstruction of Iraq began in Kuwait on Monday, 12 February 2018, and lasted until the 14th.
Article Credit: Basnews.com
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Government sources: 6000 cases of corrupt officials, of which about 3,000 have not been completed
A total of 6,000 cases of corrupt officials have been brought in by former and current governments, of which about 3,000 have not been completed, government sources said on Sunday.
The sources revealed in a statement that the government and parliamentary oversight bodies are subject to political pressure, which hinders its work and its ability to hold the corrupt accountable.
In this context, the spokesman of the Supreme Judicial Council, Abdul Sattar Birqdar, acknowledged that the recent amnesty law allowed Fasdeen to escape punishment.
“There are corrupt people who have been convicted of judicial decisions and sentenced them in accordance with the law, but they included the general amnesty law legislated by the House of Representatives,” Berkdar said.
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BGG (Dinar Guru) – Article: “COMMITTEE OF ACCOUNTABILITY: ANNOUNCE THE NAMES OF 5,000 PEOPLE INCLUDED IN THE SEIZURE OF FUNDS THIS WEEK” Funny how that works…about one day after they realize the world isn’t going to “give them” anymore money, they go back and think about getting it back from the crooked politicians who’ve been stealing from the GOI and the people of Iraq. According to recent estimates, they could collect as much as 500 BILLION (USD) back to the state treasury by enacting and enforcing simple legislation they’ve had in the works for some time now. P.S. as reported in major OP ED’s in Baghdad recently, Maliki and his henchmen had better wind up on this list…It is critical to Iraq’s long term success to get a handle on the endemic corruption.
Read more: http://www.dinarupdates.com/observer/
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G-Lin (Dinar Guru) – “Economist shows the most important “problem” facing investment in Iraq” The news currently is scarce and most of it is propaganda…Being an election year in Iraq, it is hard to tell the honesty in most arts. It is time for Iraq to act on their economy however. And floating their dinar may be a life saver. I think it would give the investors a little bit of confidence that seems to be missing. They really need to do something at this stage. We shall see.
Read more: http://www.dinarupdates.com/observer/
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Washington agrees to send US troops to “protect” the elections in Iraq
A spokesman for the so-called “Nineveh Arab tribes” Muzahim al-Hewitt, the request for “official” to the US government includes sending US troops to oversee the upcoming parliamentary elections, stressing that the American side agreed to their request.
Al-Hewitt said active Sunni tribes and parties had submitted a unified request to the US government recently to send US troops to oversee elections in Sunni areas to replace security forces and popular mobilization. Adding that the US side approved the proposal and will send troops in the coming days to the Sunni provinces and disputed areas, without revealing the numbers of these forces.
The Lebanese newspaper Al-Akhbar revealed on Tuesday the intention of the Union of Forces to ask the federal government to deploy US troops in their areas during the parliamentary elections scheduled for next May.
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Chattels (Dinar Guru) – Article quote: “Foreign exchange markets in Baghdad, on Sunday morning, a significant decline in the exchange rate of the dollar against the Iraqi dinar. The market price in the Kifah Stock Exchange in Baghdad was 1225.5 dinars per dollar, ie 122 thousand and 550 dinars per hundred dollars.” [… if the exchange declines…will that reduce the spread?] Yes, a 2% spread or variance requires that the Dinar market rate be about 1202.
Read more: http://www.dinarupdates.com/observer/
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mike (Dinar Guru) – Article: “Invest Iraq conference” concludes in Kuwait” For sure, this conference did not live up to the expectations that folks were screaming about before the event. This was planned for months prior to the February 12th, Abadi was counting on this to aid his bid for a second term as PM, which is why these tepid articles about success are beginning to come out. He has to spin this in a way that serves his purpose. Pledges and contracts in the ME are not the same as cash in hand. Iraq won’t manage any of the funds the Sunni countries put towards reconstruction, these will all be managed by the WB and IMF. [post 1 of 2]
Read more: http://www.dinarupdates.com/observer/
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A German company gives the government a “road map” to invest in Iraq
The head of the company and its executive director Joy Keizer, Prime Minister Haider al-Abbadi handed over a road map in which he outlined the investments and development projects that the company will implement in the country in the short, medium and long term.
“We are honored to be a close partner of Iraq and will work in coordination with the Federal Ministry of Development and Economic Cooperation of Germany to support Iraq’s reconstruction and development efforts in areas such as education, training and combating corruption,” Kaiser said.
The company’s plan also aims to ensure uninterruptible power supplies up to 16 gigawatts by 2025 to feed all and around Iraqi cities and will be implemented in short and long-term phases.
Siemens is also seeking better use of natural resources in Iraq, such as oil and gas, by adapting its own technology to divert the lost gas associated with oil to a valuable product that feeds national power plants and provides financial returns to the state treasury.
The company expects to provide about $ 5.2 billion in gas use to meet domestic demand over the next four years, with the cessation of incineration of associated gas by 2021.
Article Credit: en.economiciraq.com (Special Thank to Faron Davis)
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Some interesting headlines…
Donors’ conference: hopes for money
Nujaifi: We did not ask the United States to postpone the elections and the causes of divisions are many
Businessmen seek guarantees against bureaucracy to invest in Iraq
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Iraq’s rebuilding cannot start without reconciliation
The president of the United States Institute of Peace, Nancy Lindborg, who has just visited Iraq, says divisions in the country remain an underlining problem.
And although Iraq’s Prime Minister, Haider Al Abadi, announced a military victory against ISIL in December, there must be a focus on reconciliation to bridge inter-sectarian differences, she stressed.
Iraqis are “alert that although the military campaign is over, Daesh and its ideology is still there,” Mrs Lindborg told The National in an interview in Abu Dhabi.
“A person told us that Daesh didn’t come from a different planet, it came from the grievances that existed in Iraq.”
With parliamentary elections scheduled for May, Iraq’s politics remain divided along sectarian lines, with Shiite politicians in the main positions of power, with many Sunnis – who have boycotted elections in the past – saying they remain sidelined. The future of the semi-autonomous northern region of Kurdistan also remains unresolved after an unsanctioned referendum on independence last autumn.
For Mrs Lindborg, reconciliation is people’s necessary “mechanism for discussing what is the divide in their community without resorting to violence.”
The government must ensure that it creates an “inclusive and accountable way of governing the country so it’s a government for everyone,” she said. Iraq’s weakened social fabric along with widespread corruption are a stumbling block to efforts to recover from its three-year conflict with the insurgents.
Read More: http://www.dinarupdates.com/showthread.php?56283-Iraq-s-rebuilding-cannot-start-without-reconciliation
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Float the Iraqi dinar and stop the auction currency is the only solution of the Iraqi economy.
Under Conference : Kuwait , the results of which are discouraging to solve the problem economic Iraqi especially after the devastation resulting from the grinding war on terrorism must think of radical solutions and take advantage of other peoples experiences
I want to point to the experience of two states at the time Alhadrohee experience Masrafiqirh powered and experience its Vnzula oil – rich experience sister bank to float the Egyptian pound in 2016, which produced Mayati after only one year of floatation first year float ..
Egypt stronger “numbers” after the liberation of the exchange rate .. cash reserve jumps from 19 to 36.5 billion dollars .. and $ 56 billion to save imports .. and $ 13.7 billion Surplus payments .. and 17.3% higher transfers abroad…
Float the currency , ” an economic term means that the exchange rate against the dollar or any foreign currency away from any interference from the government or the central bank in determining its price, and the associated value of supply and demand
Yes to float the Egyptian currency has led to decrease the price of the pound against the dollar from about 9 to 17 but still the state provides the necessary materials and medicines for citizens did not increase the rate of poverty with the knowledge that Egypt imports most of its need – oil from abroad , which is a very large Obeie
Second example is the state of Venezuela , the state is very rich in oil and is now on the verge of bankruptcy where the conduct of its economy in a similar manner to what is in Iraq at the time of The present and the currency “Venezuela” is now at 3 prices for the exchange, according to the price of central bank exchange rate, the price on the black market, the price used in exports with a large corruption in the work of the Central Bank of
Iraq is on its way with no doubt the Venezuelan example , that measures and radical reforms are similar not taken what happened in Egypt with a big difference to Msalkhh Iraq and hwan Iraq earned from oil exports in the month of December 2017 will alone $ 4-6 billion means about 76 billion Dola year benefits desired from the floating currency with some Alajrouat that resemble Maatkhzth Egypt with the presence of transparency
will increase the central bank reserves amounting up to more than 40 – 50 carefully Dollars in one year
(Masrasttaat increase the central bank ‘s reserves by more than 16 billion in one year) and can this amount available start for major energy projects and water desalination projects , agricultural and construction of hospitals and factories and by international companies sober and will pay for these projects from oil imports without waiting to on foreign investment and this process will provide hundreds of thousands and even millions of jobs for unemployed Iraqis
( the foreign investor foreign workers will come more often , as happened with the oil companies) and foreign investor even if it came at the present time will benefit from the auction sale of the existing currency is currently the result The damage to the Iraqi economy as is the case with mobile phone companies, but if you stop the auction currency impact will be in the interest of Iraq , even with foreign investor
What damage the possible risks in the case of the floating currency of course there is a risk of low currency Iraqi, but for employees who exceed their income from $ 1000 will be the damage is limited and only at the beginning and only the value of purchasing materials perfectionism but will be offset by electricity, hospitals, medical equipment, medicines, roads, water improvement and card Altamonah and there is a potential for a greater number of family members are more job opportunities, but when you start the economy and Planter plants Iraq U – turn will be a drop in the currency news out of date
this process can reduce the rampant corruption and companies unreality It is possible that the Iraqi economy turns into one of the largest developing economies , and
in any case can go back to sell the currency once again after a year or two years if it was not written for this process success and I do not think the piece and the people of Egypt Asalo
BGG ~ Some interesting stuff out there right now…
As I talked about, with the send-off Abadi got at Davos, I had figured this Kuwait Conference wouldn’t go quite the way everyone was thinking. I said as much.
There wasn’t much in the way of “hand-outs” directly to the government of Iraq. There were some commitments and some direct loans (if they want them).
However, loans will weigh down their future budgets (is their concern)… I get the impression they were mainly after free money.
Oh well…
On the other hand, I am still encouraged. In fact, this recent article:
…”Float the Iraqi dinar and stop the auction currency is the only solution of the Iraqi economy”…
…shows us a couple of things:
1) While there seems to be some resistance – from somewhere in the GOI to a move with the currency, where that is or why it is, I am unsure…
2) …there also appears those on the other side of the fence, I am assuming those opposed to corruption and the corrupt processes… are putting pressure on the first group to do something, other than just fish around for free money. Such is noted in the above article.
On a side note, and relating to “fishing around” for free money… there did appear to be something of a start to rounding up corrupt political figures in an effort to reclaim “ill-gotten gains”. As an additional note: Reported in Baghdad recently, it is implied such a push must include Maliki and his henchmen if such a move is to be recognized by the world (and Iraqis) as a genuine effort.
While a float may or may not be what they (or you and I) had envisioned, they just may well do something like this before they do nothing at all. Like I have said all along – I don’t really care how it starts… just that it does and they GET TO IT!!
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Click this link to join the DU “private” FaceBook Group…
https://www.facebook.com/groups/571383766355188/
(go here and ask to join… then add some Dinar Friends!!)
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Post RV Checklist (it’s getting to be that time!! Listen up!!)
Dos and Don’ts of Windfall Wealth:
Treat it like a PowerBall win
– Tell no one, not even family. If you must talk, do so with one who is already in the know.
– Don’t run out & buy new “stuff”. People notice.
– Get an unpublished number and give it out very sparingly.
– Get a tax accountant you can trust to make sure the IRS is satisfied (Certified Opinion is something to look into) and pursue asset protection…
Read Complete List: http://www.dinarupdates.com/showthread.php?18519-The-Post-RV-Checklist-and-Flashback-documents&p=128477#post128477
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