ERBIL, Kurdistan Region – The Kurdistan Regional Government (KRG) said it is ready to subject its employee list to an audit from an Iraqi committee after Iraqi Prime Minister Haider al-Abadi raised objections to the large number of people on the government’s payroll.
Abadi said on Tuesday that his government is committed to paying KRG employee salaries after Erbil hands over its oil revenues. He doubted, however, the 1.2 million-person payroll and said an audit would have to be done.
The KRG, in a statement on Wednesday, said it can provide the Iraqi government with the list of state employees it has compiled through the biometric system.
According to the KRG, the salaries will cost Baghdad $772 million a month, much higher than the central government’s proposed $286 million.
The two governments are also disputing funding for the Peshmerga proposed in Baghdad’s 2018 draft budget bill.
The KRG stated that the the bill does not allocate any amount for the Kurdish soldiers, but instead refers to them “vaguely” as part of Iraqi infantry units. The regional government also said it expected Baghdad to value the contribution of the Peshmerga in the war against ISIS.
Baghdad has demanded the KRG hand over oil revenues and has raised concerns about how Kurdistan is exporting its oil.
Responding to these concerns, the KRG said that its oil and gas sector is currently being audited by two international firms, Deloitte and Ernst & Young, and will hand over their data findings to the people and the Iraqi government.
Before handing over its oil revenues to the central government, the KRG said any agreements over this matter must be made in light of the Iraqi constitution and must guarantee payments to international oil companies.
It said that Baghdad’s draft budget commits the KRG to export 250,000 bpd, but does not provide for payments to the oil companies operating in the Kurdistan Region.
The KRG dismissed Abadi’s claim that they exported 550,000 bpd in October. The Ministry of Natural Resources stated earlier on Wednesday that exports has been about half that amount.
Baghdad and Erbil are locked in a dispute, exchanging statements through the media, over the budget. Abadi said on Tuesday that the KRG’s demand to receive their previously agreed 17 percent of the budget was “unjust.” The KRG has been allocated 12.6 percent in the draft bill.
Both parties agree that the percentage of budget share should be based on the population, but disputes arise over what figures to use.
The KRG points out that the two governments had agreed that 17 percent share would stand until a census could be held. That number was set during the foundation of the new Iraq, post-Saddam Hussein.
Abadi has called for them to use estimates made available by their governments and the United Nations.
The KRG has accused Baghdad of acting unconstitutionally by reducing the budget share as no census has been held. The regional government also points out that it is hosting some 1.5 million displaced Iraqis and Syrian refugees.
