KRG finance ministry statement on latest salary delays

ERBIL — The Kurdistan Regional Government’s Ministry of Finance has denied claims that recent salary payment delays are due to regional government actions, dismissing rumors of increased employee numbers or salary increments as “false.” The ministry clarified that the delays are linked to long-standing administrative and financial issues between the Kurdistan Region and the federal government in Baghdad, not local mismanagement.

Despite submitting payroll lists to Iraq’s federal Ministry of Finance, only 1.426 billion dinars—just 0.14% of the required amount—has been authorized for disbursement. The ministry urged cooperation from the federal government to resolve these issues, emphasizing that efforts to address them have been ongoing since last year and will continue until a resolution is reached.

Full statement:

Clarification from the Ministry of Finance and Economy – Accounting Department

For several days, there have been false and unfounded claims against the Ministry of Finance of the Kurdistan Region by some parliamentarians and media outlets, accusing the Kurdistan Regional Government of being responsible for the non-payment of salaries to employees. They are spreading misinformation, suggesting that the reasons for the salary delays are due to an increase in salary increments and the number of employees. Below are the points we want to clarify to the public:

1. Regarding the duplication of names on the payroll lists between the Kurdistan Region and Baghdad, after investigation, it was found that these names do not present any legal issue, as most of them are legal employees with completed dossiers. However, the federal government should have provided assistance in auditing these lists rather than withholding salaries. If any illegal duplication exists, appropriate actions should have been taken. In cases where employees are legally entitled to their salaries, the collaboration between the federal and regional finance ministries should have ensured proper investigation and appropriate measures.

2. Concerning the issue of the absence of biometric registration in the Kurdistan Region, we had previously informed the federal finance ministry that the biometric process for salary recipients and retirees had not been completed due to various reasons, including the presence of heirs of retirees and some recipients living abroad. This does not mean that those who are not biometrically registered are not entitled to their salaries. Instead of relying solely on the biometric system, the federal finance ministry could have trusted the national ID card system, which every citizen and salary recipient in Iraq possesses.

3. Some names that appear duplicated on the payroll, particularly in certain ministries of the Kurdistan Regional Government, were found to have the same names but different mothers’ names and ages (name similarities). There is no legal violation in these cases, but the federal finance ministry should not have withheld salaries without verifying the situation.

4. Regarding the salary issue of teachers and employees of Kirkuk’s educational institutions and other departments, whose payrolls are under the KRG, this is an ongoing issue dating back to 2003 and remains unresolved due to political disagreements between the KRG and Baghdad, which requires a fundamental political solution.

5. Regarding the increase in salary amounts for the months of June and July 2024, according to the federal court’s decision, the salaries of employees and retirees in the Kurdistan Region should be equal to those in the rest of Iraq. This resulted in an increase of 54.208 billion dinars for the requested salary amount for July. If this additional amount is excluded from the requested salary amount, the remaining amount will be close to the amounts allocated for the previous five months, which the federal finance ministry had already spent.

In conclusion, all parties must be aware that since 1992, there have been long-standing issues in the administrative, financial, and accounting systems between the KRG and the federal government. Since the federal court’s ruling in February of this year regarding the salaries of employees and retirees in the Kurdistan Region, both sides have been working to align their administrative, financial, legal, and accounting procedures. However, this remains a complex and challenging task.

We have been working on this since last year and will continue to do so, hoping that all issues will be resolved by the end of this year. We call on the federal finance ministry to cooperate and coordinate with us in resolving the remaining unresolved technical issues, rather than taking arbitrary actions against the employees and retirees of the Kurdistan Region.

In summary, we remind all parties that, 31 days since submitting the payroll list of employees and retirees of the Kurdistan Region to the federal finance ministry, the Iraqi finance ministry has only issued a spending order for 1.426 billion dinars, which accounts for just 0.14% of the total salary amount required for the employees of the Kurdistan Region.

Finally, let the employees and retirees of the Kurdistan Region judge whether this issue is administrative, financial, accounting, or political.

General Directorate of Accounting – Ministry of Finance and Economy