KRG finance ministry denies payroll cuts made under pressure from Baghdad

ERBIL — The Kurdistan Regional Government’s Ministry of Finance and Economy has refuted recent reports alleging the removal of 30,000 employees from the July payroll list, calling such claims “baseless.”

In a statement issued Saturday, the ministry addressed the allegations, stating, “The reported removal of 30,000 employees from the payroll is untrue.” The ministry explained that the July payroll list included 1,132,390 employees, both civilian and military, a slight decrease from June’s total of 1,132,967. This difference was attributed to 577 employees who retired without pay due to unresolved administrative issues, not removal from the payroll.

The controversy began following claims by NRT TV, funded by Shaswar Abdulwahid, leader of the opposition New Generation Movement, suggesting that the KRG had padded the July payroll with 30,000 extra names before sending it to Baghdad, which allegedly rejected the list and demanded the removal of the additional names.

As of now, KRG public sector employees are still waiting for their July salaries, typically disbursed by Baghdad. The KRG’s Ministry of Finance asserts it is not responsible for the delay, while the Federal Ministry of Finance has not yet commented on the matter, increasing frustration among employees.

The ministry also confirmed that after deductions for unpaid leave, taxes, and budget allocations, the total payroll for the Kurdistan Region for July stood at 956 billion dinars, consistent with previous months.

Addressing the spread of what it calls misinformation, the ministry warned it reserves the right to take legal action.

Regarding delays in salary payments, Deputy Speaker of the Iraqi Parliament, Shakhawan Abdullah, revealed he had contacted Prime Minister Mohammed Shia’ Al-Sudani, who reportedly was unaware of any delays. Abdullah also spoke with Iraq’s Finance Minister, Taif Sami, who assured him that the issue is being addressed in coordination with the KRG.

This salary delay comes amid broader financial challenges for the KRG following a March 2023 International Chamber of Commerce ruling in favor of Baghdad, which disrupted the KRG’s primary revenue source from independent oil exports. The last three months have seen unpaid salaries as the region and Baghdad have yet to finalize a mechanism for disbursing the KRG’s salary and budget share.

Following a February 2024 ruling by Iraq’s Supreme Federal Court, which mandated that the KRG hand over all revenues to Baghdad, the federal finance ministry has pushed for digitalization before releasing funds. This has led to significant protests in Sulaymaniyah and Halabja, with public sector employees demanding that salaries be managed through Iraqi banks instead of the KRG’s own MyAccount digital banking solution. Despite these tensions, salary payments were made in cash until June, but funds for July remain unreleased, causing further unrest.