Delay in PMF salaries sparks concern and speculation

BAGHDAD — Iraq’s Popular Mobilization Forces, a powerful government-backed paramilitary coalition, has delayed salary payments for June — the first such delay reported since the group was formally incorporated into the state security structure.

The delay, now more than a week past the usual disbursement date, has drawn criticism from within Iraq’s political class and stirred unease among the PMF’s rank and file. While officials have issued brief reassurances, no comprehensive explanation has been offered, leaving room for speculation and tension.

On Saturday, Hussein Ismail, director of finance and administration for the PMF, said salaries were “secured” and would be released “by mid-week.” He attributed the delay to a transition between banks. “New bank cards have been printed from Al-Nahrain Bank, replacing those issued by Rafidain Bank,” he said, adding that efforts were underway to release additional financial advances.

Despite those statements, MPs and PMF commanders have publicly questioned the delay.

“Is it fair or reasonable that the fighter affiliated with the PMF still doesn’t know the fate of his salary, which was not paid on time?” lawmaker Alaa Al-Haidari wrote on social media. “Is it reasonable to leave the fighter a hostage to the rumors of his enemies?”

The PMF, formed in 2014 to help combat the Islamic State, is a state-sanctioned umbrella group composed largely of Shiite paramilitary factions. While nominally under the authority of the Iraqi prime minister, many of its units have strong ties to Iran and operate with varying degrees of autonomy.

In a recorded statement, Meitham Al-Zaidi, commander of the Abbas Division, suggested U.S. financial sanctions may be playing a role in the delay. He claimed the U.S. Treasury and Federal Reserve had warned Rafidain Bank and the PMF that their intermediary payment company must be replaced or risk financial penalties.

The Central Bank of Iraq has dismissed concerns about liquidity, insisting that the issue is not related to available funds. “Liquidity is fully available, whether in Iraqi dinar or U.S. dollars. There is no shortage,” said Mohammed Younis, the bank’s director of investments, on June 2. He added that Iraq’s foreign currency reserves had exceeded $100 billion and that the country holds more than 163 tons of gold.

Nonetheless, the PMF leadership has yet to issue a full public statement addressing the delay, prompting continued concern among members whose salaries are backed by the federal budget.

While Iraqi authorities have not confirmed any direct link to U.S. restrictions, Al-Zaidi’s warning reflects broader anxiety over the growing impact of international financial scrutiny.

Washington has tightened oversight of dollar transfers to Iraq in recent years, citing concerns over money laundering and sanctions evasion. An investigation by The Wall Street Journal reported that electronic payment transactions in Iraq spiked by 2,900% in early 2023 — from roughly $50 million to $1.5 billion in a single month.