Labor Minister Ahmed al-Asadi in a formal meeting
Labor Ministry says social protection stipends secure as dispute erupts over fund balances
BAGHDAD — The Ministry of Labor and Social Affairs on Sunday sought to reassure beneficiaries that social protection stipends remain fully funded and paid on schedule, issuing a clarification after media outlets interpreted televised remarks by Labor Minister Ahmed al-Asadi as signaling problems with the Social Protection Fund.
In a statement, the ministry said “some media outlets circulated inaccurate explanations of what was stated in the minister’s comments regarding the financial situation of the Social Protection Fund,” and that clarification was needed “to prevent misunderstanding.” It stressed that stipends are a legal entitlement for low-income families under Social Protection Law No. 11 of 2014 and are “fully secured within the federal budget.”
The ministry said the fund’s balance is “digitally confirmed and fully recorded in the ministry’s accounts at Rafidain Bank” and cannot be spent outside the approved framework. It attributed confusion to the minister’s reference to liquidity issues at banks rather than the disappearance of funds. According to the statement, the televised remarks concerned “a lack of immediate withdrawal readiness, despite the digital confirmation of balances.” The ministry said Rafidain Bank confirmed this in writing.
“It was about liquidity, not the loss or absence of balances,” the ministry said, urging media to place the minister’s comments in context.
Al-Asadi’s interview with Alawla TV prompted the dispute. He said the Social Protection Fund “had a balance of 430 billion dinars when I took office” and that he increased its capital to “two trillion five hundred and thirty billion dinars” three months ago. He said revenue came from fines, salary contributions and “1 percent profits from state-owned companies.”
He said the ministry had prepared a ten-year investment plan so the fund could eventually finance itself without relying on the federal budget. “We wanted to start investments two months ago,” he said, but when the ministry reviewed the situation, “we found that the two and a half trillion had all been withdrawn.” He added that a dispute arose between the Ministry of Finance and Rafidain Bank over who had acted, saying “each side blames the other,” and claimed the amounts “were used to buy bonds.” He said the ministry filed a lawsuit.
Al-Asadi said the ministry has been selling bonds each month “to ensure continued payment of stipends.” He added that when global oil prices fell below 70 dollars per barrel, “we faced difficulty paying stipends, but they are completed at the end of the month.” He also suggested the amounts “perhaps were also withdrawn to complete public employee salaries.”
The Ministry of Finance rejected that characterization, saying Sunday that the fund’s money “was not withdrawn but the account was frozen only.” It said the minister’s televised statements included “inaccurate information regarding the withdrawal of the Social Protection Network account balances.”
According to the ministry, the account was opened in 2015 and centrally funded to pay stipends. It said the Labor Ministry “did not follow the account balance correctly” and that deposits, including recovered smart-card funds, were added contrary to the account’s nature. Citing audits by the ministry and the Federal Board of Supreme Audit, it said the account had been used “outside its intended purpose,” but that “all funds remain in the account and were not withdrawn.” It said the issue was addressed in a 2025 audit letter requesting a full review of revenues.
Rafidain Bank also denied the minister’s account, saying it “had not received from the Ministry of Labor or the fund’s administration any request or desire to invest or withdraw these amounts.” It said the minister’s comments conflated two different accounts. According to the bank, the Social Protection Network account, which is funded centrally by the Ministry of Finance, holds 2,495,921,687 dinars, while the Social Protection Commission Fund account holds 390 billion dinars. It said both balances are fully available, with no shortage or withdrawal, and that the bank’s role is limited to executing official payment orders.
The bank said it had not received any communication regarding a lawsuit and had no approval from the Ministry of Finance allowing transfers between the accounts.