Economic Developments in Iraq
The head of the Federal Financial Supervision Bureau, Ammar Sobhi Khalaf, announced a significant proposal to amend the Bureau’s lawful framework established in 2011. This initiative is aimed at bolstering anti-corruption measures within the government. Khalaf indicated that the enforcement of a unified accounting system compliant with international standards will become mandatory beginning in 2026.
In a statement, Khalaf explained that the Financial Supervision Bureau has been operational since 1927, continually focusing on protecting public finances. He emphasized that anti-corruption efforts remain a priority for the government as part of its ministerial agenda.
Khalaf underscored the collaborative approach taken by the Bureau with internal audit teams across state institutions. He articulated that these partnerships are crucial in promoting transparency and integrity in public financial management.
Despite the Bureau’s progress, Khalaf acknowledged the multitude of challenges faced, noting that the discovery of financial misconduct can often be complex. Corruption often employs sophisticated strategies to evade oversight, necessitating a proactive and adaptive approach from the Bureau.
He highlighted the Bureau’s role in reviewing legislative proposals submitted by the State Council, which enables them to identify potential weaknesses in laws before these are forwarded to the Council of Ministers and subsequently to the House of Representatives.
The Bureau operates under Law No. 31 of 2011, and Khalaf asserted that after a period of 14 years, revisions to this law are overdue. Draft amendments have been prepared and submitted to the State Council, anticipating a future review by the Council of Ministers that, if approved, will strengthen the Bureau’s authority and effectiveness.
Khalaf emphasized the Bureau’s commitment to adopting international accounting standards, a move expected to significantly enhance the efficiency of financial operations and combat corruption in Iraq. Furthermore, a unified accounting system aligned with these standards has been developed, with its implementation being scheduled for 2025 as a trial phase, transitioning into mandatory application across all state institutions by January 1, 2026.
On the same day, Prime Minister Mohamed Shi’a convened the internal control conference, hosted by the Federal Financial Supervision Bureau under the theme “Control is the First Line in Fighting Corruption and Promoting Transparency”.
During the conference, the Prime Minister highlighted the importance of strengthening internal control and enhancing transparency in governmental operations. He reiterated that combating corruption is a central goal of the government program, pivotal for gaining public trust in governmental and political processes. He noted that effective internal control is a vital mechanism that safeguards against the misappropriation of public funds, reinforcing that it should facilitate a lawful and transparent administrative environment rather than impede effective governance.
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