Financial Oversight on the Kurdistan Region: Developments and Responses
The Iraqi Financial Supervision Bureau has stated that the issues highlighted in recent evaluations concerning the Kurdistan Region remain unresolved. However, sources within the Kurdistan Regional Government (KRG) assert that they have addressed all pertinent comments.
In a correspondence to parliament dated March 6, 2025, Ammar Subhi, the head of the Iraqi Financial Supervision Bureau, elaborated on a joint report prepared in collaboration with the KRG’s Financial Supervision Bureau. This audit covered the revenues and expenditures of the Kurdistan Region for the period from April 1 to June 30.
The letter detailed that the findings from the audit have been circulated to the Prime Minister’s office, the Ministry of Finance, the KRG, and parliament. Each entity is expected to take appropriate actions according to their responsibilities, reiterating that the comments outlined in the report remain unaddressed.
Jamal Kochar, a member of the Iraqi Parliament’s finance committee, noted that the Financial Supervision Bureau had previously outlined eight conditions on a two-page document regarding the Kurdistan Region. These conditions included stipulations concerning the payroll system and the verification of employee presence.
Kochar indicated that an official notification would be sent to the KRG, and practical steps would be undertaken to resolve the outstanding comments.
According to Article 12 of the General Budget Law, the Iraqi Financial Supervision Bureau is mandated to audit both oil and non-oil revenues, as well as the overall financial balance between expenditures and revenues.
In contrast, a source within the KRG affirmed that previous comments from the Iraqi Financial Supervision Bureau have been addressed satisfactorily.
This ongoing dialogue highlights the importance of financial oversight in fostering transparency and accountability in the Kurdistan Region’s economic framework. The responsiveness of both the Iraqi Financial Supervision Bureau and the KRG in resolving these issues will play a critical role in shaping fiscal policies and economic stability moving forward.
