Title: Iraqi Ministry of Finance Addresses Payroll Compliance in Kurdistan Region
The Iraqi Ministry of Finance has indicated that as of now, the Kurdistan Region has not submitted any specific data regarding the payroll disbursement related to the salaries of its civil servants across various banks. The ministry has emphasized the necessity for transparency regarding those who receive more than one salary.
In a statement released today, Wednesday, January 29, 2025, the ministry responded to comments made by the Regional Government. It insisted, "In a comprehensive and professional manner, and similar to the approach taken by other ministries and provinces, we are engaged in the matter concerning the payroll files of the Kurdistan Region."
The Iraqi Ministry of Finance reiterated, "The disbursement of salaries is not related to the Ministry of Finance as we intend to implement federal court decisions that have been in place for over a year, and to date, the Kurdistan Region has not provided any specific data regarding the fulfillment of the payroll obligations of its civil servants across all banks."
Regarding the reasons behind the payroll disbursement in the Kurdistan Region, the ministry’s release noted, "The classification of those civil servants who are stationed in disputed areas necessitates a solution from the federal Ministry of Finance, which has dispatched a team to manage the accounting and budgetary issues with the Kurdistan Region for over ten working days to audit the lists and record those who are stationed. This is essential to calculate the salary disbursements based on the 2019 Residency Law’s Article 26, which also facilitates recalculation of payments exceeding 100,000 dinars for residents and assessing final service bonuses, especially for retired civil servants, among those who are likely to be impacted by the law."
The release also highlighted the ongoing auditing of the Peshmerga forces, which are integrated into the federal defense structure. It stated that the salary payments for these individuals will rely on the Ministry of Defense, as their payments are directly managed by that ministry.
The Ministry of Finance has called on the Kurdistan Region to clarify which individuals are receiving more than one salary and to ensure that Kurdistan’s laws are duly respected. The ministry underscored the importance of submitting copies of those laws in order to prevent any duplication of names on monthly payroll lists.
In terms of the processes surrounding the implementation and disbursement of salaries, the ministry noted, "The disbursement is fundamentally tied to implementing federal court decisions and not merely dependent on internal circulars. This will ensure the integrity of the salary distribution process." Moreover, the Ministry of Finance asserted that the Kurdistan Region holds responsibility for fulfilling salary obligations for employee groups.
Additionally, the ministry clarified that any audits for the monthly payroll for January 2024 are still underway, primarily due to errors in submissions from the Kurdistan Region. The federal body is actively working to rectify the situation, as compliance with financial regulations is essential for the sustenance of the budget. The ministry reaffirmed its ongoing commitment to providing civil servants’ salaries due for February, as the current month still bears significance.
This statement comes against the backdrop of ongoing discussions regarding the financial management challenges being faced by the Kurdistan Region, with urgent calls from leadership to address the deteriorating financial conditions affecting public sector employees.